GNYADA December 2014 Newsletter

To read these stories and get the latest news online, visit the GNYADA website at www.gnyada.com

For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

GM President Dan Ammann to Keynote Press Breakfast 1

DEC 2014 Volume 24, Issue 8

The New York International Automobile Show is pleased to announce GM President Dan Ammann as keynote speaker for the Show’s Opening Press Breakfast on Wednesday, April 1, 2015, at the Jacob K. Javits Convention Center in Manhattan. The event attracts more than 800 media and OEM auto executives each year and is followed by two days of new vehicle introductions. charged with taking GM into a new era of vehicle design and technical innovation. Ammann is primarily responsible for the company’s regional operations around the world. He has stated in the media that his goal is to have a successful business driven by strong consumer demand that will result in more sales, jobs, and production in the United States. Ammann is part of the next generation of executives, led by CEO Mary Barra,

OBEBDPOWFOUJPOPSH

HIGHLIGHTS

New Study Discredits CFPB’s Fair Credit Testing page 2

Annual Payday Forms Due page 3

tions into a world-class organization. An industry outsider, Ammann joined GM in April 2010 as Vice President of Finance and Treasurer, coming from an investment banking career at Morgan Stanley. His first assignment was to manage GM’s initial public offering.

GNYADA Derails Legislation page 5

FTC Takes Action Against Two Auto Dealer Chains page 6

Previously, as Executive Vice President and CFO, he transformed GM’s finance opera-

Secure Your Surety Bonds page 8

The Newsletter is published by GNYADA, a not-for-profit organization representing franchised automobile dealers in the New York metro area. 18-10 Whitestone Expressway Whitestone, New York, 11357

Dealer Hotline 718.746.5900 www.gnyada.com

The Newsletter • December 2014 1

2 New Study Discredits CFPB’s Fair Credit Testing by Forrest McConnell, Chairman, NADA

A new study of more than 8.2 million auto loan contracts by the consulting firm Charles River Associates con- cluded that the proxy method used by the Consumer Financial Protection Bureau to measure for unintended dis- crimination in an auto lender’s portfo- lio is “conceptually flawed” and “inherently unreliable.” The peer-review study, Fair Lending: Implications for the Indirect Auto Finance Market , commissioned by the American Financial Services Association and released on November 19, found significant bias and high error rates. The CFPB, which issued its guidance in March 2013, has used a proxy method to support claims of unintend- ed discrimination against—and extract settlements from—auto lenders and to pressure auto lenders to change the way they compensate dealers for orig- inating finance contracts. The study found that the CFPB’s methodology frequently misidentified the background of consumers and overestimated differences in dealer reserve paid by different groups of Starting on December 31, 2014, the minimum wage increases to $8.75/hour. This is the second of three increases passed which are to be implemented over a three-year peri- od. On December 31, 2015 the mini- mum wage will rise to $9.00/hour. Overtime Rate Employees who receive overtime at a rate of one and a half times the mini- mum wage for hours worked over 40 will also need wage adjustments. The new rate will be $13.13/hour. 3

consumers. For example, the CFPB’s method overestimates African- American borrowers by 41 percent. The study also concluded that the CFPB’s examination of differences in dealer reserve at the portfolio level is meaningless because it fails to account for legitimate reasons for pricing differences at the retail level. Dealers have also offered up an optional program that addresses fair credit risks. Based on a fair credit risk mitigation model developed by the U.S. Department of Justice in 2007 to resolve fair credit investigations of two dealers, NADA released its com- prehensive Fair Credit Compliance Policy & Program in January 2014. count interest rates and ensures the discounts are for legitimate business reasons, like meeting a competing finance offer. Rather than require cost- ly and inaccurate statistical testing, the program controls for risk on the front end of the transaction. Many dealers, including large dealer groups, have implemented the program. When implemented, NADA’s program documents instances when dealers dis- Exempt Employees There are also increased new salary minimums required for employees to qualify for white-collar exemptions from overtime (executive or adminis- trative exemption). Beginning December 31, 2014, dealers must pay exempt executive and administrative employees a minimum salary of $656.26/week and starting on December 31, 2015 this rate increases to $675.00/week. Examples of employees who may qualify for the administrative or executive exemp-

