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2011 IADA OFFICERS
Chairman
Tim Mooney
Tim Mooney, Inc.
Tuscola
Vice Chairman
Jim Lombardi
Lombardi Chev Buick
Wilmington
Treasurer
Gary Knight
Carmack Car Capitol
Danville
Secretary
Mike Mangold
Mangold Ford
Eureka
President
Peter Sander
IADA
Springfield
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Your
IADA
Partner
Moving Vehicle Registration Into The Future
(click logo for more details)
Your
IADA
Partner
For Insurance Solutions
to Protect Your Dealership
(click logo for more details)
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November 15, 2011 Vol 2011, Issue 11
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DEALER ALERT
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IADA has been advised to notify dealers that a car theft ring has been working the central Illinois area and at least two dealers have been stung with new car vehicle thefts. Dealers in Taylorville and Jacksonville have reported that two black men arrive at almost closing time and, while one of the men distracts sales personnel by discussing vehicles with them, the other man is believed to obtain keys to vehicles in the dealer’s inventory. Later in the evening, vehicles were stolen from the dealership’s lots. It appears the thieves have been focusing on high end vehicles. We recommend that you be sure to secure the keys to your vehicle inventory.
The Illinois State Police and Secretary of State Police have been investigating the thefts and are asking dealers to be on the lookout for any suspicious activity.
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IADA/CATA SPRING CONFERENCE SET FOR MARCH 24-28, 2012
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We are pleased to announce that our state spring conference is being planned for March 24-28, 2012, at the Harbor Beach Marriott in Ft. Lauderdale, Florida.
IADA members are guaranteed ocean front rooms at the beautiful seaside getaway. Highlighted by a pristine oceanfront location & close proximity to the airport, Harbor Beach Marriott Resort & Spa in South Florida embodies an upscale retreat. Secluded on 16 waterfront acres, guests enjoy an idyllic private beach setting near the area's top attractions. Our Fort Lauderdale resort's 22,000-sq-ft spa boasts indigenous treatments & views of sparkling Atlantic waters. An abundance of recreation, water sports, a tropical lagoon pool & children's activities make this Fort Lauderdale luxury resort's facilities one of a kind. Mark your calendars and plan to join us for this special getaway!
Registration information coming soon! |
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VETO SESSION ENDS - SET TO RETURN FOR SPECIAL SESSION
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The Illinois House and Senate will return November 29th for an extra Fall Veto Session day to try and deal with the multitudes of legislation that didn't get finished during the six-day fall veto session. As far as accomplishing much - the second and final week of the annual state legislative veto session was disappointing, with no major issues being addressed. Some of the issues that need to be addressed include the following:
• Budget---Trying to find extra revenues to be put into state coffers in order to prevent immediate threats of state facility closures and employee layoffs. Right now legislators weren't able to come to a consensus on how to shore up funding problems.
• Gaming----Expansion of Gaming, which includes additional casinos, one in Chicago failed in the House Chamber. Doubtful if this proposal will pass this year.
• Taxes---The House could not come up with enough votes to get a tax-- CUT deal done during the regularly scheduled veto session. The General Assembly will be meeting next week to hammer out some type of tax-cut legislation. Legislators need some type of tax-cut legislation bill to be passed because of the upcoming 2012 elections facing them. It's all about RE-ELECTION.
• Pensions---As expected, a major pension reform didn't pass this week. Opposition is strong among the rank and file legislators because of the strong union pushback. Do not expect to see a pension reform bill passing during the expanded veto session this year.
• Paying Overdue State Bills-----There was no legislation or credible plan that ever surfaced during the Veto Session to pay off the state’s huge backlog of overdue bills to providers, vendors, schools, local governments, transit districts, etc. this fall. Again, the state owes close to $8 billion in overdue bills.
• Regional School Superintendents’ Salaries---- Governor Pat Quinn vetoed $11 million for regional school superintendent’s salaries. The General Assembly has passed a one-year solution to pay salaries--- now they are taking monies from a corporate tax fund tapped by local governments which will help pay salaries.
