Here are two situations dealers sometimes face. What do you think about the suggested easy solutions? Situation 1: You hire a sales manager. He wants a monthly income guarantee for three months to develop the business. You are concerned because you want to protect against a claim he has a minimum ninety days employment that
Do I need to Pay Overtime to my Service Advisors?
You may have seen a case from the 9th Circuit Court of Appeals that service writers are not exempt from overtime requirements under the “salesman” exemption available to auto dealers. What does that mean for Virginia dealers? The 4th Circuit that covers Virginia has taken the opposite position that the “salesman” exemption applies to service writers.
The Importance of Your Information Safeguards Program
Do you think that adoption of an Information Safeguards Program in your dealership is just a box to check to satisfy the FTC? Do you see it as an intrusion by the FTC to benefit only your customers? Do you see it as just another unfunded federal mandate? Think about the following situation. You fire
The FTC’s Shot Across the Bow
On March 26, 2015, the Federal Trade Commission had a major press conference to announce six new motor vehicle sales cases. The FTC took the occasion for a press splash about a campaign it dubbed “Operation Ruse Control”. The FTC claimed to be working with 32 law enforcement “partners”, in a “nationwide and cross-border crackdown
Employment Practices: Q & A
As in many car business matters, answers to questions personnel may have about employment matters may not be easy. Here are questions whose answers may surprise you. You can find the answers HERE. The National Labor Relations Board enforces the National Labor Relations Act that regulates relations between employers and unions. My dealership is not
Employment Practices: Q & A – Answer Sheet
Answer 1: False. The purpose of the NLRB is not just to regulate the relationship between employers and unions. The NLRB has been increasingly active in taking action against non-union employers, it says, to protect the ability of employees to act together to try to improve their pay and working conditions, with or without a
The CFPB and You
Dealers are correctly concerned about the Consumer Financial Protection Bureau. Formed in reaction to the most recent financial downturn, the Bureau gives consumer advocates license to pursue many restrictions on financial businesses they have eyed for years. The CFPB is insulated from Congressional oversight, and it is using its unprecedented powers to remake much of
Reporting a Suspicious Cash Transaction
Here is a situation that arises from time to time: your dealership is selling a car to a customer who wishes to pay $8,000.00 in cash. The customer has said things that have raised the suspicions of the salesperson and the sales manager about the source of the cash. Question: The customer is not giving
ERISA Compliance is not an option…it is the Law
At any given time, any given employer may be singled out for a civil investigation by the Department of Labor! These audits aim to ensure that employee benefits plans are in compliance. With all of the attention being given to Healthcare Reform, have you overlooked one area of compliance that’s more important than ever? We’re
Cash Reporting Compliance: Have A System
Don’t think that IRS employees are busy looking for lost emails. Agents are in the field, auditing. And car dealers are regular targets of audits – particularly of cash reporting. Every dealer should know about filing Internal Revenue Service Form 8300. That form is due when the dealership receives cash or cash equivalents of more