Meanwhile, the CFPB has repeatedly failed to fully respond to questions from Congressional Democrats and Republicans urging disclosure of its testing methodology, which is lacking in the guidance. Based on this and Republicans and 56 Democrats – have cosponsored legislation in the House to rescind the CFPB’s 2013 guidance. The bill, H.R. 5403, co-sponsored by Reps. Marlin Stutzman (R-Ind.) and Ed Perlmutter (D-Colo.), also requires transparency and public input prior to the issuance of future CFPB guidance on auto lending. For more informa- tion, visit www.nada.org/cfpb . The federal government should consider promoting broad industry adoption of NADA’s fair credit pro- gram, which addresses fair credit risks at the retail level while preserving competition in the marketplace. GNYADA thanks Forrest McConnell, Chairman, NADA, for contributions to this article. other flaws, 146 members of Congress – which includes 90

NYS MinimumWage Increases to $8.75

tion include: General Manager, Controller, Sales Manager, or Service Manager. These new rates must be reflected in the 2015 Payday/Pay Rate notices required under the Wage Theft Prevention Act (see “Annual Payday Forms Due by February1, 2015”). GNYADA will be sending updates to your 14-in-one Labor Law Compliance Poster for Metro New York Area New Car Dealers as soon as they become available.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014

2

Annual Payday Forms Due by February 1, 2015 It’s time to prepare New York State’s mandated Annual Payday/Pay Rate Notices. Under current law, dealers are required to provide written notices describing wages to all employees other business groups around NYS to have the law amended. In June a bill line instructions, specific examples of completed forms for most dealership positions, and sample overtime exemptions that apply to some dealer- 4

was passed by both the New York Assembly and Senate that would eliminate this burdensome annual requirement. Earlier this week we were notified that our bill was trans- mitted to the Governor’s office for his signature. Unfortunately, even if the Governor signs it this week, the amended rules will not go into effect until 60 days after being signed into law. GNYADA Assistance Available The Association’s Guide to New York State Labor Law Employee Pay Rate and Payday Forms provides line-by- of the year provides employees with a bank of sick time that can then be used early in the calendar year due to illness, if necessary. Dealers must determine which of these options is best for their dealership and notify employees of their policy. Forms The Department of Consumer Affairs (DCA) has posted a number of forms relating to sick leave on their website. Dealers should be using the Employee Verification Regarding Authorized Use of Earned Sick Leave . This form includes a list of permissible uses of accrued sick leave and can be found at http://www.nyc.gov/html/dca/ downloads/pdf/EmployeeVerification RegardingAuthorizedUseofEarned SickLeave.pdf Dealers may want to use the Employee Notification of Intention to Use Earned Sick Leave when an

ship personnel. Sample completed forms along with blank forms can be found on GNYADA’s website at http://www.gnyada.com/dealers/ payforms/forms . If you have questions about complet- ing forms for your dealership employees, please call Sue Bieber at 718.746.5900 or email your questions to her at susan@gnyada.com .

(including those covered by collective bargaining agreements) no later than February 1, 2015. The requirement, as it stands, requires that every employee must receive the mandated form that includes the employer’s identification information, the employee’s regular rate of pay, overtime rate, regular payday and the frequency of pay.

GNYADA has been working with

NYC Paid Sick Leave End-of-Year Rules

5

New York City’s Paid Sick Leave Law offers three options for handling year-end unused sick leave. 1 Pay out up to 40 hours of unused earned sick time and frontload all 40 hours of sick leave on January 1; or 2 Frontload sick leave so that all employees start the new calendar year with 40 hours of sick leave; or 3 Carry over the difference between 40 hours and the amount of sick leave used in 2014. Dealers are not required to pay employees for unused accrued sick time nor are dealers required to per- mit employees to carry over unused sick time. New York City dealers are not required to provide more than 40 hours of sick leave in a benefits or calendar year to employees. Under Option 2, frontloading 40 hours of sick leave at the beginning

employee has scheduled time off for covered medical reasons. http://www.nyc.gov/html/dca/down- loads/pdf/EmployeeNotificationOf IntentionToUseEarnedSickLeave.pdf Finally, under the City rules, if both the dealer and the employee agree, dealers may allow an employee to make-up work time missed due to ill- ness. http://www.nyc.gov/html/dca/ downloads/pdf/EmployeeRequestTo MakeUpMissedWork.pdf Additional information about New York City’s Paid Sick Leave Law can be found at http://www.nyc.gov/ html/dca/html/law/PaidSickLeave_ EmployersEnglish.shtml Call Sue Bieber at 718.746.5900 or email her at susan@gnyada.com if you have questions about New York City paid sick leave.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014 3

