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Visit Our Website
www.IllinoisDealers.com
Join our mailing list!
Do you know of other member dealership employees who should be receiving the IADA Electronic Bulletins? Let us know! Send an email to Meghan Sander (msander@illinoisdealers.com), Director of Communication, with the contact information of people who should be on our distribution list.
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2015 IADA OFFICERS
Chairman
Dave Taylor
Taylor Chrysler Dodge & Jeep, Inc.
Bourbonnais
Vice Chairman
Sam Roberts
Roberts Motors, Inc.
Alton
Treasurer
Jack Schmitt
Jack Schmitt Chevrolet
O'Fallon
Secretary
Dan Roesch
Roesch Auto Group
Elmhurst
President
Peter Sander
IADA
Springfield
IADA Staff Contacts:
Ph# 1-800-252-8944
Pete Sander
President
Ext. 103
psander@illinoisdealers.com
Larry Doll
Legal
Ext. 105
ldoll@illinoisdealers.com
Mark Harting
Administrative Services
Ext. 110
mharting@illinoisdealers.com
Mike Healey
Member Services
Ext. 107
mhealey@illinoisdealers.com
Joe McMahon
Legislative
Ext. 113
jmcmahon@illinoisdealers.com
Meghan Sander
Member Communications
Ext. 109
msander@illinoisdealers.com
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Your
IADA
Partner
Moving Vehicle Registration Into The Future
(click logo for more details)
Upcoming Webinars
March 12th
Greg Criss
Effective Recall Handling - Fulfill the Responsibilities Without Killing Service Profits (12 PM CST)
Click here to register!
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March 19th
Kathryn Carlson
Understand the Red Flags Rule (12 PM CST)
Click here to register!
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March 11, 2015 Vol 2013, Issue 51
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SUNDAY CLOSING REPEAL UPDATE
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The Chicago Sun Times Editorial Board today published an article - Sunday auto sales good for consumers.
As reported previously Senator Jim Oberweis (R) Sugar Grove has introduced (3) variations of bills to repeal the Illinois Sunday Closing Law. Just this morning all three bills have been assigned to the Senate Transportation Committee. No hearing dates have been set as of today.
Senator Jim Oberweis has been contacting dealerships through a variety of emails, including lead-generating services, trying to find support for his legislative attempts to open dealerships on Sundays. Now he has also engaged in robo calling individuals throughout the state trying to engage support for his proposed legislation. As indicated above he has also generated several newspaper articles regarding his attempts to repeal the Sunday Closing Law.
All dealers should personally contact your State Senator's office and ask that they support the industry and vote against any repeal effort to eliminate the Sunday Closing Law. It is equally important for your employees to contact their State Senators regarding this issue as well!
Through IADA's Voter Voice over 900 emails have been sent generating 1,126 messages to Illinois Senators. Please make sure your dealership voice is heard along with your employees! Make those contacts today!
Click here for a list of Senators on the Senate Transportation Committee. Please click here to locate and contact your respective Senator. This link can also be found on IADA's website, www.illinoisdealers.com.
- SENATE BILL 1706 - Allows for the sale of vehicles by dealers on Sundays if the dealer is a person who observes a religious day of worship other than Sunday.
- SENATE BILL 1780 - Repeals the current Sunday Closing Law and allows dealerships to operate and sell vehicles on Sundays.
- SENATE BILL 1835 - Allows for the sale of motor vehicles by dealers for no more than 2 hours on Sundays.
It is important when talking to a Senator or newspaper that we stay on point - for a list of dealer & employee talking points please click here. |
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LEGAL REMINDER: BE SURE TO FILE TAX RETURNS FOR EXEMPT TRANSACTIONS
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Motor Vehicle dealers must file a sales tax return (Form ST-556 or Form ST-556-LSE) for each vehicle they sell or lease, including transactions that are not subject to tax. Pursuant to legislation signed into law in 2013, the Department of Revenue has begun to impose a penalty of $100 per return that is not filed by the statutory 20-day deadline. If you make a dealer trade, sell a vehicle to an exempt purchaser, or conduct any other type of tax exempt transaction, you must still file form ST-556 or ST-556-LSE within 20 days. IADA has heard from dealers who have been assessed with substantial penalties for failure to file tax returns for tax-exempt transactions. Please make sure to timely file Form ST-556 or ST-556-LSE whenever you sell or lease a vehicle to a tax exempt customer.
You may file forms ST-556 and ST-556-LSE on CVR's website, click here, or on the Department of Revenue's website, click here.
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ILLINOIS CVR USER GROUP AND TITLE, TAX, & REGISTRATION SEMINARS
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Join IADA and CVR, the most experienced Title and Registration team in IL, and take advantage of this great chance to truly interact with the ILLINOIS EXPERTS!
3 Convenient Locations
Tuesday, April 14, 2015
Gateway Center
1 Gateway Drive
Collinsville, IL 62234
(Afternoon Only)
Wednesday, April 15, 2015
Doubletree by Hilton Bloomington
10 Brickyard Drive, Bloomington IL 61701
(Morning and Afternoon Sessions)
Thursday, April 16, 2015
Chicago Automobile Trade Association (CATA)
18W200 Butterfield Road
Oakbrook Terrace, IL 60181
(Morning and Afternoon Sessions)
Take advantage of this FREE opportunity to learn the following from IL's premier provider of Electronic Title/Registration Services:
• Tips & tricks to process transactions most effectively
• Best practices from CVR, and your peers - other CVR users!
