Construction hauling broker

Definition

California makes a construction hauling broker pay independent truckers by the twenty fifth each month.

Why It Matters

Where most revenue arrives through brokers in California, the payment terms are set by statute and not by the invoice. A broker must pay by the twenty-fifth day of the month following the haul when the hauler bills by the fifth, with a penalty of two percent a month on anything improperly withheld. That is a working-capital fact, not a legal footnote, and a model built on thirty-day terms will be wrong by weeks. It also means the customer relationship belongs to the broker and not to the operator.