July 12, 2016

Thank You to Our Sponsor of This Edition of CAWA Connections Matthias Kopecky Elected to the Position of 2017 Secretary to the CAWA Board of Directors Mr. Kopecky (SSF Imported Auto Parts) joins other CAWA officers of the Board including Chair Elect Michael Antonelli (Vantage Marketing Global, Inc.); Vice Chair - Elect Jack Gosnell (Next Level Parts, Inc.); Treasurer - Elect Dan Hanson Jr. (Hanson Distributing Company) and Immediate Past Chair- Elect Greg Livingston (All Trade Tools). They will be installed at the Association's annual dinner meeting to be held in Las Vegas on October 30, 2016 (the Sunday night before the AAPEX/SEMA shows).  Information on the event will be sent out in September. For immediate information, contact CAWA's President & CEO, Rodney Pierini at 800.332.2292, ext. 1 or admin@cawa.org. Matthias Kopecky Arizona Revamps Lead Acid Battery Deposits Thanks to CAWA Beginning on August 6, 2016, retailers in Arizona are no longer limited to the amount they can charge consumers for a refundable deposit on the purchase of a new lead acid battery. With the passage of HB 2132, sponsored by CAWA and enacted during the 2016 legislative session, the previous $15 cap has been eliminated and replaced with the authority that allows retailers to charge a deposit on a new lead acid battery that reflects a market-based approach. As before, the deposit is fully refundable upon the return of a used lead acid battery within 45 days from the date of purchase of the new battery.  Under the new law, market prices will determine the amount of the fully refundable deposit charged to consumers by retailers. The intent of the law is to protect retailers from being financially penalized in the transactions involving the sale of batteries.The legislation maintained the broader public policy focus of keeping used lead acid batteries out of the landfill.  For further information contact CAWA's Legislative Advocate in Phoenix, Stuart Goodman at sgoodman@goodmanschwartz.com or 602.277.0911. Six Major Takeaways from Recent Lang Reports - Most Recent Data Aftermarket Product and Purchased Service volume for all types of use topped $239 billion at user-price, up 3.6% from the previous year.  Cars and light trucks generated 76% of product sales, with Purchased Service increasing at an annual pace one-third faster than product growth.  The DIFM (Do-It-For-Me) market generated nine times greater product growth than the DIY (Do-It-Yourself) sector among cars and light trucks.  Foreign nameplates generated most light truck aftermarket product growth as foreign nameplates captured a larger share of cars and light trucks in key vehicle age categories recording high aftermarket use.  Three growth factors powered light vehicle aftermarket product expansion: VIO (vehicles in operations) growth, a surge in miles driven, and the aging vehicle population.  Nearly $1 billion in product sales shifted among DIFM Service Outlets, as Independent (non-Dealer) outlets generated 79% of light vehicle DIFM product sales.  Tell Your Employees and Customers - the Magnuson-Moss Warranty Act The Magnuson-Moss Warranty - Federal Trade Commission Improvement Act of 1975, protects consumers from being wrongfully denied warranty coverage by new car dealers. For more information, click here. Recall too that CAWA has sponsored legislation to require new car dealers to disclose the Act to consumers at the point of sale. For more information on this effort, see our legislative advocate, Gary Conover at 916.233.9655 or gary@garyconover.com. If You Do Not Define Your Paid Sick Leave Policy, the State Will Do it for You Under California's mandatory paid sick leave (PSL) law, employers can limit the amount of PSL to 3 days or 24 hours per year. However, you must communicate this limitation in writing. Without a written policy, your company must use the statutory mandated accrual rate of 1 hour of sick leave for every 30 hours worked. This can result in a full time employee potentially accruing over 69 hours of PSL per year and being allowed to carry that over to the next year, and so on; that's nearly 9 days per year if the employee works 40 hour workweek!  