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
FEBRUARY 2020 Volume 30, Issue 1
1 DMV Commissioner Addresses Action on Brokering
APR I L 1 0 - 1 9
GNYADA’s research has shown that few brokers have proven to the State that they have this financial security in place. GNYADA’s research has found that, in addition to brokers failing to secure bonds, a low percentage have registered to do business with DMV. The Association has also reviewed brokers’ compliance with the NYS Attorney General’s Advertising Guidelines, which shows that virtually every broker’s advertising is violating those guidelines. GNYADA commends Commissioner Schroeder’s quick response to address these problems after he became aware of the Association’s findings.
At a recent meeting, DMV Commissioner Mark Schroeder notified GNYADA and NYSADA representatives that, effective immediately, the DMV will require bro- kers to prove that they have purchased a $100,000 surety bond when they register. Presently, less than 10% of brokers in the State have secured bonds. GNYADA has been tracking brokers’ compliance with numerous State laws. These laws were enacted over the past several years thanks to the Association’s efforts in Albany. For example, under a state law GNYADA worked to enact, brokers have been required to purchase a surety bond. But
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MON-SAT 10AM-10PM • SUN 10AM-7PM JAVITS CENTER • AUTOSHOWNY.COM
FOR SECURITY PURPOSES, NO BACKPACKS ALLOWED. RANDOM SECURITY AND BAG CHECKS. AN ACTIVITY OF THE GREATER NEW YORK AUTOMOBILE DEALERS ASSOCIATION.
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 HIGHLIGHTS GNYADA Asks AG for Clarity on Credit Card Surcharges page 2 NY Franchise Bill Protects Downstate Dealer page 3 Dealer Group Sued for Military Lending Act Violations page 4
2 Association President Appointed to EV Task Force
GNYADA President Mark Schienberg has been appointed to Governor Cuomo’s Electric Vehicles Task Force. The task force is comprised of other groups, including deal-
and consumer charging stations while ensuring New York’s franchise dealers are considered in any steps taken by the task force. Mr. Schienberg is very appreciative of the opportunity to help create opportu- nities to grow electric vehicle sales in New York State. The entire task force has been invited to hold its next meeting at the Javits Center during the New York Auto Show in April. The task force will have the chance to view numerous new electric vehicles from a variety of manufacturers and participate in ride and drives during the Show.
er associations, manufacturers, environ- mental groups, and public utilities. Its goal is to find ways to increase EV sales and improve EV infrastructure. Mr. Schienberg will continue to advocate for more cash rebate funding for car sales
Dealer Hotline 718.746.5900
Greater New York Automobile Dealers Association • www.gnyada.com
GNYADA Asks AG for Clarity on Credit Card Surcharges
The Association met with the Attorney General’s Office seeking clarification on credit card surcharges. GNYADA asked about a compliance letter the Attorney General’s Office distributed in 2018 to businesses that addresses the New York Credit Card Surcharge Law and a NYS Court of Appeals decision that prohibits businesses from adding surcharges to credit card purchases. The letter said that “merchants may not simply post that they are adding a surcharge or additional fee, or that there will be a percentage fee added to the bill.” GNYADA explained that it is virtually impossible for franchised new car dealers to post a sign in their business that lists the price for the hundreds, if not thousands, of various parts and labor products and services. The Attorney General’s Office agreed to review a GNYADA proposal for how dealers can satisfy the disclosure requirements given their unique circumstances. In early February, GNYADA followed up with the Attorney General’s Office and will keep dealers informed when new information becomes available.
Best Practices In the meantime, the Association suggests that dealers should not post a general sign informing customers that a certain percentage surcharge has been added to the price. Dealers may continue to offer a discount for cash payments.
NYC Eliminates Paper Police Book for Dealers
Since the inception of VERIFI, there has been some uncertainty and confusion regarding whether or not dealers must keep paper copies of the Book of Registry/Police Book and the Plate Log. VERIFI maintains electronic copies of both the Book of Registry and Plate Log, which means dealers do not have to maintain paper versions of these two books. However, until recently, it was a different story in NYC. GNYADA lobbied New York City for over a year to change the City’s requirement for dealers to maintain a
paper book of registry and adopt to an electronic format. Earlier this year, NYC agreed and made their rules consistent with State DMV rules by eliminating print Police Book Requirements. However, all dealers will need paper versions of the Book of Registry and the Plate Log for audits relating to vehicle transactions prior to the roll-out of VERIFI. Per DMV regulations, GNYADA’s Dealer Record Retention Chart lists the retention periods for Books of Registry for at least 3 years and the Plate Log for at least 5 years.