The 2012 General Assembly Calendar surfaced this week. The 2012 legislative session will begin January 10th and will adjourn May 31st. This is the second year of a General Assembly two-year cycle--the second year of a cycle generally concentrates on budget issues. However, in the last few years all issues are put on the table for consideration.
IADA will keep you updated once the Legislature returns later this month. |
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BETTER BY ASSOCIATION - 2012 MEMBERSHIP FEES
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IADA has mailed all members their annual membership fee statement for 2012. Included with the statement are voluntary contributions to CAR of Illinois and the IADA Legal Defense fund.
Car of Illinois is IADA’s state wide political action fund that supports candidates running for state wide offices and the Illinois Legislature. Since we are a state political action committee we cannot contribute to federal candidates – that is the function of DEAC, through NADA.
The Legal Defense Fund was established to assist dealers with legal support when an action impacts dealers statewide. This year the IADA Legal Defense fund supported an Illinois dealer in an appeal of a franchise dispute before the Illinois Supreme Court!
By working together we can make a difference! We are all Better By Association!
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NLRB HAS POSTPONED THE EFFECTIVE DATE
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UPDATE: THE NLRB HAS POSTPONED THE EFFECTIVE DATE FOR THE NEW MANDATORY NOTICE OF EMPLOYEE RIGHTS UNDER THE NATIONAL LABOR RELATIONS ACT TO JANUARY 31, 2012
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The National Labor Relations Board announced that it will delay the effective date of the NLRB notice posting requirement from November 14, 2011 to January 31, 2012. According to the Board the delay is to allow for enhanced education and outreach to employers. However, this delay will likely allow lawsuits filed by numerous employer groups to be resolved before the rule potentially goes in effect.
The (NLRB) issued a mandate requiring all businesses covered by the National Labor Relations Act-including dealerships-post a notice informing employees of their rights under the Act. A downloadable copy of the poster is now available on NLRB's website by clicking here.
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DEAC NEEDS YOUR SUPPORT
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A special DEAC mailing was sent to members asking for your support of DEAC to help us reach our Illinois goal for this year. DEAC traditionally provides more in contributions to Illinois Congressional incumbents and candidates than it raises in our state! This past year Illinois was one of only two states that did not meet our fundraising goal! Please help us with your contribution today!
Only personal checks are acceptable to federal political action committees and DEAC may not contribute to any state candidates. NADA is the dealer voice on national legislative and regulatory matters and needs a strong national political action committee to further support for national issues affecting franchised dealers.
For those dealers who have not yet participated, contribution forms are linked below for your consideration. An updated list of dealers contributing to DEAC can be found on the IADA Website under the heading About Us and then click DEAC Federal Pac.
DEAC Contribution Form |
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'TIME OUT' NEEDED FOR CONGRESS OVER FUEL ECONOMY REGULATIONS
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Jamie Auffenberg Jr., NADA Director State of Illinois
It seems like just yesterday we were talking about the new fuel economy standards for Model Years 2012-2016. But the Obama administration, driven to act by California, is particularly motivated to get the next round of standards done three years before it is required to do so. The latest proposal, 54.5 mpg by 2025, has raised some eyebrows. Most automakers have in principle agreed to the plan. But it’s far from the finish line. And if a growing number of congressmen have their way, the administration’s efforts could be put on hold.
Last month, the NADA applauded the bipartisan efforts of congressmen whose letter to the chairmen of the powerful House appropriations committee and the House appropriations subcommittee asked that the Environmental Protection Agency be given a one-year “time out” from its work on fuel economy standards for 2017-2025 and prevent California from implementing its “patchwork” fuel economy regulations. Members of Congress asked for support of an amendment by U.S. Reps. Steve Austria (R-Ohio) and John Carter (R-Texas). That letter and recent oversight hearings featuring several prominent House members, including Rep. Darrell Issa (R-Calif.), chairman of the House Oversight and Government Reform Committee, have ramped up pressure on the administration to justify its cost assessment of its proposed fuel economy rule. (By the administration’s own estimates, the proposed mandates will add an average of between $3,100 and $3,600 to the price of a new vehicle.)
