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  • Monday, October 28, 2024 9:44 AM | Anonymous member (Administrator)

    The U.S. Equal Employment Opportunity Commission has started to sue employers who it claims are not complying with the reasonable accommodation requirements of the Pregnant Workers Fairness Act (PWFA). In light of the flurry of EEOC litigation, employers should be mindful of 4 things they should not do.

    • Don’t just follow your old ADA procedures in pregnancy accommodation cases. At most, all you can request is (1) confirmation of the pregnancy, and (2) recommended accommodations that would be helpful under the circumstances. Also, there is an entire class of what the EEOC calls “predictable assessment” accommodations that generally have to be granted with no consultation with a health care provider (assuming the pregnancy has been confirmed). These are (1) allowing the employee to carry or keep drinking water nearby, (2) allowing the employee to take extra bathroom breaks, (3) allowing the employee to sit (if in a standing job) or to stand (if in a sitting job), and (4) allowing the employee to take extra breaks for eating or drinking.
    • Don’t require a pregnant employee to take a leave of absence instead of accommodating her on the job. Requiring a leave of absence is generally going to violate the PWFA. The only exceptions are (1) when you’ve engaged in the interactive process with the employee before requiring the leave, or (2) when the employee herself prefers to take a leave.
    • Don’t think that your pregnancy accommodation obligation will not start before pregnancy or be over immediately after birth. In addition to the gestational period, employers also have to be willing to consider accommodations, if requested, for: the period during which the employee is trying to get pregnant; the period of maternity leave an employee needs for their own medical condition; accommodations after the new mom returns to work, including but not limited to lactation accommodations; time off for miscarriages, stillbirths, or abortions.
    • Don’t let the FMLA control all decisions. The Family and Medical Leave Act (FMLA) requires covered employers to give employees unpaid leave of up to 12 weeks under certain circumstances. Prenatal care and maternity leave are among the many qualifying reasons for FMLA leave. Unfortunately, a lot of employers who are covered by the FMLA think that are ok as long as they have (1) complied with their FMLA obligations, or (2) determined that the FMLA doesn’t apply (for example, because the employee isn’t eligible yet). This has been a longstanding trap for employers in disability cases. It’s not unusual for an employer to focus exclusively on the FMLA and fail to consider disability-related reasonable accommodations under the ADA or other applicable disability rights laws. For example, an employer may terminate an employee who needs time off for cancer treatment because the employee hasn’t hit the full 12 months required for FMLA eligibility. Denying FMLA leave to an employee who is not eligible for FMLA leave doesn't violate the FMLA, but failure to grant the leave as a disability accommodation would violate the ADA.
    For more information, contact SESCO by 1-800-764-4127; sesco@sescomgt.com or via your Consultant of Record, Ms. Jamie M. Hasty, Vice President, jamie@sescomgt.com or 804-931-6281
  • Tuesday, October 15, 2024 9:00 AM | Anonymous member (Administrator)

    The following are state law updates that Illinois employers need to be aware of. Unless otherwise noted, the changes are effective January 1, 2025.

    Enhanced Workplace Rules for Minors Under 16

    • Employers are required to obtain an employment certificate authorizing a minor’s work. To obtain a certificate, an employer must first provide the minor with a notice of intention to employ, which then must be submitted by the minor to their school’s issuing officer, along with an application for the employment certificate, which must be filled out by the minor and their parent or guardian.
    • Employers must maintain, for at least the duration of the minor’s employment at the premises, the minor’s employment certificate, plus records that include the minor’s name, date of birth, address, and the notice of intention to employ the minor at the premises where the minor is performing the work.
    • In addition to the prohibited occupations found in the Federal Labor Standards Act, there are over 30 additional types of work that minors are prohibited from performing, including factory work and construction work.
    • All minors must be supervised in person by an adult 21 years of age or older at all times when the minor is working.