2 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020
NY Franchise Bill Protects Downstate Dealer
goals. In that case, Beck Chevrolet Co., Inc. v. General Motors LLC , the court found that GM used an arbitrary sales standard that also ignored local market factors. The Beck case was also handled by Mr. McRory. Both of these decisions serve as the foundation for future legal arguments that factory sales standards and incentive program objectives cannot ignore the severely disruptive force of brokering activity. GNYADA has been working with other stakeholders on new legislative efforts to protect consumers from unscrupulous brokers and to protect franchise dealers’ businesses. See cover story for more information on what DMV is doing regulate brokers.
Score a victory for New York Franchise Law! A downstate dealer recently won a franchise law case that could have major implications on how automobile brokering affects manufacturers’ performance metrics. The case challenged the legality of FCA’s Minimum Sales Responsibility (MSR) sales performance standard primarily on key Franchise Law protections GNYADA lobbied for in the State Legislature in 2008. The case was tried by attorneys Russell McRory and Michael McMahan of Arent Fox, GNYADAAllied Members. The case was brought before a DMV administrative law judge who found that the MSR did not take into account the impact of local sales conditions, which were severely disrupted by brokering, and that the
factory unfairly distributed incentive payments as a result of those sales. The judge also made another, extraordinary finding: that the manufacturer failed to act in “good faith” by facilitating car sales through automobile brokers, a practice that is clearly prohibited by New York’s Franchise Law. The main charges against the manufacturer – that its performance standard was unreasonable and that it acted in bad faith – were based on dealer rights GNYADA lobbied hard to add to the Franchised Motor Vehicle Dealer Act eleven years ago. In 2016, another GNYADA dealer sued its manufacturer for threatening to not renew its franchise agreement for failure to meet unreasonable sales
6 New Broker Bill Starting to Move DEALER ADVOCACY NEEDED IN ALBANY
A new Broker Bill will be introduced in the State Legislature in the coming weeks. This new Broker Bill has been GNYADA’s number one legislative agenda item for several years. The bill will set new standards for the auto brokering industry, restoring fairness in a market that has been inundated by hundreds of brokers that operate illegally, unregistered, and in the shadows without any Government oversight. Last year, working with UAW Local 259 and Teamsters Local 202, GNYADA was able to secure over 80 legislative sponsors for a bill. While that legislation saw some movement in the Senate, neither the Assembly nor Senate brought the bill to the floor for a full vote. While GNYADA has been successful in passing several bills to ensure brokers advertise clearly and fairly, requiring them to register with the State, and to post a bond, very few broker businesses have followed these basic requirements.
Dealer Lobby Day – March 24th in Albany
Join GNYADA for Dealer Lobby Day in Albany and speak directly to legislators about passing the Broker Bill and many other important franchise law issues. See the enclosed flyer. To register for Dealer Day contact Kelsey at 718.746.5900 or Kelsey@gnyada.com .
GNYADA appreciates the cooperative work of stakeholders and Assemblyman Bob Carroll for their efforts in crafting this new bill.
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020 3
Dealer Group Sued for Military Lending Act Violations
New York has a law prohibiting dis- crimination against service mem- bers in the context of credit deci- sions so don’t reject a service mem- ber’s credit application to avoid dealing with the MLA. Dealers who offer financing to active duty service members and their dependents should consult with their dealership attorney to ensure they are complying with the MLA. Talk to your financing institu- tions to find out their MLA poli- cies. It is likely that many will report that they will not accept credit contracts with covered borrowers if it includes credit- related products that trigger the MLA. Since New York requires GAP be offered in certain circum- stances, it is likely the financing company will tell consumers they are not responsible for the GAP if there is a loss to avoid triggering the statute. What should dealers do now? n n n
NADA recently alerted members about the first known Military Lending Act (MLA) lawsuit against a dealer. An active duty service member has filed a class action law- suit in federal district court in Florida against an Arizona-based dealership group asking for contracts to be voided, $500 per violation, monetary damages, and legal fees. This lawsuit is based on a 2017 Department of Defense (DOD) MLA interpretation, which says that including credit-related products such as Guaranteed Automobile Protection (“GAP”) and credit insur- ance in a motor vehicle retail install- ment contract with covered borrow- ers subjects the transaction to the MLA. MLA FAQ What is the MLA and who does it apply to? The MLA, enacted in 2006, pro- hibits extending consumer credit with a military annual percentage rate of credit that exceeds 36% to covered borrowers. The MAPR “includes all cost elements associat- ed with the extension of credit, including fees, service charges, renewal charges, credit insurance premiums, any ancillary products sold with any extension of credit to a servicemember or the service- member’s dependent, as applicable, and any other charge or premium with respect to the extension of con- sumer credit.” If the MAPR is 36% or lower, the creditor must still comply with a series of duties and restrictions, including providing certain disclo- sures about the MAPR in addition to those required under the Truth in Lending Act and excluding certain provisions from the credit contract.