For further guidance, contact our California based attorney, Steve Marmaduke at 916.441.2430 or smarmaduke@wilkefleury.com. Recall, as a member you can receive ½ hour of FREE legal consultation per month. Another member benefit. Progress on CAWA's Leadership Goals of 2015-2016 See the enclosed report ( here) on the progress that has been made in achieving the following goals for the Association in promoting the auto care industry :  (1) build upon the Auto Care Association's Program (www.autocarecareers.org) to promote and educate our members on effective ways to recruit people to our industry, and  (2) educate members regarding telematics by simply defining it, i.e., what it actually is, in an understandable way, including some of its implications, e.g., privacy issues, ownership of information, etc.  Comments can be directed to Rodney Pierini, President & CEO, at 800.332.2292, ext. 1 or admin@cawa.org. Another member benefit. Crackdown on Employers Who Shunt Employees onto Medicare The Centers for Medicare and Medicaid Services (CMS) is stepping up efforts to root out employers who have improperly put workers who were eligible for the company's group health plan into Medicare.  Under the law, employers are prohibited from offering incentives of any kind to a Medicare-eligible individual to enroll in Medicare instead of the employer's health plan. Companies with 20 or more employees may not encourage covered employees and/or dependents to make this change in coverage.  The fine for encouraging an employee or dependent to take Medicare is $5,000 per situation, but that's not the largest potential penalty. The larger penalty is the bill for any claims that Medicare paid as a primary payer versus what it should have paid as a secondary payer. This claim can be huge depending on how much care an individual that should have been in a company health plan sought out while on Medicare.  Source: Armstrong & Associates. For more information click ( here) and for answers to your questions contact our insurance partner, Mat Nabity, toll free at 866.340.2247 or mnabity@coremarkins.com. Another member benefit. How to Apply New Federal Overtime Rule to Outside Salespeople See the enclosed article (here) that offers guidance to this employer human resource issue brought to us by our friends at the California Chamber of Commerce. For more details on these type issues, contact CAWA attorneys in your state by going to www.cawa.org. Another member benefit. Another Reporting Requirement in California for Employers with 10 or More Employees Employers: Beginning January 1, 2017, employers with 10 or more employees are required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the EDD. All remaining employers will be subject to this requirement beginning January 1, 2018. For more information, visit: www.edd.ca.gov/EfileMandate. Auto Part Retailers' Sales Generally Do Not Qualify for the Farm Equipment and Machinery Partial Exemption See the enclosed article from the California State Board of Equalization that identifies a list of items that generally do not qualify for the partial exemption from sales and use tax for sales of farm equipment and machinery ( here). Should you have any questions regarding this article, please contact our California based legal counsel, Steve Marmaduke at 916.441.2430 or smarmaduke@wilkefleury.com. Recall as a member you receive up to ½ hour FREE consultation with a CAWA attorney per month. For the attorney in your state, see www.cawa.org. Another member benefit. 4 Things to Consider Before Choosing a Credit Card Processing Company If you are like many other members, you have probably heard misleading promises of low rates and excellent customer service that are never fulfilled. As a member of CAWA, Superior Financial Systems (SFS) and the Association understand your needs and are here to help. Most people choose a credit card processing company based on the lowest advertised rates, without checking important facts like these that can save you money and improve your credit card processing system ( view). To receive a FREE analysis of your current credit card processing system contact Todd Lazar at 888.737.7762 or todd@sfsprocessing.com. Another member benefit. "CAWA - Representing the Automotive Parts Industry"