6 New Yorker Named as NADA Chairman

“It is a true honor to serve this indus- try and this board. This is an exciting time for the auto industry and for dealers across the country,” Fox said. “We will continue to advocate strong- ly for dealers and the franchise sys- tem, which is the best and most effi- cient model for consumers, dealers, and manufacturers alike.” Fox currently is a partner in Fox Dealerships, which sells Chevrolet, Chrysler, Dodge, Honda, Jeep, Ram, Subaru, and Toyota brand vehicles in Auburn, NY and Phoenix, NY. As mentioned in last month’s GNYADA Newsletter, Bill Fox will join another New Yorker on NADA’s Executive Committee, Immediate The decision applies to employees who have already been granted access to the employer’s email sys- tem in the course of their work. Employers are not required to pro- vide employees with access to their email system. Employers may monitor their com- puters and email systems for legiti- mate management reasons, such as maintaining productivity and pre- venting employees from using email to harass others or engage in any other activity that could give rise to employer liability. Employers may notify employees that they reserve the right to moni- tor and review all communications sent from or received on its email systems, and that employees do not

Upstate New Yorker Bill Fox has been named Chair of the National Automobile Dealers Association (NADA) for 2015. Fox, who represents New York’s franchised new car dealers on the NADA Board of Directors, will assume the position of Chair and CEO at the 2015 NADA Convention & Expo in January. “We are thrilled to have a fellow New Yorker as chairman of NADA and are looking forward to working with Bill in the year ahead on a raft of important measures to help defend and support dealers in this state and across the country,” said Bob Vail, GNYADA Chair. For the past seven years, the National Labor Relations Board has taken the position that employees do not have the right to use their employer’s email systems for purposes of union organ- izing or other activities such as dis- cussing their wages, benefits, and other terms and conditions of employment (“Section 7 Activities”). On December 11, 2014, the Board reversed that position and decided that employees who have access to email at work are permitted to use their employer’s email systems during nonworking hours to send emails regarding union organizing and other Section 7 Activities. This pertains to such activities in both unionized and non-unionized workplaces. In the wake of this decision, both unionized and non-unionized employers should keep in mind the following:

Past Chair of GNYADA, Neale Kuperman. Neale is from Rockland County and was elected to serve as NADA’s Treasurer. NADA represents 16,000 new car and truck dealerships, with about 32,000 domestic and international franchises.

7 Employees May Use Dealership Email for Union Organizing

have an expectation of privacy with emails and attachments.

n

Employers should narrowly tailor their electronic communications policies to protect legitimate busi- ness interests and ensure that there is no express prohibition on utiliz- ing the email system for union- related purposes. Employers must ensure the even- handed application of its electronic communications policies. Employers that permit employees to send other non-work emails but restrict union-related emails will likely be found to violate the National Labor Relations Act. The Association thanks Jim McGrath, III, Esq., Putney, Twombly, Hall & Hirson for this article. n n

n

n

n

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014

4

8 GNYADA Derails Legislation Harmful to Members

Over the last several months, we have seen a large uptick in legislative and regulatory activity in the DeBlasio administration and in the City Council that directly affects new car dealer operations. GNYADA will continue to keep an eye on legislative efforts that have the potential to harm your business, and, if necessary, will inform dealers when they need to voice their concerns to individual Council Members. As we have reported to you previous- ly – GNYADA was able to convince the NYC Department of Consumer Affairs (DCA) to extend the deadline for NYC dealers to answer the sub- poenas dealers received in regards to selling used vehicles with open recalls. The deadline to answer the subpoenas is now February 2, 2015. GNYADA continues to work with the DCA to find an acceptable solution that will not interfere with a dealer- ship’s ability to sell used cars in NYC. We hope that we will be able to reach an agreement with the DCA before the February 5th deadline. DCA Subpoena Deadline Moved to February 2, 2015

additional products or services after the sale, such as extended warranties, new tires or any other post-sale item. GNYADA President Mark Schienberg testified against both these bills at an October 28 City Council hearing. Following the hear- ings the Association continued lobby- ing the Council to hold off on taking any further action. the ability of dealers to sell their used vehicles with open recalls – no matter how insignificant the subject of the recall – would cause an undue burden on auto dealers. The Council also understands that NHTSA’s defi- nition of “safety recall” is overbroad, that the new recall database set up by NHTSA is not updated in real time, and that the information can be incomplete and unreliable. GNYADA will continue its efforts working with the City Council in order to prevent legislation that would be detrimental to GNYADA members and its customers who are looking for affordable used cars. The Council and its staff now under- stand that any law that would delay