Who are covered borrowers? Active duty members of the military and their dependents. How do I know if someone is a covered borrower? There are two “safe harbor” methods for determining if someone is a covered borrower. Either entering the consumer’s last name, date of birth and Social Security number into https://mla.dmdc.osd.mil/mla/#/home or accessing a “statement, code, or similar indicator” describing mili- tary status from a consumer report- ing agency. How does the MLA impact sales to covered borrowers? Under DOD’s 2017 interpretation, if a credit-related product such as GAP and credit insurance is includ- ed in a motor vehicle retail install- ment contract, the transaction is sub- ject to the law’s duties and restric- tions. One of these restrictions pro- hibits non-depository institutions, like dealers, from taking a security interest in the vehicle being financed. Because of this limitation, many finance sources have told dealers that they will not take assignment of credit contracts with covered borrowers that involve GAP Waiver or other credit- related products.
The DOD Interpretive Rule also says that financing only product-related items such as an extended service contract or negative equity in such transactions fits within the motor vehicle financing transaction and therefore does not subject the transaction to the MLA.
4 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020
Dealers Collected Over 9,000 Winter Coats for New Yorkers in Need 8
the total number of coats collected by GNYADA members to more than 60,000 since we began participating in 2012. A record high of 195 dealer- ships participated this year. “Our members have stepped up again by showing their commitment to help those in need throughout the region, delivering much-needed new and gently used coats to New Yorkers fac- ing a long, cold winter,” said Mark Schienberg, President of GNYADA. “This is another great example of the enormous community impact and the charitable nature of our industry. Once again, when there are people in need of help, new car dealers show their compassion and drive.” In addition to locations throughout
the five bor- oughs, our new car dealers are the only collectors to extend the drive’s reach to Long Island, Westchester, Rockland, and beyond. GNYADA thanks all the participating dealers of the Coat Drive for each and every coat collected through their strategic and often creative methods of helping spread the warmth this year. GNYADA also thanks the students from Lincoln Technical Institute who assisted with loading the trucks and a special thank you to Freeman Decorating for providing extra helpers and the two 26-foot trucks used to deliver the 9,000 coats to New York Cares.
GNYADA, in partnership with New York Cares, a not-for-profit charity dedicated to addressing New York’s most pressing needs, helped drive away the cold for many New Yorkers. GNYADA member dealers once again lead the effort in the New York Cares Winter Coat Drive, collecting more than 9,000 coats - roughly 10% of the Coat Drive's total. This brings
9 Tesla, Rivian Look to Seize Ground in Albany
Tesla and Rivian are gearing up for a hard-lobbying effort this year in Albany. GNYADA has been monitoring activity in Albany and has learned efforts are being redoubled to take on New York’s Franchise System. This year’s Legislative Session is
shorter than most years, which means things may move faster than usual. GNYADA will be on-guard for legislation designed to unravel the State’s Franchise System, which has been Rivian and Tesla’s number one priority in Albany the last few years. This development highlights the
importance of dealers staying active politically. GNYADA works continuously to build and maintain strong relationships with our State leaders so that we are considered when legislation is presented. Your support for GNYADA’s efforts is as important as ever.