June 1, 2016

Thank You to Our Sponsor of This Edition of CAWA Connections The State of the Auto Care Industry - A 2016 Report See the enclosed report ( view) as developed by our national partners, the Auto Care Association.   Another View of California's $15 Minimum Wage Increase In April, Governor Jerry Brown signed California Senate Bill 3 ("SB 3"), which will gradually raise the State minimum wage to $15 per hour. The State's current minimum wage is $10 per hour. SB 3 provides six annual increases to the current minimum wage for employers with 26 or more employees. Beginning on January 1, 2017, the minimum wage will increase to $10.50. In 2018, the minimum wage will increase to $11 and then increase by $1 each year until 2022, when the minimum wage will be $15. Employers with 25 or fewer employees will have an additional year to implement each of the increases. In other words, the State minimum wage will not begin to increase for these smaller employers until January 1, 2018. The Governor may pause scheduled increases based on certain economic conditions. However, the Governor may only pause the scheduled increases a maximum of two times. Once the $15 wage has been reached, the Department of Finance will annually increase the minimum wage for the following year based on statistics from the U.S. Bureau of Labor Statistics. Many employers will need to significantly adjust their compensation and benefits structures in light of the new law. Of course, the increased minimum wage will affect overtime and double-time. It will also affect exempt employee salaries because exempt employees under California law generally must earn a salary that is at least twice the State's minimum wage for full-time employment. This means that under the current $10 per hour minimum wage, exempt employees must earn an annual salary of $41,600. Under the $15 per hour minimum wage, the minimum annual salary for exempt employees jumps to $62,400. Finally, employers should bear in mind that cities and counties may have their own minimum wages that are higher than the State minimum wage (e.g., Berkeley, Emeryville, Los Angeles, Mountain View, Oakland, Palo Alto, Richmond, Sacramento, San Jose, San Francisco, Sunnyvale.) As a result, employers should determine whether another minimum wage applies, and pay their employees according to the higher applicable minimum wage. Source: Wilke Fleury Law Firm Aftermarket Vehicles - "The State of Affairs" Aftermarket Vehicles (cars and light trucks four years and older) generate over 96% of total car and light truck product and service volume (not including Accessories and Tires), but they comprise a much smaller portion of the total VIO (vehicles in operation). Aftermarket Vehicles currently represent 80% of total cars and light trucks on U.S. roads. With 2016 new vehicle sales blazing at a faster pace than the record-setting 2015 volume, Aftermarket Vehicles will likely comprise an even smaller share of total cars and light trucks at the beginning of 2017.Source: Lang Report Members, Other Industry Professionals and Guests are Invited to CAWA's June Training Meeting Register ( here) for CAWA's June training session to be held on June 23, 2016 in Long Beach. Presentations include:  Bill Hanvey, President & CEO, Auto Care Association - "Headwinds and Trends for the Auto Care Industry"  Chris Gardner, Vice President, Automotive Aftermarket Suppliers Association -"Connected Aftermarket: Why Wait on the Connected Car"?  Eric Caris, Director of Cargo Marketing, Port of Los Angeles - "Everything You Ever Wanted to Know About the Port of Los Angeles"  Jan Beaver, Vice President, Preferred Employers Group - "Managing Your Workers Compensation Premiums"  A reception and tour of the All Trade Tools headquarters for CAWA and YANG members will be held after the training session. For more information contact us at programs@cawa.org. Another member benefit!   