Due to GNYADA’s lobbying efforts, the Association has successfully stopped two New York City Council bills that were on the fast-track to pass the City Council before the end of 2014. These bills have been removed from consideration during this year’s legislative session though it’s expected they will be on the Council’s agenda again in 2015. The first bill (no. 518) would require a dealer to repair any defect or imper- fection on a used vehicle that has been recalled by a manufacturer, regardless of the reason for that recall, before the dealer can sell that used vehicle. The second bill (no. 178) GNYADA opposes would require dealers to dis- play a stamp, tag, or label that states the total selling price for a used vehi- cle, including administrative, service, or other fees that will be charged by a dealer. GNYADA’s objection to 178 is that the bill is too broad and will have negative unintended consequences if passed. Essentially, the bill would make it illegal for dealers to offer

In-Transit Permit Rules

9

In-Transit Permits are issued by dealerships to customers who are registering their vehicle in a state other than New York. Permits cannot be issued to a vehicle that is being transported and registered within New York State.

Some important facts: In-Transit Permits are only valid for 30 days, including the date of issue; The form must show both the issue date and the expiration date; Both Part 1 and Part 2 (front and back) of the form must be completed; Make two copies of the completed form – one for your dealership records and an extra for DMV; and retain the tear strip on the right side of the permit in the customer’s deal jacket. n n n n

It is important to note that Massachusetts does not recognize in-transit permits and vehicles may not be driven on their roads with such a permit.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014 5

FTC Takes Action Against Two Auto Dealer Chains 10

offer, such as a requirement to make a substantial down payment… [and] failing to make credit disclosures clearly and conspicuously, as required by the TILA.” These cases represent the fourth set of advertising enforcement actions brought by the FTC against auto dealers since 2012. New York Advertising Guidelines Based on the description of these ads, they would violate New York’s Advertising Guidelines for Auto Dealers. Dealers are cautioned to ensure that all advertising complies with Federal, State and local Advertising Guidelines, even when a third party prepares the content for you, and to be sure that any ad agency promises, in writing, to stand behind their work. The New York Advertising Guidelines can be found at http://www.gnyada.com/dealers/ services/overview. GNYADA thanks NADA Regulatory Affairs for this article. Under both state and federal law, consumers have a “private right of action” for damages and attorney’s fees. State and federal laws also pro- vide for substantial penalties for vio- lations. Prior to offering credit repair services or products, dealers should consult their attorney. This item is intended as information only; for specific advice, contact your attorney. This article was provided by Stuart A. Rosenthal, Esq. He can be reached at Stuart@Rosenthal.Lawyer or 914.205.7700 to answer any questions.

entered into a consent agreement, and the Justice Department is seeking remedies by filing a complaint in federal district court. With regard to the dealer chain that settled the charges, the FTC states: “the dealerships and advertising com- pany violated the 2012 FTC adminis- trative order by frequently focusing on only a few attractive terms in their ads while hiding others in fine print, through distracting visuals, or with rapid-fire audio delivery. For exam- ple, some dealership ads promoted low monthly payments or attractive annual percentage rates and finance periods, while concealing other mate- rial items, such as low payments were for leases, not sales; major lim- its existed on who could qualify for discounts; and offers often included significant added costs.” With regard to the other dealer chain, the FTC states, in part, that it “allegedly misrepresented the costs of financing or leasing a vehicle by concealing important terms of the improve a consumer’s credit history, in return for a fee. Under that law, only certain types of nonprofits and licensed attorneys can charge or col- lect any fee in advance of performing the services. There are specific dis- closures and terms that must be included in credit repair contracts. Federal Law: The federal Credit Repair Organizations Act similarly prohibits advance fees and requires specific disclosures. It also requires a three-day cooling-off period (right of cancellation).