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020 5
Dealers Facing Cybercrime Threats
A Florida dealership employee opened an email, that launched a ransomware attack, which halted the dealer’s business for several days. This is just one example of the growing cybersecurity threat facing dealers. Since dealerships maintain a lot of personal information about consumers and employees and make large payments via wire transfer or ACH transactions, they have become targets for cybercriminals. If the hackers leak the data, your dealership is legally liable for the breach. Dealerships are most vulnerable to social engineering (an employee may avoid usual security protocols) attacks and ransomware (dealership must take some action to retrieve their own data), which is what took down the Florida dealership. Effective May 10, 2020, most employers in New York City will no longer be allowed to require applicants submit to a pre- employment test for cannabis. The legislation prohibits dealers from making pre-employment inquiries. The New York City Commission on Human Rights has the authority to impose up to $250,000 in fines for intentional violations of the law. The law will not bind employers who are a party to a collective bargaining agreement that “specifically addresses” the drug testing of applicants.
potentially a huge return for a relatively low cost. If you are unsure about how to protect your business, a great place to start is to understand the gaps between your current IT practices and the best practices that all dealers should have in place. Helion Technologies – the largest dealer- focused IT service provider in the country – offers dealers an IT risk assessment that can help you to understand what you need to do to best protect your business. GNYADA thanks Erik Nachbahr President and Founder of Helion Technologies for this article. If you would like more information about their services contact Jeff Mason at JMason@heliontechnologies.com or call 443.541.2170.
Prepare Your Dealership The only way to effectively protect your dealership from cybercrime is to implement IT best practices. The number one best practice is to train your employees to: n Carefully monitor emails; n Not click on attachments from unknown senders; n Install the most up-to-date software. There are several cybercrime security companies that will train your employees how to be vigilant against threats. A good security awareness program will actually send simulated cybercrime attacks to your employees. If an employee clicks on the link, they are immediately enrolled into an online training program. Over the course of a year, continued security awareness training has been proven to reduce the risk of attacks from 27% to 2%. That’s This law applies solely to pre- employment testing. Dealers may still prohibit cannabis use at work, conduct reasonable arises out of an accident involving a current employee, and discipline employees for working while impaired. New York City Dealers are reminded of their obligation under NYC law to engage in a cooperative dialogue with employees who may need a reasonable accommodation, which may include certified users of medical cannabis. suspicion testing of current employees and testing that
11 NYC Dealers - No Testing for Cannabis
6 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020
12 Business Pays $150,000 for Wrongful Termination ADA REQUIRES INTERACTIVE PROCESS AND REASONABLE ACCOMMODATION
An employee who was out on Family Medical Leave Act (FMLA) used all of their time and was granted an extension. When the employee asked for a second extension, the employer terminated them. Avoid costly terminations by knowing when you must make reasonable accommodations for an employee returning from a leave of absence. While the employee had used all FMLA leave for the birth of a child, they continued to suffer from a medical condition that is covered by the Americans with Disabilities Act (ADA). The ADA requires employers to provide employees with “reasonable accommodations” and to engage in an interactive process with
for the actual hours worked or at least four hours at the minimum wage, whichever is greater. If an employee decides to stay home and the dealership is open, any time taken off due to the poor weather conditions is unpaid or may be taken as a vacation, sick or personal day. If the dealership doesn’t open, these employees need to be paid their full salary. If the dealership is open and the salaried employee decides to stay home, the dealer may require them to use accrued leave. A dealer cannot dock an employee for partial day absences, even if they work only half a day. employees who request, or appear to need, accommodations. Reasonable Accommodations A “reasonable accommodation” is a modification or adjustment that gives someone the equal opportunity to be hired or allows them to perform the essential job duties to the same extent as someone without a disability. Dealers do not have to grant accommodations that would impose an “undue hardship” on their business. Best Practices Engage in conversation with the employee to find a solution that works for them and the dealership. New York City Dealers – Salaried employees n n n
Additional Requirements New York City law also requires dealers to engage in a “cooperative dialogue” with employees who request an accommodation. Dealers must provide a report to the employee which documents about why an accommodation can or cannot be granted. Before you terminate an employee who may not be ready to return at the expiration of their leave or may need a reasonable accommodation, call the Employee Relations Plan Hotline at 718.746.5900.
Payment of Wages - Severe Weather Closings
When a dealership closes, or an employee is not able to make it in because of severe weather, dealers must follow the rules below:
Dealers with union contracts must abide by the Severe Weather policies in the CBA. If you have any further questions about payroll obligations due to your dealership closing for severe weather, please call the Association at 718.746.5900.
