I should've clarified I'm HD/Ground. All but 2 contractors in our building pays by the day.
The contractor that pays hourly is technically salary. They pay you for 10 hours whether you work 6 hours or 12 hours. Had a driver find that out the hard way when he worked 90 hours during peak and got paid for 60 hours.
The other contractor pays by stop. $1 per stop going out with around 200 stops.
My contractors average pay is $140/day. $120/day in the low end and there's rumor of one driver making $185/day.
Here in California it’s illegal to pay someone a day rate. If you’re not a salaried employee, this resulting in you being paid if you’re there or not, you must be paid hourly including overtime after 8 hours.
What the contractors do to get around that is changing your hourly pay depending on the hours worked, so that you end up with the same daily pay.
Also it’s worth adding, they have incredibly high turnover and quite a number of them, along with OnTrac drivers have ventured over to UPS. Not all have made it but most do quite well. Most actually relish in the idea of being a real employee, something that Ground drivers aren’t.