The Federal Trade Commission (FTC) announced on December 12, 2014, that it is taking action against two auto dealer chains for deceptive- ly advertising the cost of buying or leasing a car. These actions follow consent orders the FTC entered into with the same dealer chains in 2012 to resolve allegations that they engaged in deceptive advertising related to negative equity and failed to satisfy the disclosure requirements that apply to credit and/or lease ads containing “trigger terms.” Because the dealer chains agreed in those consent documents, the FTC is now seeking civil penalties in addi- tion to other forms of relief, such as the imposition of extensive compli- ance monitoring, compliance report- ing, and recordkeeping requirements. According to the FTC’s press release, one of the dealer chains has already agreed to settle the charges and, as part of the agreement, pay a civil penalty in the amount of $360,000. The other dealer chain has not The NYAG has taken the position that companies that sell credit repair products may violate state laws. The AG’s office is looking into the prac- tices of the credit repair industry. Credit Repair Organizations Act There are both state and federal laws and regulations that limit “credit repair organizations,” prescribing what they can do and say and requir- ing specific forms and disclosures. New York State Law: A credit repair business is one that performs or promises to provide a service to

11 AG Investigating Credit Repair Offers

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014

6

Can You Alter a Retail Certificate of Sale (MV-50)?

12

Well, it depends on which section is to be altered. Going back to ancient history – February 11, 1993, DMV changed its ruling and allowed dealers to submit Retail Certificates of Sale (MV-50s) containing minor alterations. However, DMV rules state that you may only put a single line through the incorrect information (and it must remain legible) and neatly write in the correct information. Vehicle Identification Number (VIN) Liens (if you have “L0” (meaning zero liens), you cannot write “NE” next to the zero to make it “L0NE”, or “Lien 1”) Odometer Reading Signature of purchaser(s) Date of sale Dealer-issued plate number n n n n n n

Registrations

Transfer plates

Renewals

Title processing

VIN searches

Low rates

CALL 718.747.0400

If you have any questions regarding the acceptance of an altered MV-50, please contact DMV-DIRECT at 718.747.0400.

IRS Form 8300 Can Now Be Filed Electronically

13

The IRS requires that all customers identified on a cash reporting Form 8300 (customers who paid for dealership purchases with more than $10,000 in cash) during 2014 be notified, in writing, of the form’s submission no later than January 31, 2015. The required notice must include the name, telephone number, and address of the dealership, along with the amount of cash received, and it must indicate that the information was reported to the IRS. Electronic Filing – Form 8300 The Financial Crimes Enforcement Network (FinCEN) announced that certain businesses, including car dealers, are able to electronically file Form 8300 using the Bank Secrecy Act (BSA) Electronic Filing (E-Filing) System. E-Filing is a free, web-based system that allows businesses to submit reports through a secure network. More information about Form 8300 E-Filing is available at http://www.fincen.gov/news _room/nr/html/20120919.html . To help you comply with these cash reporting requirements, here is a sample letter to customize to notify any of your customers who paid for their purchases with more than $10,000 in cash in 2014. Keep a copy of the letter on file for five (5) years from the date the form was filed.

Date

Dear Customer (insert name):

We are required by the Internal Revenue Service (IRS) to report all transactions involving payments of more than $10,000 in cash (26 USC 6060(I)). We filed Form 8300 with the IRS on (insert date), 2014, indicating that you paid us $(insert amount) in connection with your purchase of a (insert year, make, model, VIN).

Sincerely, (insert dealership name)

If you need additional information about cash reporting requirements, please call Susan Bieber at 718.746.5900 or susan@gnyada.com .

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014 7

Secure Your Surety Bonds Now

14

GNYADA offers the lowest bond rates in New York State – $300 for a two-year bond – which boils down to $150 a year. The Bonds are under- written by an A-rated insurance com- pany with a treasury limit of over $36 million dollars. So you are in good hands.

date will result in the suspension of your dealer license.

GNYADA doesn’t stop with just DMV required Surety Bonds; we can help with all your bond needs – ERISA Bonds, Permit Bonds for Construction, Game of Chance Bonds, Utility Bonds, and Second Hand Dealer Bonds. Ask us, we are here to help. GNYADA has a simple process to acquire any of your Bonds call or e- mail Jennifer Berman, Director of

As always, GNYADA bonds: Require no financials; Need no credit checks for you or your spouse; Offer an easy-to-complete application; Boast 24-hour turnaround on rush service; Come with free bond riders; Don’t require new applications when renewing; Guarantee the same rate for all GNYADA members. n n n n n n n

We have seen similar bonds listed for as much as $800 to $1,000 online.

