2016 GNYADA Membership Directory

HOT TOPICS

2016

MEMBERSHIP

DIRECTORY

termination of employment, and identify a person at the dealership responsible for social media and whom an

employee can consult about the Social Media Policy or a prospective posting, prior to their posting it. However,

you need to be careful that your Social Media Policy does not violate federal labor laws by prohibiting “concerted

activities” by employees such as discussing job terms and conditions. The National Labor Relations Board (NLRB)

struck down a Social Media Policy in October 2012 that contained unqualified prohibitions on making disparaging

comments and restricting all communication with the media as violating Section 7 of the National Labor Relations

Act, the section that protects employees’rights to engage in concerted activities. Froman employment perspective,

you should consider how your Social Media Policy handles employees’ negative posts or, more importantly, the

leak of sensitive information. Employers should consider having procedures in place to investigate and address

potentially damaging posts. While certain laws, e.g. the National Labor Relations Act, may protect employees for

negative comments on the Internet, not all employee posts are protected. Employers should be prepared to act on

those that are not – particularly if the posts contain confidential information.

Sweepstakes

Sweepstakes or “games of chance”

contests present additional challenges

and are regulated principally by state

laws. In general, a sweepstakes

must give consumers the right

to enter without making a

purchase such as by mailing in a

postcard. Some states (e.g., New

York and Florida) require bonding for certain

consumer sweepstakes. Make sure the rules are clear about

the prizes; ways to enter; the duration of the sweepstakes; when and

how the winners will be determined; and name the dealership as the sponsor of the

sweepstakes. Disclose the odds of winning, or state the odds depend on the number of entries

received. IRS tax reporting is required for certain winners depending on the value of the prizes. Consider getting

advice from a competent attorney or agency familiar with the laws of the states where the sweepstakes or contest

promotion will be conducted. For example, Florida requires a state filing along with a bond in certain situations

for any consumer sweepstakes offering prizes totaling more than $5,000, and advertisements must contain the

full material rules for the sweepstakes.

Information provided Courtesy of Dealertrack Technologies 516.547.2242;