• How to best avoid state fines, assessments & service interruptions
• Proper inventory management
• Processing deals for other states!
• New transactions and interfaces that save you time and money!
• Avoiding title issues on incoming trades through NMVTIS inquiries
• Using CVR's support website
• New features of today's release
• The CVR Product Roadmap
Click here to register!
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LEGAL REMINDER: MOTOR VEHICLE ADVERTISING RULES
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IADA staff recently met with staff from the Illinois Attorney General's Office to discuss common motor vehicle advertising violations. A copy of the Illinois Motor Vehicle Advertising Rules and Related Statutes can be found here. Attorney General's Office staff advised that the most common violations include the following:
- Advertised Price. The Attorney General's Office reported that some dealers would not honor price offers that they e-mailed to customers because the customers did not qualify for rebates. Other dealers failed to honor prices quoted on lead generating services or honored the price only if the customer agreed to purchase an additional option package. These practices violate Section 475.310 of the advertising rules.
- Free Gifts. Section 475.590 prohibits dealership offers of a free gift in connection with the sale or lease of a motor vehicle. This ban includes, but is not limited to, offering a no-cost lease to a person who purchases a vehicle, offering a television to anyone who purchases a vehicle, or offering a free third-party warranty to a vehicle customer. A free gift is permissible only if it is offered as part of a manufacturer program or a manufacturer-approved advertising association program.
- Coupons. Section 2J.1 of the Consumer Fraud and Deceptive Business Practices Act prohibits the use of coupons in conjunction with a vehicle purchase.
- Advertising to Bankrupts. The Loan Advertising to Bankrupts Act (815 ILCS 185/0.01 et seq.) provides that an advertisement may not include a statement or implication that an extension of credit will be made to a person who has been adjudged to be bankrupt. Attorney General staff indicated that it has seen a number of direct mail pieces that violate the Act.
- Sale price. Advertisement of a "sale" when the dealer has not reduced the price of its vehicles is a violation of Section 475.370 of the advertising rules.
- Limited Rebates. Section 475.590 of the advertising rules prohibits deducting a rebate form the final price of a vehicle if the rebate is not available to all customers. Instead, a limited rebate must be separately stated.
- Book value. If you offer a price on a used vehicle that refers to "book value" the offer must be from the current regional book and must clearly and conspicuously state the book that is being used. An offer that refers to book value must also include, in at least 10-point type, the following statement: "The value of used vehicles varies with mileage, usage and condition. Book values should be considered estimates only."
- Failure to disclose vehicle damage. Although it is a transactional violation rather than an advertising violation, the Attorney General's staff stated that it has written up dealers who had vehicle history reports showing a history of damage to used vehicles, but failed to disclose the damage to customers. Failure to disclose damage that a dealer has actual knowledge of is an unfair and deceptive practice in violation of Section 2 of the Consumer Fraud and Deceptive Business Practices Act.
Once the Attorney General's starts looking at advertising violations, it may turn up transactional violations as well. Please take a few moments to review the Illinois Motor Vehicle Advertising Rules and Related Statutes to make sure that your advertisements are compliant. |
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FEDERATED INSURANCE: HR QUESTION OF THE MONTH
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HR QUESTION OF THE MONTH: Can you pro-rate pay for an exempt employee, who worked a partial week upon separation?
Question: We have an exempt employee that separated in the middle of a workweek. We prorated his salary that week to reflect only the days he worked. He is coming back now stating that he had worked 40 hours that week before he left. Does that have any bearing on the pay, or are we ok with leaving it as is?
Response: Exempt employees generally must be paid their full weekly salary for all workweeks in which they perform any work. There are, however, certain limitation exceptions to this rule. Specifically, if an exempt employee starts or ends employment mid-workweek, the employer may prorate the employee's salary accordingly. As for calculating the deduction, the Fair Labor Standards Act (FLSA) does not mandate one specific method for prorating an exempt employee's salary in situations where deductions are permitted. Rather, 29 C.F.R. § 541.602(c) says that an employer may "use the hourly or daily equivalent of the employee's full weekly salary or any other amount proportional to the time actually missed by the employee." Thus, there are a number of methods the employer may utilize. To that end, it is certainly permissible for an employer to calculate a day rate and then multiply by the actual number of days worked, regardless of the number of hours actually worked. In other words, the number of hours do not have any bearing on the pay if the method you used to prorate the employee's salary was the daily (rather than hourly) equivalent of the employee's full weekly salary. For the full text of the statute, please click here. |
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2015 DEALERSHIP WORKFORCE STUDY OPEN FOR PARTICIPATION
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The fourth annual NADA Dealership Workforce Study (DWS) is now open for participation at www.nadaworkforcestudy.com. Designed to help dealers address their number-one challenge-attracting and keeping the best employees-the DWS collects data on compensation, employee benefits, retention and turnover and work schedules and hours of operation, and reports on these as well as on demographic issues such as the gender and generational gaps in the dealership workforce.
Participation, which involves completing a survey and uploading payroll data, is free and open only to NADA and ATD members. Participants receive two complimentary reports-a customized report comparing their own dealership's data against aggregated data from peers in their region and the nation and an overall analysis of the industry and data for each region of the U.S.
I urge all NADA and ATD directors to enroll in the DWS, and request ATAEs to strongly encourage their dealers to participate. The greater the participation, the more valid the data, and the more useful to dealers. Go to www.nadaworkforcestudy.com now!
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