    AI Added to Human Rights Act

    • The Illinois Human Rights Act has been amended by adding certain uses of artificial intelligence (AI), including generative AI (GenAI), to the long list of actions by covered employers that could constitute civil rights violations.
    • The amendments will take effect January 1, 2026, and add two new definitions to the law.
    • According to the amendments, AI means “a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.”
    • The definition of AI includes GenAI, which has its own definition: “an automated computing system that, when prompted with human prompts, descriptions, or queries, can produce outputs that simulate human-produced content, including, but not limited to, the following: 1) textual outputs, such as short answers, essays, poetry, or longer compositions or answers; 2) image outputs, such as fine art, photographs, conceptual art, diagrams, and other images; 3) multimedia outputs, such as audio or video in the form of compositions, songs, or short-form or long-form audio or video; and 4) other content that would be otherwise produced by human means.”
    • According to the amendments, covered employers can violate the act in two ways. First, an employer that uses AI with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment and whose actions have the effect of subjecting employees to discrimination on the basis of protected classes under the act may constitute a violation. The same may be true for employers that use ZIP codes as a proxy for protected classes. Second, a covered employer that fails to provide notice to an employee that the employer is using AI for the purposes described above may be found to have violated the law.

    Voluntary Use of E-Verify Prohibited

    • Illinois Gov. JB Pritzker has signed Senate Bill 0508 into law. This new law provides additional employment protections for individuals flagged by an employment eligibility verification system, including federal E-Verify, as having identification discrepancies.
    • SB 0508 clarifies an employee’s rights in the event of an E-Verify “no match.” The new law will prevent employers from imposing work authorization verification requirements that are greater than those required by federal law.
    • Illinois employers are no longer be permitted to voluntarily use employment eligibility verification systems – e.g.,  E-Verify –  to confirm the I-9 authentication process, unless required by federal law.

    Amendments to the BIPA

    • Illinois Gov. JB Pritzker has signed Senate Bill 2979, which amends the Illinois Biometric Information Privacy Act (BIPA). The bill confirms that a private entity that more than once collects or discloses the same biometric identifier or biometric information from the same person via the same method of collection in violation of the BIPA has committed a single violation for which an aggrieved person is entitled to, at most, one recovery.
    • In addition, the bill also adds “electronic signature” to the definition of written release, clarifying that an electronic signature constitutes a valid written release under the BIPA.
    • The amendments take effect immediately.

    Amendments to Temporary Workers Law

    The Illinois Day and Temporary Labor Services Act has been amended for the third time in the last year. The amendments clarify employers' and staffing agencies' obligations on equal pay, notices, and more.

    Equal-Pay Requirement

    • Amount of work: The amendments clarify the amount of work that entitles a temporary laborer to equal pay. The original law stated the equal-pay requirement was effective once a temporary laborer had been "assigned" to a third-party client for 90 days. Equal pay is instead required after a temporary laborer "performs more than 720 hours of work in a 12-month period" for a third-party client, with the clock starting on April 1, 2024.
    • How to compute: The original law required equal pay to be determined using the rate of either (a) the third-party client's lowest paid, directly hired, similarly situated employee with the same or substantially similar seniority to the temporary laborer; or (b) the lowest paid, directly hired employee with the closest level of seniority to the temporary laborer (the "comparator"). The amendments still allows this "comparator" method, but as another alternative, for temporary laborers to be paid the median wages: of workers working in the same or a substantially similar job classification, as reflected in the detail level of the most recent Standard Occupational Classification System published by the United States Department of Labor's Bureau of Labor Statistics [BLS], in the same metropolitan area or non-metropolitan area of Illinois where the work is performed, as reflected in the most recent Occupational Employment and Wage Statistics Survey. Under this new option, once a temporary laborer has worked for the third-party client for 4,160 hours during a 48-month period, the required wages then increase from the median to the 75th percentile in the BLS data.

    Responsibility for Determining Equal Pay

    The amendments also clarify that it is the temporary staffing agency's responsibility to determine the amount of equal pay due, based on information provided by the third-party client, and to pay the temporary laborer correctly.

    Collective Bargaining Agreement Exemption

    Under the amendments, the equal-pay provision does not apply if the "comparator" employees (the third-party client's directly hired employees) are covered by a valid collective bargaining agreement.

    Equivalent Benefits

    The IDTLSA purports to entitle temporary laborers to a certain level of benefits after assignment to a third-party client for a certain amount of time. However, the provision remains enjoined and not in effect. The Illinois Department of Labor has appealed that decision. The case is pending before the U.S. Court of Appeals for the Seventh Circuit.

    Amendments to Non-Compete Law

    • The first amendment renders any covenant not to compete or covenant not to solicit entered into after January 1, 2022, unenforceable with respect to professionals licensed in Illinois who provide mental health services to veterans and first responders.
      • The second amendment provides that a covenant not to compete or not to solicit is void and illegal with respect to individuals employed in construction, regardless of whether an individual is covered by a bona fide collective bargaining agreement.
      • The amendments take effect immediately.

