IN THIS ISSUE
DEALER NEWS & INFORMATION
– Auto Industry News at a Glance
REGULATORY & LEGAL UPDATES
– Overtime Exemption: Dealership Service Personnel - Additional Guidance
– 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
– State Compliance Manual Training
CALENDAR OF EVENTS
– Upcoming Events
– CADA Annual Golf Event
HIGHLIGHTS & TRANSITIONS
–Share Your Accomplishmens
–All the News That's Fit to Email!
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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.
- Auto Shanghai 2011
The Detroit News, April 2011
Renault's Dizir concept car has been making the rounds at the world’s auto shows.
- Colorado Auto Group Aims To Get Clunkers Off The Road
CBS 4 Denver, March 29
The Colorado Automobile Dealers Association says it hopes to remove 1,000 high-polluting cars from roads this year through a program with car recyclers.
- On Earth Day, cleaner cars
Daily Camera, April 17
Colorado consumers face a dilemma: How can we continue to conveniently travel on a daily basis to work, school or home while limiting our impact on the environment?
- Alfa Romeo Readies a Stirring Stateside Return
The Wall Street Journal, April 16
When it comes to handicapping the chances of Fiat and Alfa Romeo cars in the U.S.—as part of the Chrysler-Fiat merger, Fiat has landed this year and Alfa will land in late 2012, with the 4C sports coupe—I think about the metric system.
- One less gas-guzzler on the streets
Glenwood Springs Post Independent, April 22
Jeff Carlson, owner of Glenwood Springs Ford, donated this trade-in Ford Windstar van on Thursday to Jill Unfried, program coordinator for Clear The Air Foundation of Denver.
- Halo lights give piercing eye effect to muscle cars
Detroit Free Press, April 21
At a Dodge and Chrysler car gathering on an abandoned airstrip in Irvine, Calif., owners treated these so-called halo lights as automotive must-haves for those who want to turn heads.
- Shanghai, NYC car shows are at an intersection
MSNBC, April 21
Unusual dueling dates show the rising prominence of Chinese market for automakers
- Nissan Leaf: 2011 World Car of The Year
CNN Money, April 21
The all-electric Nissan Leaf was named the 2011 World Car of The Year at the New York Auto Show on Thursday.
- Bigger Countryman stays true to Mini roots
The Detroit News, April 21
How big can a big Mini get, when a big Mini can't get big?
- This Earth Day; Look to automobiles for solutions
Tim W Jackson, Wordpress Blog
See more at http://timwjackson.wordpress.com
- 'Revenge of the Electric Car' opens, and puts GM in positive light
Detroit News, Autos Insider
See more at www.autosinsider.com
- Chris Paine Stages a Discussion of the Electric Car’s Future at the Tribeca Film Festival
The New York Times, Wheels
See more at http://wheels.blogs.nytimes.com
- With hybrid, Porsche now offers seven Panamera types
USA Today, DriveOn
See more at http://content.usatoday.com/communities/driveon/index
- Toyota says car production will be disrupted until late in the year
Los Angeles Times, Autos
See more at http://www.latimes.com/classified/automotive/highway1/
- Best Used Cars: SUVs Under $15,000
See more at http://autos.aol.com/
- SUVs: Safer, Heavier, But What About the Gas?
The Wall Street Journal CARS
See more at http://online.wsj.com/public/page/news-autos-automotive.html
- 6 affordable new cars that go easy at the gas pump
See more at http://money.cnn.com/autos/
…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:
- Fisher & Phillips, Legal Alert, 4/11/2011, The FLSA Overtime Exemption for Service Writers; Is the sky really falling?
- 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
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
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
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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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State Compliance Manual Training
June 21, 22, 23
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 email@example.com
Annual Golf Event
Monday, September 12, 2011
Usually a 12:00pm Shotgun Start
Green Gables Country Club
6800 West Jewell Avenue
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 firstname.lastname@example.org. Also include your contact information for further follow-up.
- 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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