GNYADA October 2014 Newsletter

Are Your Employee Benefit Plans in Compliance?

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can be described as “rebuilt” or “remanufactured,” and limit use of the term “factory rebuilt’’ to certain used parts. The Guides also specify acts and practices that are unfair or deceptive under the FTC Act and are thus pro- hibited. The Guides prohibit misrep- resenting: that a used part or assembly is new; the amount of use a part or assembly has had; n n the identity of anyone who worked on a used part or assembly after its removal from the original vehicle; the condition or the amount of work done to it after the part’s or assembly’s removal from the original vehicle. n n FMLA Compliance Since 1993, employers with more than 50 employees have been required to provide up to 12 weeks of leave to qualifying employees under the Family Medical Leave Act. Employers must have FMLA com- munications, eligibility, and medical certifications to support their actions in this area. COBRA Compliance Employers must provide to some for- mer employees, retirees, spouses, for- mer spouses, and dependent children the right to continue health insurance coverage at group rates. Employers must provide a variety of notices to former employees regarding this cov- erage, including a Summary Plan Description, General Notices, and Election Notices.

The Federal Trade Commission (FTC) has updated its Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry (Used Auto Parts Guides). The Used Auto Parts Guides address advertis- ing, sale, and installation practices regarding previously used motor vehicle parts and assemblies of parts that contain previously used parts, such as engines and transmissions (“used parts”). The Used Auto Parts Guides require that used parts must be clearly and conspicuously identified as such in advertisements, on packaging, and if the product appears new, on the prod- uct itself. Further, the Guides prohibit misrepresenting the identity of the used parts’ rebuilder. They limit what Compliance with federally mandated employee benefit programs can be challenging. GNYADA’s Insurance Brokerage is working with Total Administrative Services Corporation (TASC) to help dealers comply. TASC saves time and money by streamlining compliance and avoid- ing penalties associated with non- compliance. Three key areas of where TASC can help dealers are: ERISA Compliance ERISA is the 1974 federal law that regulated Group Sponsored Benefits; it is overseen by the Department of Labor (DOL) and the IRS. DOL is auditing companies, including their ERISA Mega-Wrap Plan Documents, ERISA Summary Material Plan Descriptions, Form 5500s, and Health Care Reform Notices for Group Plans. 21

TASC can assist in any of these areas. It can provide all the required administration procedures, DOL Forms, Health Care Reform Notices, Plan Document and Summary Plan Description Notices, Disclosure and Policy Guidance, as well as employ- ee eligibility determination. In addi- tion, TASC will hold dealers harm- less if they make an error that results in an employer being penalized. If you would like to set up a meeting with a representative of TASC to learn more about their services, please contact Michael W. Conway at the GNYADA Insurance Brokerage, mconway@gnyada.com , or 718.746.8100.

FTC Updates Its Used Auto Parts Guide

The terms “remanufactured,” and “factory rebuilt” should be used only if the product was rebuilt “at a facto- ry generally engaged in the rebuild- ing of such products.” The Guides now also apply to used tires. The amendments became effective on August 22, 2014.

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

The Newsletter • October 2014

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