GNYADA February 2017 Newsletter

Wages Can’t Be Withheld to Cover Losses 5

The GNYADA Dealer Hotline is occasionally asked if a dealer may deduct from an employee's wages, to cover property or equipment damage caused by the employee. (For example, if an employee damages a vehicle due to their own irresponsible act, such as speeding.) The answer is: No. Deductions cannot be made from a worker’s wages unless it is required by law, such as child support

payments; or unless the employee has expressly authorized a deduction to cover services like health clubs or daycare centers. According to the New York State Department of Labor’s website: “… if an employee takes or damages property belonging to the employer, the employer may not recoup the value of that property by withholding all or a portion of that employee's wages. The employer,

like any other party aggrieved by the negligent or criminal behavior of another, must pursue whatever remedies are available [under the] law. He may not simply confiscate wages due to his employee without a court order permitting him to do so.” For any questions, please call the Association at 718.746.5900.

The Fight Against Unlawful Brokering and Leasing Companies Continues Dealers and legislators meet to discuss the escalating issue 6

On January 19, GNYADA coordinated a meeting between franchised new car dealers and local legislators — including the sponsors of the Broker Bill — to develop an action plan against the growing threat that unlawful leasing and brokering companies pose to dealerships, their employees, and consumers. The meeting was attended by Senator Martin J. Golden, Assemblyman Peter Abbate Jr. and Assemblyman Michael Cusick, as well as representatives from Senator Andrew Lanza’s and Assemblywoman Nicole Malliotakis’ offices, and representatives from all Staten Island franchised new car dealerships. Brokers are an issue for all of GNYADA’s members; however, on Staten Island, brokering and leasing companies outnumber franchised new car dealers 3 to 1. Throughout the meeting, legislators recognized the seriousness of the issue and pledged to work with the Association and dealers to enforce

current laws and craft new legislation that will further protect consumers and dealers. “We understand and want to help,” said Senator Golden. He, Assemblyman Abbate, and Assemblyman Cusick proposed the formation of a task force within the Attorney General’s Office to focus specifically on unlawful brokers. GNYADA is preparing a formal request for the creation and funding of this task force. In 2016, GNYADA worked with Assemblyman Abbate and Senator Golden to pass legislation that increased penalties on brokers who violate the laws requiring them to hold a $75,000 bond, to be registered with the Secretary of State, and to provide advertising and contract disclosures alerting consumers that they are not franchised dealers.

Governor Cuomo signed that bill into law in October; however, very few brokers have registered, paid the bond, or are following the advertising/disclosure requirements. The Association is thankful for the legislators' attendance and support. GNYADA will continue working with dealers and State policymakers, to draft legislation that regulates the activity of brokers and leasing companies. In the coming weeks, GNYADA will continue working with the Legislature to tackle this ongoing problem.

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

The Newsletter • February 2017 3