CAWA Announces 2016 Scholarship Awards Twelve individuals were awarded scholarships this year and each state was represented by at least one deserving student. For details on the awardees see the enclosed press release (here). Another member benefit. New Laws to Expand Ban on Smoking in Workplace in June California employers may not knowingly or intentionally permit the smoking of tobacco products at a place of employment or in an enclosed space. This prohibition includes permitting non-employees to smoke in an enclosed workplace. Legislation signed by the Governor this month will change some of the workplace rules relating to smoking in the workplace and eliminate most of these specific exemptions. The amendments take effect beginning June 9, 2016. See ( here) the new law's explanation provided by our friends at the California Chamber of Commerce. Register for the 2016 AAPEX and SEMA Shows Recall, too, that CAWA will be holding its annual dinner on the Sunday night (October 30th) before the Shows at Caesar's Palace. Watch for the announcement and registration forms to be sent prior to the Shows. AAPEX registration here. For more information, contact our President & CEO, Rodney Pierini at admin@cawa.org or 800.332.2292, ext. 1. Governor Signs Bill Creating ADA Grace Period for Businesses (SB 269) Existing law prohibits discrimination on the basis of various specified personal characteristics, including disability. The Construction-Related Accessibility Standards Compliance Act establishes standards for making new construction and existing facilities accessible to persons with disabilities and provides for construction-related accessibility claims for violations of those standards. Existing law specifies that a violation of construction-related accessibility standards personally encountered by a plaintiff may be sufficient to cause a denial of full and equal access if the plaintiff experienced difficulty, discomfort, or embarrassment because of the violation. Under existing law, a defendant is liable for actual damages plus minimum statutory damages for each instance of discrimination relating to a construction-related accessibility standard. This bill, for claims filed on and after its effective date, establish a rebuttable presumption, for the purpose of an award of minimum statutory damages, that certain technical violations do not cause a plaintiff to experience difficulty, discomfort, or embarrassment, if specified conditions are met. This bill also exempts a defendant from liability for minimum statutory damages with respect to a structure or area inspected by a certified access specialist for a period of 120 days if specified conditions are met. The bill requires a defendant who claims the benefit of this exemption to disclose the date and findings of any certified access specialist inspection to the plaintiff. For further information on this legislation please contact our California based legislative advocate, Gary Conover at 916.233.9655 or gary@garyconover.com. Department of Labor Releases Final Rule on Overtime As expected, the Department of Labor's (DOL) Wage and Hour Division released the final rule governing overtime pay this month. The business community in coalition, including CAWA, lobbied long and hard to persuade DOL that the rule change was too severe.  A few facts about the rule:  Salary Threshold Changed to $913/week ($47,476 per Year)  Duties Test is unchanged  Up to 10 percent of the salary can come from bonuses or commissions  Effective date is Dec. 1, 2016  For detailed information see here: https://www.dol.gov/whd/overtime/final2016/. Recall, as member, you can receive up to ½ per month of FREE legal consultation on this and other issues affecting your business. See www.cawa.org for the attorney in your state. Another member benefit. Industry Summit to be Held to Discuss Contemporary Auto Care Industry Issues CAWA, the Auto Care Association and the Automotive Service Councils of California will be holding an Industry Summit on June 24, 2016 in Long Beach, California. The purpose of the Summit is to bring the industry together to communicate and discuss issues affecting the industry. Issues to be discussed include telematics, cybersecurity, the recruitment of quality technicians and the "connected" repair shop of the future. See ( here) for details and registration for the event which is FREE. Another member benefit. The University of the Aftermarket Foundation has Agreed to Provide a Full Scholarship to the Leadership 2.0 Program The Leadership 2.0 Scholarship covers the full expense of tuition, materials, lodging and meals for the program as described by the University of the Aftermarket at Northwood University. The value of this scholarship is $6,250. The awardee must also be employed by a distributor member of CAWA. See these enclosures ( here and here) for more detailed information and contact Rodney Pierini, CAWA President & CEO with questions. "CAWA - Representing the Automotive Parts Industry" Copyright 2016, All Rights Reserved