If employees are notified in advance that the dealership will be closed, dealers do not need to pay them. Dealers can allow employees to use their accrued time off to be paid. If the dealership closes but does not let employees know in time, dealers must pay any employees who report to work for at least four hours (or the minimum number of hours in the shift, whichever is less) at minimum wage. If the dealership closes early, hourly employees must be paid
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020 7
Hot Topic: Waste Labeling and Disposal Annual OSHA Seminar – March 11
Highlights of this year’s Annual OSHA Seminar will include an interactive Spot the Violations in GNYADA’s Service Bay and a review of the Top 10 OSHA violations in dealerships. Additional topics will include indoor air monitoring requirements, injury and illness reporting along with reminders Hazardous Waste Management Identifying waste properly is step one. Not all waste is hazardous. At the seminar we will discuss what is and what is not hazardous waste. Register to find out more! Here’s a hint– used oil is NOT hazardous waste. Last month, one of Lake Ronkonkoma’s oldest buildings was destroyed by a fire that started in a car in the body shop. Dealers can avoid such incidents, as well as violations, fines, and legal action by about what to do if an OSHA inspector shows up at your dealership.
staying educated on hazardous waste rules and regulations, including labeling and disposal methods. Hazardous Waste Storage Dealers should designate a specific marked area for storing hazardous waste, including any that is flammable. Waste should be stored in closed containers, and all containers/drums storing liquid hazardous waste is required to be placed on capacity spill pallets that provide a secondary containment in case of a spill. Hazardous Waste Labeling All containers containing hazardous waste must be labeled, in accordance with the waste contained. The product’s Safety Data Sheets (SDSs) are a good source for proper labeling. To help keep track of storage time limits and subsequent disposals, all drums and other containers of hazardous waste should have the accumulation start date marked on the container.
Hazardous Waste Disposal Disposing of all hazardous waste, including flammable waste, in appropriate intervals is also important. Frequent disposal helps dealerships avoid being categorized in a more regulated status due to the amount of hazardous waste stored onsite. Dealers should establish agreements and make service arrangements with authorized disposal companies for pick-ups and proper and timely disposal of any hazardous waste generated. Disposal manifests will be provided by the disposal companies and should be retained by dealers for Environmental Engineering, a GNYADA Allied Member, for this article. Contact Kelsey to register for the OSHA seminar–firstname.lastname@example.org at least three (3) years. GNYADA thanks Walden
NYC: Make Single Occupant Restrooms – Gender Neutral Post Required Sign
NYC rules require that single occu- pant restrooms must be available to individuals of all sexes/genders. Additionally, the 2016 law requires a sign designating the single-occupant restroom as gender neutral. The NYC Department of Buildings (DOB) is reminding small businesses about this rule. A single-occupant restroom is a bath- room with a single toilet and/or one urinal. This restroom should lock from the inside.
physical alterations but you must fol- low the signage requirement.
A single-occupant restroom is NOT: n One with multiple stalls or urinals n One urinal and a stall that cannot be locked from the inside n Accessible only through a men’s or women’s locker room Signage City dealers who have a single-occu- pant restroom in their dealership must post a sign adjacent to the door of that restroom indicating that the rest- room can be used by all genders. There is no requirement to make any
8 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020
16 New License Plate Style Announced
Procedures for receiving a plate order:
n Confirm the plate numbers on the flap of each box; if correct, accept the order in VERIFI. n DO NOT OPEN ANY BOX OF PLATES OR PACKAGES OF IN TRANSIT PERMITS UNTIL YOU HAVE CONFIRMED THE SHIPMENT IN VERIFI AND ARE READY TO ISSUE THEM. n When you are ready to use the box of plates, open only that box and confirm that you received 25 complete sets of plates in the proper sequence. n You must make those 25 sets of plates available in VERIFI before you are able to begin issuing them. Contact DMV-DIRECT at 718.747.0400 if you have questions about the new plates.
Starting April 1, 2020, the New York State Department of Motor Vehicles will begin issuing a new license plate style: the Excelsior plates. These new Excelsior plates will replace the Empire gold style plate which has been around since 2010. The Excelsior plates will automatically ship to dealers in late March. Dealers must continue to use and exhaust their existing supply of Empire Gold plates prior to opening boxes of new Excelsior plates.