    In the meantime, we are also monitoring two house bills that would further amend the Illinois Freedom to Work Act: HB 4888, which provides that a non-compete or a non-solicit is not enforceable if it restricts an employee's ability to exercise his or her rights under federal law, and HB 5385, which would void all non-competes and non-solicits, regardless of the employee's annual compensation. Both of these bills have been referred to the Rules Committee.

    If dealers have any questions or concerns, we recommend they contact SESCO (a free CATA benefit) to ensure compliance.  For assistance, contact us at 423-764-4127 or by email at sesco@sescomgt.com

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)


    Last week, CATA Chairman Jason Roberts, CATA President Jennifer Morand, CATA EVP Chris Konecki, along with NADA Board Member Joe Massarelli (Liberty Auto City), traveled to D.C. to attend the annual NADA Washington Conference. It was a busy, successful couple days of meetings on Capitol Hill with key legislators and/or their Chief of Staff, including Congressman Raja Krishnamoorthi, Congressman Robin Kelly, Congressman Mike Quigley, and Senators Tammy Duckworth and Dick Durbin.

    The NADA briefed the CATA team on the key federal issues to relay to the legislators. The primary issues communicated were:

    1. FTC “Vehicle Shopping Rule” will overwhelm car buyers and small businesses with needless additional costs, paperwork (non-disclosure forms) and an overall lengthened sales process (estimated to be an additional 60-80 mins. longer than the current average time spent in a dealership). They urged members of Congress to cosponsor the FTC REDO Act to stop the flawed Vehicle Shopping Rule and avoid needlessly imposing significant burdens and costs on both the consumer and small business dealers.
    2. Legislators were made aware of the dealers’ stance on the current EPA De Facto EV Mandate which reaches too far and too fast. The EV infrastructure simply isn’t in place to require 56% of all new vehicle sales to be electric by 2032. Furthermore, the current EV prices are too high for the average consumer. The dealers are behind EVs and have already invested in EV infrastructure in their showrooms and in personnel to train them on the latest technology as it relates to sales and service, but they will sell what the market demands. And, at least for now given the lack of infrastructure and high EV prices, EVs just aren’t what the market is demanding.   

    The team did a wonderful job communicating these messages that were heard loud and clear in Washington!

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)


    Earlier this week, Hyundai Hope On Wheels, along with Chicago Auto Show Chairwoman and Webb Auto Group Dealer Kelly Webb Roberts, presented Lurie Children's a $400,000 Hope Grant and $250,000 Hyundai Young Investigator Grant. The Hope Grant and Hyundai Young Investigator Grant were presented to Dr. Loretta Li and Dr. Kevin McNearny from Lurie Children's Center for Cancer and Blood Disorders during a check presentation and Handprint Ceremony, the signature event of Hyundai Hope On Wheels, in which local children impacted by pediatric cancer dip their hands in paint and place their handprints on a white Hyundai Hope On Wheels vehicle to commemorate their personal stories of hope.

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)

    CATA Member Dealer River Front Chrysler Jeep Dodge Ram opened the first Dedicated Ram Truck Center in the Midwest. The center is set to cater exclusively to the sales, service, and customization needs of Ram Trucks and ProMaster Vans, further enhancing the dealership’s commitment to delivering specialized care and expertise for its truck and commercial van customers.

    Located at 1851 Orchard Gateway Blvd., North Aurora, IL 60542, this state-of-the-art facility is a one-stop shop designed to meet the growing demand for Ram's lineup of heavy-duty trucks and ProMaster vans, both for personal and commercial use. Whether you're in the market for a powerful Ram Truck, or the versatile ProMaster Van, the center is fully equipped with a wide inventory, dedicated service bays, and expert technicians focused solely on Ram vehicles.

    "Our new Ram Truck Center offers a truly unique experience for our customers," said Corey Spooner, General Manager of River Front Chrysler Jeep Dodge Ram. "From the moment they step inside, truck and van owners will find a dedicated team of specialists who understand the needs of these vehicles. This allows us to provide a superior level of service, sales, and support that’s unmatched in the region."

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)

    For any electric vehicle owner that would like a passenger license plate on their vehicle there will be an addition $100 surcharge on the registration.

    Fees

    Random-Number License Plate Fees

    Newly acquired vehicle/first-time issuance - $316 ($165 title fee + $151 registration fee)

    Currently titled vehicle/first-time issuance - $151 registration fee

    Current plates expire within 90 days - $180

    For more information, contact Joey White at Vitu.

