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On the Move-April 1, 2015
2015 Legislative Report  

With less than two weeks left in the 2015 Legislative Session, MADA is well positioned for a successful Session. Most industry groups have griped about the difficulty passing legislation with a new Governor in place as the Senate and House have been cautious to step on toes. Despite this cautionary start to a new four year election cycle, MADA successfully worked with the new attorney general's office to pass spot delivery protections that will shield dealers against future class action law suits. Consumer attorneys have salivated for years over motor vehicle regulations that state a vehicle may not be delivered until all the agreements between the parties are finalized. They claim this prohibits spot deliveries. MADA holds the position that Maryland law does not have any prohibitions on spot delivery therefore the regulations are worthless. Nevertheless, MADA passed legislation despite heavy consumer opposition that will protect dealers in spot delivery transactions as long as they provide a required disclosure. This new disclosure requirement will go into effect on October 1st, so MADA will hold numerous educational seminars in the coming months to ensure dealers comply with the law to best protect themselves.

 

Another less direct piece of legislation that was negotiated by MADA involves extended warranties. Legislation that is nearing completion will exempt extended warranties from regulation by the Maryland Insurance Administration. Therefore, this will clear up any gray area that may require a dealer employee to obtain an insurance license to sell extended warranties. Furthermore, the legislation prohibits deceptive and/or false advertising to bait consumers into fraudulent extended warranty products.

MADA and American Fidelity Host Free Health Care Reform Seminar  
Please join us for an important complimentary health care seminar on Wednesday, April 15, 2015.  The seminar will be presented by Kelli Personette, an expert in health care reform compliance with American Fidelity Assurance, a MADA recommended provider.

On February 10th the Internal Revenue Service (IRS) released long awaited final regulations implementing the Employer Shared Responsibility provision under the Health Care Reform Act.

This seminar, designed specifically for auto dealers and their management staff, will review the general rules, describe the changes and key clarifications provided by the final regulations, and highlight some of the questions that remain unanswered. More specifically, the seminar will:
  • Describe the Health Care Reform provision impacting employers that require action in 2015;
  • Discuss the 2016 reporting requirements and review the templates;
  • Analyze how the rules apply to an employer's current staffing practices and could impact the structure of their workforce going forward;
  • Identify the employer's health plans and administrative practices that may need to be revised;
  • Create an action plan for organizing key compliance activities.
Date: Wednesday, April 15, 2015

Time: 9:30 am - 11:30 am

Location: Turf Valley Resort,
2700 Turf Valley Road
Ellicott City, MD

Cost: Complimentary (MADA-Members Only!)

Space is limited!  RSVP today!
Download and return the Registration Form to reserve your spot!
Join Us for MADA's Summer Business Convention!
Convention registration materials will be available in the next two weeks for MADA's 2015 Summer Business Convention in Hershey, PA!  Convention dates are June 28-July 1.  We look forward to sharing all that Hershey has to offer: from the thrilling rides at HersheyPark; to the luxuries of The Hotel Hershey, one of America's finest historic hotels; and the world-famous chocolate treatments at The Chocolate Spa!  
Are Service Writers Exempt Under the FLSA?
Whether Auto Dealer Service Writers (or Service Advisors) are exempt from federal and state overtime pay requirements has been an issue for years. The U.S. Department of Labor ("DOL") has flip-flopped on the issue since the exemption for "any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles" was written into the Fair Labor Standards Act ("FLSA") in 1966. The DOL's latest position was set forth in 2011 when it issued a Final Rule amending the "salesman, partsman, mechanic" exemption that did not include Service Writers employed at a retail dealership as exempt. This was in contradiction to the DOL's action in 2008, when it issued a Notice of Proposed Rulemaking in which it stated that it considered Service Writers to be exempt.

To read the rest of this article, download the full PDF version.  This article is provided courtesy of Mark J. Swerdlin with Shawe Rosenthal, LLP.   
MADAF Scholarship Deadline Extended

The deadline for the MADAF Scholarship application has been extended to Friday, April 17th.   Please be sure that any applications are dated and mailed prior to this date.

Don't Forget to Participate in NADA's Dealership Workforce Study!

The fourth annual NADA Dealership Workforce Study (DWS) is now open for participation at www.nadaworkforcestudy.com. This study is designed to help dealers attract and keep 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:

  • Customized report comparing your dealership's data against aggregated data from peers in the region and the nation
  • Overall analysis of the industry and data for each region of the U.S.

All NADA and ATD members are strongly encouraged to participate. The greater the participation, the more valid the data, and the more useful to dealers.

Welcome New Associate Member!
American Guardian Warranty Services, Inc. Providing and administering vehicle service contracts.  4450 Weaver Parkway, Suite 200, Warrenville, IL 60555.  Deborah Cebold, Marketing Manager, 800.579.2233x4133 or email: dcebold@agwsinc.com.  Chuck Hobbs, Asst. VP of Sales, 607.731.3152 or email: chobbs@agwsinc.com.
Maryland Automobile Dealers Association
7 State Circle, Suite 301
Annapolis, MD 21401
(800) 526.7423 (Toll-free)
(410) 269.1549 (Fax)

www.mdauto.org

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In This Issue
Legislative Report
Health Care Reform Seminar
Join us in June at Hershey!
Service Writers Exemption?
Scholarship Deadline Extended
NADA Dealership Workforce Study
Welcome New Associate Member
Electronic Enclosures

MADA Calendar

April 15, 2015
- Health Care Reform Seminar, Turf Valley Resort, Ellicott City, MD


June 28-July 1, 2015 - MADA Summer Business Convention, Hershey, PA    
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