May 10, 2016

Thank You to Our Sponsor of This Edition of CAWA Connections

 

ENTER NOW FOR YOUR CHANCE TO WIN THE 2016 DELPHI DREAM SHOP!

click here for more information 

Magnusson Moss Notification Bill Introduced and Sponsored by CAWA and the Auto Care Association

The sponsored bill (AB 2837) has been introduced into the legislative session. Essentially, the bill would require new car dealers, at the point of sale, to disclose to the consumer that the use of replacement parts and service, other than from the dealer, will not jeopardize the manufacturers' warranty. For further information, contact our California based legislative advocate, Gary Conover at gary@garyconover.com or 916.233.9655. Another member benefit! Arizona Vehicle Emissions Inspection Program is Continued (SB 1255) Supported by CAWA, the Arizona emissions inspection program has been extended six years through July 1, 2022. The bill not only assures a safer driving scenario in the State but will drive business to your repair garage customers to fix the emissions and other related problems of the vehicle. Contact our Arizona based advocate, Stuart Goodman at sgoodman@goodmanschwartz.com or 602.277.0911. Another member benefit. Three Commitments You Must be Willing to Make in Sales to be in the Top 5% How far are you willing to go to make it in sales? See the enclosed article for guidance and ideas to consider (here).     California's Governor, Legislators and Labor Leaders Announce Landmark Agreement to Raise Minimum Wage - Governor Signs Bill! The governor joined legislators and labor leaders to announce a landmark agreement that makes California the first state in the nation to raise the minimum wage to $15 per hour statewide. See the enclosed article from the California Chamber of Commerce (here) to determine what it means to you! CAWA had engaged in coalition with other business groups to oppose this effort and any other effort to raise the minimum wage with an automatic adjustment for inflation measured by the Consumer Price Index. However, the legislature sent the bill for the governor's signature and he signed it into law. See our California based legislative advocate, Gary Conover for additional details at gary@garyconover.com or 916.233.9655. Surprise! Under New Minimum-wage Law, Many White-collar Workers Get Huge Raises Lost in the public discussion over the new landmark minimum-wage law approved by the California Legislature and signed by the governor, is the subsequent dramatic raise for many white-collar professionals. Once the law is fully implemented, professionals exempt from overtime across the state would need to receive at least $62,400 annually in compensation (here). Recall, as a member you can receive up to ½ hour per month of FREE legal consultation on these type issues from CAWA attorneys. See www.cawa.org for the attorney in your state. Another member benefit! Where Have All The Jobbers Gone? "Automotive Jobbers perform a vital role in the car and light truck aftermarket, providing local availability of automotive products and enabling the rapid and convenient repair of vehicles. Jobbers are a key link enabling the aftermarket to provide same-day availability across a broad range of aftermarket products. Jobbers buy from Warehouse Distributors (and other sources) and sell to Installers (service outlets, DIYers, and others)." "Despite their vital aftermarket function, Jobbers have declined in number since their population peaked in 1981. Over the past 35 years, the Jobber store count has fallen by more than 40% nationwide." The nationwide Jobber population peaked at just over 31,100 stores during 1981. Each year thereafter, the number of Jobber locations declined. By mid-year 2015, there were just over 17,000 Jobber nationwide. Source: Jim Lang New Workplace Notice, Policy Requirements Take Effect in California If you have more than five employees you are required to have in place as of April 1 anti-discrimination, anti-harassment and complaint investigation policies. You are also required to post starting April 1 a notification to your employees about California's pregnancy disability leave law. If you have not done so, now is the time to review your anti-harassment, discrimination and retaliation policies. Use this guide to help you comply with these latest workplace regulations in California. Recall, you have ½ hour of FREE legal consultation for questions regarding compliance and human resource issues. See www.cawa.org for the CAWA attorney in your state. Another member benefit. CARB Approves Revisions to Small Automotive Refrigerant Container Rules The California Air Resources Board (CARB) approved revisions to state regulations regarding the sale of small containers of automotive refrigerant. The revisions amend current regulations, which require retailers in the state to charge consumers a refundable $10 deposit, by mandating that any funds not returned to consumers must be used for consumer education on proper use and recycling of these small containers. Further, the revisions maintain the current requirement for the self-sealing valve, which CARB hails as a major success and which the U.S. Environmental Protection Agency has proposed as a nationwide requirement. CARB had originally discussed eliminating the deposit and return program altogether, citing the success of the self-sealing valve in reducing emissions from the use of the can. However, CARB reversed course back in March, deciding to retain the deposit program based on concerns that eliminating the recycling program would mean increased flow of the cans into the regular waste stream. CAWA and our national partners, the Auto Care Association argue that the program is inefficient and unnecessary as it forces retailers to ship the virtually empty cans across the country for recycling by manufacturers. See CAWA's legislative advocate, Gary Conover, for additional information. He can be reached at 916.233.9655 or gary@garyconover.com. CAWA Participates in an Industry Career Day in Arizona "Cars, Careers & Celebrities Expo" was held at the Phoenix LKQ Corporation facility attracting several hundred students seeking careers in the auto care industry. CAWA participated and promoted its scholarship program and industry specific job board. The event was hosted by the collision and mechanical repair segments of the industry in Arizona. CAWA President & CEO, Rodney Pierini met several students aspiring to careers in the industry. Here is Your Complimentary Access to the Auto Care Careers Recruitment Guide - the Newest Resource for Recruitment in Our Industry Changing recruitment techniques and new technologies have altered the way our industry seeks and finds quality talent. Talent acquisition is experiencing a massive shift in part by our hyper-connected world of social networking, mobile job searches and online competition. Use the guide as a reference, and make sure to share it with your HR and recruiting practitioners. Also check out the CAWA Career Center at jobs.cawa.org  and post your openings on the website's Industry Job Board. "CAWA - Representing the Automotive Parts Industry" Copyright 2016, All Rights Reserved