The NADA thinks it is entirely too early to be talking about fuel economy proposals that won’t even be acted on until 2015. We back a more practical approach that will allow us to learn from the current standards and see how consumers in the marketplace react to them. That’s why we support the Austria-Carter amendment, which seeks to ensure the impact of these rules on jobs, consumer choice and vehicle costs are properly evaluated. The amendment also would achieve one of the NADA’s top regulatory priorities by temporarily returning rulemaking authority to the National Highway Traffic Safety Administration, the only agency required by law to consider the economic and safety impact of fuel economy increases.
Since this issue could severely affect our ability to provide our customers with the cars and trucks they need and can afford, our goal is to have regulators address legitimate questions about cost and affordability. With the help of Congress, we just might get that chance.
In legislative and regulatory news . . .
• Several new rules affecting dealerships that accept credit or debit cards took effect Oct. 1. The rules, issued by the Federal Reserve Board as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, include provisions that (i) cap debit card interchange fees paid by merchants to debit card issuers each time a customer pays with a debit card; (ii) give merchants options for routing electronic debit transactions over any network that is enabled to process them; (iii) prevent payment card networks and card issuers from designating an exclusive network for processing debit transactions; and (iv) prevent payment card networks from imposing restrictions on merchants’ ability to offer customers discounts for using cash or certain other methods of payment. The FTC has provided details on these new rules online (http://business.ftc.gov/documents/bus78-new-rules-electronic-payments-lower-costs-retailers). Notably, numerous other issues affect dealers’ acceptance and treatment of credit card payments in the context of a vehicle financing transaction. Dealers should review their agreements with their finance sources or contact their legal counsel for details.
• Representatives from the NADA and several dealerships will participate in the third and final roundtable discussion on the selling and financing of motor vehicles. The Nov. 17 gathering will focus on the vehicle leasing process. As they did with the first and second sessions, NADA representatives will continue to demonstrate to the FTC the absence of prevalent practices that would justify additional regulation of dealers and show that any such regulatory activity would have the unintended consequence of decreasing access to, and increasing the cost of, credit to the very consumers the FTC is charged to protect. A previous roundtable examined how military personnel finance automobile purchases.
• The Federal Trade Commission is warning small businesses that an email with a subject line “URGENT: Pending Consumer Complaint” is not from the FTC. The email says that a complaint has been filed with the agency against their company. The FTC advises not to click on any of the links or attachments with the email. Clicking on the links may install a virus on the computer.
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EMPLOYEE VS. INDEPENDENT CONTRACTOR?
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Now more than ever, dealerships should act with caution when deciding whether to classify workers as “contractors” vs. “employees.” Following several recent unsuccessful attempts by Congress to legislate the issue, the Obama administration is making worker classification an enforcement priority. Misclassifying “employees” as “independent contractors” risks serious liabilities, including unpaid federal, state, and local income tax withholdings, social security and Medicare contributions, wages including overtime, workers' compensation and unemployment insurance premiums, employee benefits, and penalties.
Late last month, the Internal Revenue Service (IRS) and Department of Labor (DOL) agreed to a coordinated enforcement effort on employee misclassification. The stated goal of this $30 million plus effort is to ensure better protections for employees and to level the playing field for law-abiding employers.
The IRS also has launched a Voluntary Classification Settlement Program (VCSP) aimed at encouraging employers to step up and confess to past worker misclassifications. In addition, several states are focusing enforcement resources at worker misclassification, in part motivated by the potential for additional tax and premium revenues. Lastly, there lately has been an increase in the number of unemployment insurance and workers compensation claims brought by “independent contractors” arguing that they should have been classified as “employees.”
The heightened level of federal and state scrutiny in this area may warrant that dealerships carefully review and document how their workers are classified. When making worker classification decisions, dealerships should be careful, be conservative, and be prepared to document, document, document. The IRS, the DOL, and the states use multi-factor legal standards and tests to evaluate whether workers are “employees” or “independent contractors.” Of greatest importance: the level of control employers exercise over workers as measured by the means and manner of the work performed. Both the DOL and the IRS have instructive fact sheets on their websites addressing this issue.