Why You Shouldn’t Delay Vehicle & Traffic Law 415 requires all New York State dealers to have a current original, signed, surety bond on file with the DMV at all times. Failure to comply by the effective

Membership Services, at 718.746.5900, ext. 235 or jennifer@gnyada.com .

GNYADA Membership Renewals Are on Record Pace

15

Membership dues invoices were mailed a short time ago, and the response rate has been overwhelm- ing. If you have not already renewed your membership, please do so today. GNYADA is keenly aware of the issues that affect dealerships – issues that have a direct impact on your bot- tom line. Your membership allows the Association to have an important strategic presence in Albany and Washington. The passage this year of a new Franchise Bill is just one example of the important role the Association plays on behalf of dealers. The 20- plus amendments to the Franchise Law give dealers more say in how to run your business with the least amount of intrusion by the manufacturers.

Don’t miss out on all that member- ship has to offer. Renew your 2015 GNYADA membership today. If you renew by January 30 and pay by credit card, you can use our installment plan, which allows you to break up the payments into three equal installments. Call Jennifer at the association at 718.746.5900, ext. 235, if you have any questions about your member- ship or if you would like to renew over the phone with a credit card.

Every day, we assist dealers through a maze of regulations, expertly guid- ing you away from the pitfalls gener- ated by so many requirements. Current Data To get the most out of your member- ship and to assist and service dealers even better and faster than before, it is important that we have the most current contact information for your key staff members, including their email addresses, so we can keep them informed on important issues as well as upcoming courses and semi- nars that would be of interest. Please complete the attached form and fax it back to Jennifer Berman at 718.508.4772 or download the form from our website http://www. gnyada.com/dealers/member/ overview , fill it in, and email to Jennifer at jennifer@gnyada.com .

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014

8

Jaguar Land Rover’s New Export Policy

16

INCREASING THE BURDEN AND PENALTIES FOR DEALERS

equipment eligible under Section 179 small business expensing to $500,000 for eligible new and used equipment purchased in 2014. Without this bill, the maximum eligi- ble for Section 179 expensing in 2014 would have been $25,000. The bill also includes an extension of the 50 percent bonus depreciation deduction for new business equip- ment acquired and placed in service in 2014. In addition to these changes, there is an extension of the additional $8,000 in first-year depreciation for certain business vehicles purchased in 2014. New York Franchise Law New York law does not impose upon dealers the obligation to investigate consumers. JLRNA is prohibited from issuing any chargebacks in New York unless: it first provides written notice to the dealer; and provides an opportunity to protest (which you should immediately discuss with your legal counsel upon receiving notice). NY law merely requires a dealer to have exercised due diligence as long as the sale was made in good faith and the dealer did not know of the buyer’s intention to export the vehi- cle. Therefore under the law, a dealer is not obligated to perform the tasks JLRNA “strongly recommends” in its New Export Policy. Additionally, under NY law, a dealer is “presumed to have exercised good faith and due diligence” if it registers the vehicle and remits the appropriate sales tax. n n

Audits JLRNA has also notified its dealers that it will “audit every exported VIN against the previous policy in effect until November 23, 2014.” It’s important to note that there is a one- year limitation on audits in New York when they relate to warranty pay- ments or sales, advertising, or mar- keting incentive payments. The penalties under the New Export Policy include a $3,500 “Warranty Fee” and a “chargeback of Variable Marketing programs and incentives.” While JLRNA, and other luxury dis- tributors, are becoming increasingly vigilant in preventing the export of new vehicles from the U.S., their policies must comply with NY law and dealers should consult with their lawyer prior to accepting any charge- back or other penalty.

GNYADA thanks Richard Sox, Esq., of Bass, Sox, Mercer for this article.

