APRIL26, 2011

IN THIS ISSUE

DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

REGULATORY & LEGAL UPDATES

Overtime Exemption: Dealership Service Personnel - Additional Guidance

 

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

Upcoming Seminars
State Compliance Manual Training


CALENDAR OF EVENTS
Upcoming Events

CADA Annual Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

CLICK HERE for a list of current
Endorsed Vendors/Programs
.

CLICK HERE for a list of current
Allied Members
.

CLICK HERE for an order form for
CADA forms
.

CLICK HERE for information on all member services.



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.




Visit us at www.coloradodealers.org.


CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.

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CADA STAFF

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

CLICK HERE or scroll to the bottom
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added or removed from our list.


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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs
.

 

 

 


If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.


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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: DEALERSHIP SERVICE PERSONNEL - ADDITIONAL GUIDANCE

Last week, we provided NADA’s alert to dealers, regarding the recent Department of Labor (DOL) pronouncement about the overtime exemption for service personnel (“service writers, service advisors, service managers, and service salesmen)”.  There is wide agreement that this is a reversal in position that goes against many court opinions to the contrary, dating back to the 1970’s, and also against previous DOL guidance.  Two of the top national law firms with employment practices that specialize in automotive dealerships have also issued general opinions and provided further background:

  1. Fisher & Phillips, Legal Alert, 4/11/2011, The FLSA Overtime Exemption for Service Writers; Is the sky really falling? 

  2. Ford & Harrison, Legal Alert, 4/7/2011, Department of Labor Reverses Position on Exemption of Service Advisors Working for Automobile Dealerships 

What seems to be certain, above all, is that DOL's latest commentary indicating a reversal likely means the DOL will increase audits in this area, private lawsuits could also increase, and DOL—if NADA’s appeal to the Department Secretary is unsuccessful—will likely seek dealership test cases to try to find more friendly courts for this ‘new’ position.  For those unlucky target dealerships, this could prove costly to defend, even if they ultimately prevail. Dealerships should assess such audit and litigation risks in deciding how to proceed and carefully evaluate how overtime is currently being paid and ensure that any exemptions are being applied correctly.

Further Assistance – Alternative Overtime Exemptions May be Available:
To assist with this, Mountain States Employers Council has supplied an overview of one of the other possible overtime exemptions that may also be applicable to service personnel, the “Retail or Service Establishment Exemption”.  CLICK HERE for that guidance (see page 8).

Regarding any state law variances, MSEC has noted that the Colorado Department of Labor has previously indicated their intent on exempt status determinations is to be consistent with federal law and with any U.S. Dept. of Labor interpretations.

CADA dealer members are able to obtain basic support and guidance from Mountain States Employers Council, which specializes in all areas of employment law:

  • Denver  303.839.5177  |  toll free: 800.884.1328
  • Southern Colorado Regional Office  719.667.0677  |  toll free 800.884.1328
  • Northern Colorado Regional Office  970.223.4107  |  toll free 800.884.1328

Visit last week’s Open Road article for NADA’s alert on this Department of Labor pronouncement:
Open Road, 4/19/2011, Overtime Exemption: Department of Labor Reverses Longstanding Position on Dealership Service Personnel, NADA 60-second Email, April 13, 2011

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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.

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

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

State Compliance Manual Training

June 21, 22, 23

TBD

More registration details coming soon!

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

CADA
Annual Golf Event



Monday, September 12, 2011

Usually a 12:00pm Shotgun Start


Green Gables Country Club
6800 West Jewell Avenue
Denver, 80232

Registration coming soon!




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

  • 2012 Honda Civic Si - First Drive Review
    Car and Driver, April 2011
    Down 1000 rpm on its predecessor, the Honda Civic Si searches for its mojo.
  • Chevy to sell high-mpg Malibu
    The Detroit News, April 20
    Chevrolet will sell a high fuel-economy version of the all-new 2013 Malibu, which will use its new gas-saving e-assist technology, the company announced today.
  • Redesigned 2012 Subaru Impreza bows at the New York auto show
    Auto Week, April 20
    The redesigned 2012 Subaru Impreza made its debut in New York on Wednesday with a more refined look, a longer wheelbase and a new four-cylinder engine.
  • The Worst Cars On The Road
    Forbes, April 13
    To determine our list of the worst-made cars on the road, we started with the lowest-rated vehicles from six reliability and performance studies conducted this year.
  • Nissan will take new US orders for electric Leaf
    MSNBC, April 20
    Nissan Motor Co. will resume taking U.S. reservations for its Leaf electric car on May 1, Nissan Americas Chairman Carlos Tavares said Wednesday.
  • Hyundai to offer trade-in guarantee
    The Detroit News, April 20
    Hyundai Motor America said today it would start guaranteeing customers trade-in value for its cars at the time of purchase.

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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