2020 NADA Dealership Workforce Study is NOW OPEN!
The 2020 NADA Dealership Workforce Study, the organization’s eighth survey, is now open for enrollment. GNYADA encourages all dealers to participate. Your participation provides NADA with valuable data to report on the current trends in employee compensation, benefits, demographics, retention and more. n Enroll at www.nadaworkforcestudy.com. You will need your Store or Group NADA Member ID. If you do not have this number, please call 800.557.6232 and request your ID n Complete a confidential online questionnaire n Export and upload your Payroll File (no personal or dealer identifiable data is reported) All participating NADA Members will receive : n An electronic copy of a custom comparison report for their store. This exclusive report provides the partici- pating dealership with a Workforce Management Scorecard that compares and ranks the dealership How to Participate
against a peer group of other participating dealerships on key metrics related to compensation, retention and turnover. n An electronic copy of the 2020 Dealership National & Regional Trends in Compensation, Benefits & Retention Report. n One year of access to the Database Search Tool, an online customized search tool with archived compen- sation and tenure data from all NADAWorkforce Studies for 60+ positions. The Study will close on April 15, 2020. If you have any questions, contact NADA at email@example.com.
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020 9
18 GNYADA Surety Bonds – Lowest Fee in the State GNYADA’s Surety Bond service can get you a bond within 24 hours and at the lowest price in the State. With GNYADA, all dealers pay a flat with no additional paperwork or new forms needing to be filled out! In addition to Surety Bonds, If you need a bond, please call or email Jennifer Berman at 718.746.5900 x235 or firstname.lastname@example.org.
GNYADA can assist you with your other insurance bond needs. Whether you need a bond for your utility com- pany, out of state dealerships, new dealership’s opening, street permits, secondhand dealer license bonds, or even bonds for games of chance – we’re here to help!
fee of $300 for a New Car Dealer Surety Bond. Unlike other bond issuers who could charge up to $1,000 because they rate each appli- cation according to individual risk. GNYADA’s Surety Bond process is quick and easy. No financial state- ments required, and no credit bureau checks for you or your spouse. And, we issue riders to make amendments to names and/or addresses at no addi- tional charge. Surety Bonds need to be renewed every two years. GNYADA takes care of the renewal automatically for you
PROGRAM OND A AD GNY
Shopping for Medicare 19
If you have dealership employees who are 65 or over, you should make sure that they are aware of their options. Coverage offered through Medicare may be better for the employee, and cheaper for the dealer, making this a win- win! It is estimated that there are 75 million baby boomers and approximately 3 million will hit retirement age (65) every year for the next 20 years. After reaching retirement age, individuals who are still working can opt to stay on their dealer-sponsored health insurance or apply for Medicare Coverage. n You are a US Citizen or permanent legal resident n You or your spouse have worked long enough to be eligible for Social Security n You have end stage renal disease; n You have been entitled to Social Security disability benefits for at least 24 months n You have amyotrophic lateral sclerosis (Lou Gehrig’s disease) Anyone who meets the below criteria is eligible for Medicare:
There are four parts to Medicare:
n Part A covers hospital stays, skilled nursing care, home health care and hospice care. Most people don’t pay for Part A. n Part B covers doctors’ services, outpatient medical and surgical services, diagnostic tests, and outpatient care. You do have to pay for Part B coverage. n Part C is a plan that is offered by insurance companies. It is referred to as a Medicare Advantage Plan. It combines both Part A and Part B and normally Part D. There are premiums and co-pays associated with these plans. n Part D is prescription drug coverage. Medigap plans and Medicare supplemental insurance are very popular; these are issued by insurance companies to help cover some of the costs not covered by Medicare. There is a cost associated with this insurance. If you would like to discuss Medicare in more detail, please contact Michael W. Conway, Executive Director of the GNYADA Insurance Brokerage (718.746.8100 or email@example.com ).