President Obama has signed a measure that increases small-business expensing and bonus depreciation, which allows car and truck dealers and their customers to expense a larger portion of equipment purchas- es for 2014. Dealers and their cus- This provision may provide sub- stantial potential savings for a dealership's business customers, but they must purchase qualifying vehicles before Dec. 31, 2014. First, the bill contains a retroactive increase of the limit on business JLRNA’s New Export Policy ignores the new amended protec- tions provided by the New York Franchise Law. Recently, Jaguar Land Rover North America, LLC (JLRNA) issued a new export policy. This policy greatly increases the bur- den on dealers to investigate whether prospective customers intend to export the vehicle, and also greatly increases the sanctions on dealers in the event they are duped by cus- tomers who later ship them overseas. JLRNA establishes a series of severe chargebacks and penalties, based on volume of sales, and does not permit a dealer to appeal or explain why they should not be penalized. New York Franchise Law provides some significant protections to dealers from the chargebacks and penalties JLRNA seeks to impose . tomers must act quickly to take advantage of these tax benefits.

This article is provided for educational purposes only and should not be interpreted as legal advice.

17 President Extends Tax Savings

The Senate on December 16 approved a House-passed bill, H.R. 5771, to renew several expired tax provisions to benefit car and truck dealers and their customers. Dealers and their customers are encouraged to consult their tax advisors to determine the exact amount of their potential tax savings, which depends on their own particu- lar tax situation and the provisions described above.

GNYADA thanks NADA for this article.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014 9

NYC Right-to-Know Filings Due March 1st

18

To keep dealers in compliance with the New York City Community Right-to-Know Laws and Regulations, the Department of Environmental Protection (DEP) is holding a series of workshops on how to prepare and submit your dealership filing. The system allows you to file electroni- cally, attach Safety Data Sheets, and pay fees online. There will also be sessions to show you how to submit your Facility Inventory Form. All training will take place at the DEP, 59-17 Junction Blvd., Flushing, NY 11373 . Workshops will be held in the Cafeteria and the Facility sessions on the 10th floor.

Workshops Wed., Jan. 14 10:00 to 11:30am Wed., Jan. 21 10:00 to 11:30am Wed., Jan. 21 4:00 to 5:30pm Wed., Jan. 28 4:00 to 5:30pm

Facility Inventory Form Sessions Thurs., Jan, 22 10:00 to 3:00pm Tues., Jan 27 10:00 to 3:00pm Thurs., Jan 29 10:00 to 3:00pm Tues., Feb 3 10:00 to 3:00pm Thurs., Feb 5 10:00 to 3:00pm Tues., Feb 10 10:00 to 3:00pm Thurs., Feb 12 10:00 to 3:00pm Wed., Feb 18 10:00 to 3:00pm Tues., Feb. 24 10:00 to 3:00pm

You must file by March 1 to avoid potential fines to your dealership.

To reserve space in any of these trainings, send an email to edu@dep.nyc.gov or call 718.595.4659.

Dealers Help Area Auto Students Aim High

19

young people all across our area realize their full potential.

The Competition is designed to reward the best of a new generation of automotive technicians and encourage future generations to choose the automotive industry as a meaningful and worthwhile career path. The support provided by dealers across greater New York means that today's automotive students are better prepared and more qualified to join the workforce than ever before. The New York Automotive Technology Competition was con- ceived by GNYADA to raise the stan- dards of vocational education in our schools and push their curriculum to more rigorous standards to ensure automotive students master the skills they need to succeed as lifelong learners, workers, and citizens.

Our area’s best and brightest auto- motive high school students will descend on the Center for Automotive Education & Training on Jan. 7 & 8 to take part in the 25th Annual New York Regional Automotive Techn- ology Competition and a chance to represent GNYADA at the National

Finals at the New York International Automobile Show in April.

The New York Regionals and New York Finals (Feb 10) are made possible by GNYADA and local dealers who provide their time, expertise, and vehicles to help

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014

10

Why Training Is Critical

20

High Gross Sales Training: Gross profit: it is yours to keep or give away. Wednesday, January 21, 2015 Streamline Your Marketing Costs: Creating a Unified Marketing Message – Learn how to maximize your marketing spend to drive more customers to your store. Tuesday, January 27, 2015 Effective BDC Management Strategies: Essential techniques for coaching your BDC to deliver higher performance and better results. Thursday, January 15, 2015 To register for a seminar, contact Carole Rogner at 718.640.2012 or carole@gnyada.com report to work during severe weather, but then doesn’t open, employers must pay any employee who reports to work for at least four (4) hours (or the minimum number of hours in the shift, whichever is less) at the minimum wage (which rises to $8.75 per hour at the end of December). If the dealership opens and then closes early, hourly employees must be paid for the hours worked or four hours times the minimum wage, whichever is greater. If an employee decides to stay home, and the dealership is open for business, any time taken off due to the poor weather conditions is unpaid or may be taken as a vacation, sick, or personal day. n n

