APRIL19, 2011

IN THIS ISSUE

DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

REGULATORY & LEGAL UPDATES

Overtime Exemption: Department of Labor Reverses Longstanding Position on Dealership Service Personnel

 

LEGISLATIVE UPDATE

Summary of the Budget Deal Between the Senate Democrats and Republicans

CADA Priority Legislation Awaits Governor Signature

Obama Signs Repeal of Health-Care Law's '1099' Tax-Reporting rule

 

UPCOMING SEMINARS

DOT Hazmat Shipping Rules Explained in Plain English


CALENDAR OF EVENTS
Upcoming Events


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

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e-newsletter archives.

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& Legal Articles
from the Open
Road e-newsletter.

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Outlook
archives.

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Outlook
archives.


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www.nada.org


www.aiada.org

CLICK HERE for NADA
Regulatory Affairs information
.


STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division
of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section
of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment
website.




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 AUTO INDUSTRY NEWS AT A GLANCE

Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.



…more news articles are included at the end of this issue.




OVERTIME EXEMPTION: DEPARTMENT OF LABOR REVERSES LONGSTANDING POSITION ON DEALERSHIP SERVICE PERSONNEL
NADA 60-second Email, April 13, 2011

Are “service writers, service advisors, service managers, and service salesmen” exempt from overtime?

For at least 32 years, the U.S. Department of Labor (DOL) has advised car and truck dealers and its own staff that the answer, unequivocally, is yes. In addition, a uniform and uncontroverted line of federal court cases dating back to 1973 has held likewise.

In 1987, the DOL indicated that it intended to correct its federal wage and hour rules to reflect its decades-long position on the matter. In July 2008, the DOL finally proposed to do so. NADA responded with comments in support of the proposal, fully expecting the proposed corrections to be made. However, in an April 5, 2010, final rule, the DOL indicated that not only that it was not going to correct its rules, but also that it intended to reverse its 32-year position on the matter.

On April 7, I joined NADA staff in a meeting at DOL to express NADA’s concerns, to review the agency’s position, and to explore alternatives. Bottom line: it was clear that the DOL staff had done little or no analysis to justify their decision. Consequently, NADA yesterday submitted a letter to Secretary of Labor Hilda Solis asking her to reconsider the matter.

So, where does that leave the overtime exempt status of “service writers, service advisors, service managers, and service salesmen”? Please carefully note that:

     1. While for now the DOL has decided not to make the regulatory corrections it proposed, it has not yet formally revoked its opinion letter and enforcement policy on the issue. Thus, they are still in effect.

     2. Moreover, as detailed in NADA’s Dealer Guide to the Fair Labor Standards and Equal Pay Act, dealership employees who earn over half of their compensation from commissions, and who earn at least one and one half times minimum wage for each hour worked likely are covered by a separate federal exemption from overtime. Many “service writers, service advisors, service managers, and service salesmen” meet these criteria. (To access the guide, sign in to NADA University, select “Resource Toolbox,” then “Driven Management Guides.” Scroll right to the last category, “Driven Management Guide Archives,” and select. Find NADA’s Dealer Guide to the Fair Labor Standards and Equal Pay Act after you read the disclaimer.)

     3. State wage and hour laws can be different, requiring dealerships to pay close attention to any variations in their state.

NADA will update you on any new developments as we move forward. Questions? Contact NADA Regulatory Affairs regulatoryaffairs@nada.org or 703.821.7040.

Bill Underriner
NADA Vice Chairman

REMINDER: One of the benefits to CADA dealer members is an associate membership with Mountain States Employers Council, which specializes in all areas of employment law. For assistance on the topic above and other employment law issues call 303.839.5177 or visit the following for more information: http://www.msec.org

* * * * * * * *

If you have questions on any legal or regulatory topic, please contact:

DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance


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SUMMARY OF THE BUDGET DEAL BETWEEN THE SENATE DEMOCRATS AND REPUBLICANS

1. Agreement on balanced budget for State of Colorado.

2.  Reduction in proposed cuts to K-12 from $332 million to $250 million
this includes transfers of approximately $36 million from the public
land fund to cushion against higher reductions. This also maintains
state funding for preschool and full-day kindergarten programs.