10 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020
Lawsuits Target Dealership Websites
Dealers don't want to waste time interviewing ineligible applicants – (who would hire a valet without a clean driving record?) and may be tempted to ask for a copy of an applicant's license to run a pre-check before interviewing them. Asking for documents before making a conditional job offer may be a costly mistake! Here's why – you may violate anti- discrimination laws by viewing the applicant’s license before meeting them in person. You may learn that they are a member of a protected category. If you learn protected GNYADA members, and dealers around the country are seeing first- hand the significant increase in law- suits claiming that the dealership websites violate the Americans with Disabilities Act (ADA) because they are not accessible to people with cer- tain disabilities. 2018 saw 2,285 of these lawsuits against retail websites – a threefold increase over 2017 – filed in federal courts in New York, Florida, California, Massachusetts, Pennsylvania, Texas, and Georgia. This increase is due, in part, to a 2017 ruling that a supermarket violated the ADA because sight-impaired cus- tomers could not adequately access the site. The court said that the super- market must meet the standards of the Web Content Accessibility Guidelines (WCAG) v.2.0. These guidelines can be found at: http://w3.org/TR/WCAG20/
information from the license, you cannot “un-see” or “un-know” it before interviewing the candidate. What should dealers do when hiring for a job position that requires a driver’s license? It is permissible to state that driving is required for the position. But you can avoid allegations that a hiring decision was wrongly based on any protected traits by not asking to see a driver's license before making a conditional offer, even if the position requires driving and your insurance company requires a clean driving record. These guidelines are not federal, so do not carry legal weight or provide safe harbor. However, there are no federal guidelines regarding website accessibilityso following the WCAG is the best option. NADA has been in contact with the U.S. Department of Justice to advo- cate for dealers on this issue, attempt- ing to clarify the responsibilities and accessibility standards of public-fac- ing websites. Dealers need to take website accessi- bility into consideration, and it is rec- ommended that dealerships discuss accessibility with their website ven- dors, OEMs, and legal counsel to reduce the potential for legal liability and costs. If you have questions about website accessibility or what to do if you are the target of such a lawsuit, call the Association at 718.746.5900.
What is an accessible website? Accessible websites can be used by anyone, regardless of ability or impairment (visual, hearing, mobility). What makes a website accessible? It can be controlled with a key- board only and has clear, con- sistent design (e.g., uncrowded layout, sufficient contrast and size of text and images, minimal slideshows and automatic video/audio).
21 Questions from the Field When Can I Ask Job Applicants for a Copy of Their Driver’s License?
What if the applicant does not have a valid license or clean driving record? You are not obligated to hire an applicant, even after making a conditional offer, if they do not have a valid license or clean driving record for a position that requires driving.
Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • February 2020 11
Upcoming GNYADA Seminars
80% of Our Members Have
OSHA SEMINAR March 11 / CAET, Queens, NY
Renewed – Have You?
This year’s program will focus on common violations found in dealership service areas. Attendees will walk through a training service bay that has been “mocked up” with multiple violations. Spotting all of the violations is a challenge. Attendees will also participate in discussions relating to the Top 10 Violations for Auto Dealers and more.
Your membership directly con- tributes to GNYADA’s work pro- tecting and promoting franchised new car dealers’ interests before local and state government and regulatory agencies; strengthening and enforcing franchise laws; push- ing for a business-friendly climate where new car dealers can thrive, provide the best products and serv- ices to consumers, and maintain high employment. GNYADA membership gives you access to: Our many publications, which keep members current on New York franchise and employment law, regulatory compliance, and industry issues and developments Immediate answers to your most pressing questions through our Dealer Hotline Our broad spectrum of education and training seminars and webinars Site visits by our Field Reps Reduced prices on products and services through our Dealers Discount Club And, as dealer principal, you receive an invitation for two to the New York Auto Show Dealer Preview–one of our most sought- after invitations! Additionally, your membership contributes to GNYADA’s PAC, ensuring area franchised new car dealers have a voice in New York’s political process. Thank you for being a member of the Greater New York Automobile Dealers Association. The entire GNYADA team looks forward to continuing to serve you in 2020. n n n n n
DEALERSHIP ADVERTISING March TBD / WEBINAR
Dealers will hear about the dos and don’ts relating to dealership advertising. This webinar is the first in a series of compliance webinars put together with Allied Member, Arent Fox.
BILLERS’ WORKSHOP April 7 / CAET, Queens, NY
May 5 / Long Island May 6 / Westchester
Training billers on proper procedures for processing New York transactions is essential to a good dealership operation. This program is so important, GNYADA is bringing the program to our east-end members and our northern members. DMV and Vanguard (VERIFI vendor) are expected to be at each program to highlight DMV activities in this area. SPRING LABOR LAW May 20 / CAET, Queens, NY James E. McGrath, III, Esq. will focus on and review the complicated business of managing overlapping leaves of absence. If you would like to register for any of these programs, please contact firstname.lastname@example.org or call her at 718.746.5900.
Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY 11357
GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Auto Show: 718.746.5300 Center for Automotive Education & 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.