In what experts are calling a “logistical identity crisis,” several U.S. trucking fleets have reportedly accidentally leased themselves in a wave of overly complex lease-to-own arrangements gone wrong.
“We discovered our company had technically become its own owner-operator,” said Julie Tan, compliance manager at Velocity Freight, while flipping through a stack of duplicate invoices. “We’re invoicing ourselves. At this point, it’s unclear who’s even approving time off.”
The confusion began earlier this quarter as fleets scrambled to restructure driver lease programs amid rising costs and shifting labor laws. Somewhere along the line, corporate entities began signing lease agreements with their own subsidiaries, resulting in a paperwork ouroboros that’s now choking operations.
“Our tax department is having an existential breakdown,” Tan added. “We may have to file a 1099 with a mirror.”
Drivers are not enjoying the metaphysical accounting.
“So let me get this straight,” said lease-op Calvin ‘Double Shift’ Dixon, “if I break down, I’m expected to sue myself, offer myself roadside assistance, and then negotiate a settlement… with myself? Do I at least get a deductible?”
Some legal analysts have attempted to untangle the mess, referring to the situation as a “circular business model with self-inflicted liability.” One law firm reportedly received an email from a client asking whether it’s legal to discipline yourself as both employer and employee, followed by a second email from the same address threatening to report itself to HR.
The first formal case was filed last week: “Velocity Freight v. Velocity Freight HR Department.” Court documents include a note from the company CEO stating, “We hope to reach an amicable resolution, assuming we can find a neutral arbitrator who is not also on our payroll.”
Meanwhile, the FMCSA has issued a gentle reminder to carriers to read lease agreements thoroughly and confirm that their corporate signatures aren’t just being looped back into their own inboxes.
“We just wanted a cleaner structure for our drivers,” said Tan. “Now we’re considering hiring a philosopher to explain if we still exist as an employer.”
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