3. No new taxes or use of fee-based cash funds.

4.  Emergency cash reserve of 4% of General Fund appropriations.

5.  At least an additional $100 million balance in state education fund.

6.  A reduction of (unknown amount) across many programs, as recommended
by the JBC.

7.  Transfers of "about" $71 million in severance tax funds to balance
the GF and eliminate a recently-enacted ag tax.

8.  $20 million for the state for each of the next 2 years for the
allotment to vendors for collecting sales taxes, restoring to the full
allotment thereafter.

9.  Suspension of the sales tax exemption for tobacco products, equating
to $31 million in GF revenue for the next 2 fiscal years.

10.  A legislative declaration of fiscal emergency for another year,
permitting the transfer of $33 million in tobacco taxes to be used for
budget balancing.

* * * * * * * *

CADA PRIORITY LEGISLATION AWAITS GOVERNOR SIGNATURE

HB 1185 by Rep. Ramirez and Sen. Mitchell, which requires banks and lenders to provide a lien release and motor vehicle title within 15 days of the final payment on an auto loan, is headed to Colorado Governor John Hickenlooper for his signature.  The House has concurred with the Senate amendments and re-passed the bill by a vote of 63 to 0 to 2 (Rep. McKinley and Rep. Kagan had excused absences).

This is a huge success for Colorado dealers and consumers and we appreciate all dealer participation in getting this legislation passed.  We will let you know when the bill has been signed by Governor Hickenlooper and, once signed, it will be immediately enforceable.

OBAMA SIGNS REPEAL OF HEALTH-CARE LAW'S '1099' TAX-REPORTING RULE

President Obama on Thursday signed into law a measure that repeals the unpopular 1099 tax-reporting provision of the national health-care law. The Senate earlier this month voted 87-to-12 to repeal the 1099 provision. The House passed the measure in March on a bipartisan 314-to-112 vote. Obama’s signing of the legislation into law marks the end of a nearly eight-month-long effort by lawmakers to do away with the 1099 tax-reporting provision.
Source: The Washington Post (4/14/2011)

NADA successfully worked to help build support for the repeal of the ‘1099’ mandate, which will provide relief for dealers by significantly reducing their paperwork burden. Dealers' grass-roots activity was a significant contributor to this effort.
NOTE:  While businesses must continue to issue a 1099 form for each unincorporated service provider it pays over $600 per year, the new mandate would have applied to all vendors, significantly increasing dealerships tax reporting duties, starting in January 2012.


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DOT HAZMAT SHIPPING RULES EXPLAINED IN PLAIN ENGLISH
How to ship Hazardous materials by ground and air, while keeping regulators happy

KPA has documented a significantly high number of hazardous material audits conducted by the Federal Aviation Administration (FAA). With hazmat violations up to $50,000 per incident, any spike in regulatory enforcement is cause for alarm. Even if you're familiar with DOT regulations this webinar is recommended, as we're finding many employees are confusing the requirements for shipping hazmat by ground and air.

Thursday, April 21, 2011
10:00am - 11:00am (MDT)

REGISTER ONLINE!

Presented by Peter Zaidel

Peter Zaidel manages KPA’s EH&S compliance offerings. He monitors OSHA changes and heads up KPA’s learning management and content development. Peter holds a Bachelor of Science degree in Environmental Resource Management and Environmental Engineering from Penn State University.

 

 

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

DOT HAZMAT SHIPPING RULES EXPLAINED IN PLAIN ENGLISH

Thursday, April 21, 2011

10:00am - 11:00am (MDT)

Click for more information and to REGISTER ONLINE!

If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org



Event Description
Date/Time
Location

Stay tuned for upcoming events!

 


 




LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.


THE AFTERFACT


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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org