Internal: Frustration can have a detrimental impact on the dealership as a whole; motivation and effort decrease. External: Frustrated employees are more likely to voice their grievances, especially outside of the workplace. These people can poison your dealer- ship – and your brand. It makes the case for great training as a means of nurturing employee engagement and retention. To meet your training needs, GNYADA offers seminars on various topics. GNYADA’s seminars are developed by qualified experts and dealership professionals to meet your most pressing business needs. GNYADA January training offerings include: Salaried (Exempt) Employees An employee who is paid on a salaried basis and who is exempt from overtime should be paid the full amount of his or her salary if the dealership does not open. If the dealership is open and the salaried employee does not report to work, the employer may require the employee to take any accrued leave, or in this limited circum- stance, can deduct the full day’s salary from the employee’s pay. Salaried employees cannot be “docked” pay even if they only show up for a partial day. Hourly Employees If the dealership is closed, you do not have to pay employees for any part of the day if you told them not to show up. You can let employees use an accrued personal day. If the dealership tells employees to n n n n n

Zig Ziglar sent an important message when he said, "The only thing worse than training your employees and losing them is not training your employees and keeping them." Although many factors contribute to a negative employee culture (poor man- agement, lack of advancement oppor- tunity, low pay), how well people are trained to do their job can also con- tribute to employee satisfaction. It turns out, if people feel well prepared and well equipped to succeed in their role, it increases their morale. Dealerships select and hire people, but then underinvest in the amount of training needed to help employees do their best. The impact can be felt in two major ways: As dealers prepare for the possibility of severe winter weather (which can force some dealerships to close), one of the issues that arises is how to pay your employees for days that you might be closed during or following a severe weather emergency. Severe weather may require a dealer to decide not to open or it might interfere with employees’ ability to travel to work. Storms may interfere with driving, public transportation, and utility services (phones, electrici- ty, and heating and cooling). Below are some of the issues you need to be aware of when it comes to properly paying your employees. It is up to the employer to decide if the weather is severe enough to war- rant closing. Here are rules for paying employees when dealerships are affected by severe weather:

21 Snow Day? How to Pay Employees

Dealers with union contracts must abide by the policies in the CBA.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014 11

EMPLOYMENT CORNER

2015 Fuel Economy Guide Enclosed

22

GNYADA’s Employment Corner is a free recruiting and job placement service that lists qualified candidates for positions at dealerships. If you have a position to fill, call 718.640.2012 .

FILE #

POSITION

RESIDES IN

The United States Environmental Protection Agency (EPA) and the Department of Energy (DOE) require automobile dealers to prominently display the 2015 Fuel Economy Guide wherever new cars are offered for sale. Dealers must provide a copy of the Guide to customers upon request. Dealership staff should be trained on this compliance requirement. The Association is providing the enclosed Guide as part of our Dealer Services Program to help you comply with federal regula- tions. Additional copies of the current Guide may be downloaded at www.fueleconomy.gov and at http://fueleconomy.gov/m/ for mobile devices.

OFFICE

Biller

Forest Hills

800

Kew Gardens

801

Bookkeeper – Part Time

Brooklyn

802

Controller

Brooklyn

803

Receptionist/Greeter

Yonkers

804

SERVICE

Entry-Level Service Technician Astoria

805

Corona

806

Levittown

807

Manhattan

808

Queens Village

809

South Ozone Park

810

South Richmond Hill

811

Stamford, CT

812

Contact Us: 18-10 Whitestone Expressway | Whitestone, NY | 11357 Dealer Hotline: 800.245.4640 GNYADA Headquarters: 718.746.5900 E-Mail: assistance@gnyada.com DMV-DIRECT: 718.747.0400 GNYADA Insurance Brokerage, LLC: 718.746.5900 New York International Automobile Show: 718.746.5300 Center for Automotive Education and Training: 718.640.2000

The information contained in this newsletter may not be relied upon for the avoidance of tax penalties. Readers are urged to discuss any issues raised in this newsletter with their legal and tax professionals. Printed on FSC certified material. All original material except where noted. © GNYADA 2014

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2014

12

Made with FlippingBook - Online catalogs