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IADA ENDORSED KPA OFFERS INFO FOR DEALERS
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Ten Most frequently cited violations for automotive Dealers and Service Centers
10. Spray finishing using flammable liquids (especially if you have a collision center)
• Keep on top of the new 6H rule from EPA.
• Watch for airflow, and ensure proper airflow in the workplace. Make sure air filters are changed out as necessary.
• Ensure that all flammable liquids are kept away from ignition sources, anything from electric heater to electrical outlets near the floor.
• Paint room burms (between the paint room and any other area) need to be exactly four inches high.
9. Medical Services and First Aid
• Have emergency services available within 3 - 4 minutes.
• Provide first aid equipment (ten items in ANSI standard) available in most first aid kits.
• Most dealerships are better off if they don’t require employees to be trained on first aid
• Most dealerships don’t need a bloodborne pathogens program.
• Take this test to find out if you need one:
http://www.kpaonline.com/ehs/osha/bloodborne-pathogens.html
8. Exit Routs and Emergency Action Plans
• Often more expensive violations because they are usually cited as serious violations.
• Emergency Action Plans must be written and available on premise.
7. Powered Industrial Trucks
• Training must be on schedule and records available onsite.
• Operator training
• Classroom training
Inspections: Conducted before each use.
Usage: We recommend certifying employee operators and issuing numbered keys only to those employees.
Missing equipment- don’t forget the seatbelt for ride-on forklifts
6. Portable Fire Extinguishers
• Available about every 20 to thirty feet, depending on your location and regulatory agencies in your jurisdiction. Make sure access is clear of obstructions.
• Make sure all mounted fire extinguishers are located in their mounts at all time.
• Signage should be prominent and in close proximity to the fire extinguisher
• Monthly inspections recorded on tag attached to fire extinguisher: look for green charge, and available
• Annual Certifications
• 6 year hydrostatic test on fire extinguishers (contract out with fire department)
5. Electrical Safety Requirements
• Anything that could be an ignition source or shock hazard for employees
• Openings: watch for cracked insulators and missing cover plates
• All cords need to have ground plugs and need to be in good condition, free of frays
• Circuit breaker panels need to have all openings covered. Make sure all breakers are properly labeled
• Never use extension cords as permanent wiring.
• Make sure that old style incandescent bulb drop lights have been replaced by LED lights or fluorescent style that are less likely to break or ignite if they fall.
4. General Duty Clause
• Anything that seems unsafe for employees. The workplace needs to be free of recognizable hazards. Common issues: covers missing off fans, space heaters, housekeeping issues.
3. Abrasive Wheel Machinery (Parts Grinder)
• Check condition of wheel: must be damage free.
• Tool rest must be in place and within 1/8 inch of grinding wheel
• Tongue guard must be in place and positioned within ¼ inch of grinding wheel.
• Make sure that all decommissioned grinders are removed from premise.
• Grinder must be securely mounted. Pedestal grinders must be mounted to the ground.
• Safety shield should be turned 180 degrees and located infront of the wheel.
• All pieces of the grinder that were installed by the manufacturer must be present and in working condition.
• Personal protective equipment must be worn while operating the grinder
2. Respiratory Protection
• Written respiratory protection program that is a document specific to your facility and available on premise.
• If an employee is allowed to wear a respirator, they must go through the process or file an Appendix C.
• If employees are required to wear a respirator, they must have a medical evaluation.
• Make sure all employees are trained to use the respirator
• Conduct fit testing and keep documentation
1.Hazard Communication
• Written program
• Chemical inventory of every chemical in the workplace that is used above and beyond what a normal person would use, including all chemicals in the service shop. Maintain records for thirty years.
• MSDS database
• All chemical containers must be properly labeled
• Employee training up to date and on record.
Watch the free recorded webinar for additional information about the list and recommendations for leadership at the facility to address root causes of these problems.
http://vimeopro.com/kpaonline/kpa-recorded-webinars/video/31214573
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