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)

    On September 23, NADA Dealer Stellantis Representatives, NADA Executives, NADA’s Industry Relations team and members of the Stellantis National Dealer Council met with Carlos Zarlenga, Stellantis NA COO, and other key executives to share the results of the NADA Summer Dealer Attitude Survey and discuss dealer dissatisfaction that was made public in recent weeks. 

    Key issues were market share loss, rising inventories, dealer profitability, product quality and product pricing. Executive departures and multiple rounds of layoffs were also cited as contributing to dealer dissatisfaction. Dealers recommended the brand take bold and immediate action, simplify operations, and communicate a plan for future success.

    Mr. Zarlenga listened carefully as the dealers in attendance fleshed out aspects of each concern.  He responded that current issues had developed over time and have had long term impacts. He said the brand could not ask for blind trust from dealers and must earn trust back over time.  

    What’s Next: Dealers asked for Stellantis to share a plan that will result in an improved partnership and offer hope and assurances for the future. NADA will continue to support the actions of the Stellantis dealer council and monitor dealer feedback for reactions to Stellantis’ marketplace actions. NADA will directly re-engage with Stellantis as required. 

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)

    Compliance Alert: What Dealerships Need to Know About Corporate Transparency Act Reporting Requirements

    [From NADA] Under the Corporate Transparency Act (CTA), which went into effect on January 1, 2024, many business owners are required to file corporate transparency reports with beneficial ownership information (BOI) no later than January 1, 2025.

    The CTA reporting mandates are designed to bolster transparency and combat financial crimes. Those who fail to meet this deadline could face up to two years imprisonment and fines up to $10,000, in addition to civil penalties of up to $591 per day.

    Who needs to file:The CTA’s reporting requirements apply to “reporting companies,” which includes corporations, limited liability companies and any other entities created by the filing of a document with a secretary of state or any similar office in the U.S.

    • Filing exemptions: There are 23 categories of entities specifically exempted from the reporting requirements, including a “large operating company” exemption. A “large operating company” is an entity that (1) employs more than 20 full-time employees in the United States, (2) has an operating presence at a physical office within the United States, and (3) has filed a federal income tax or information return in the United States for the previous year demonstrating more than $5 million in gross receipts or sales.
    • Applicability to dealerships: It is likely that dealerships are exempt from the rule under the “large operating company” exemption and not required to file. However, separate corporations or limited liability companies associated with a dealership (i.e., a real estate holding company) may be required to file. Dealerships should work with an attorney or accountant familiar with their business and business structure to determine if an exemption applies and whether to file.
    • What information must be reported: A reporting company must disclose certain information about the reporting company itself, its beneficial owners and, for reporting companies formed on or after January 1, 2024, a maximum of two company applicants.”
    • How to file: Reporting companies must report beneficial ownership information electronically through FinCEN's website.

    Important deadlines: 

    • Businesses subject to the CTA and formed or registered in the U.S. before January 1, 2024, must file its initial BOI report no later than January 1, 2025.
    • Businesses subject to the CTA and formed or registered in the U.S. on or after January 1, 2024, and before January 1, 2025, must file its initial BOI report within 90 calendar days of its formation or registration becoming effective.
    • An entity subject to the CTA and formed or registered to do business in the U.S. on or after January 1, 2025, must file its initial BOI report within 30 days of its formation or registration becoming effective.

    To learn more about this reporting requirement, NADA is hosting a webinar on October 31 at 1:00 p.m. Stay tuned for more information. In the meantime, please also see the resources below.  

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)

    Northwoods University is encouraging dealers to consider nominating a deserving dealer principal for a Dealer Education Award. The award recognizes individuals who have made significant contributions to automotive marketing education over several years.

    Key points to consider when submitting a nomination:

    • Commitment to educating future automotive professionals
    • Consistent delivery of high-quality training and mentorship
    • Lifetime of outstanding contributions to automotive and dealership educatio.
    • The nomination deadline is October 11, 2024. Nominations can be submitted via this link: www.northwood.edu/forms/dea.

    The awards breakfast will be held during the NADA Convention in New Orleans on Saturday, January 25, 2025, from 6:45 a.m. to 8:15 a.m. at the Hilton New Orleans Riverside.

  • Friday, September 27, 2024 9:00 AM | Anonymous member (Administrator)

    As the year draws to a close, the CATA is happy to provide a list of dealership specific records retention rules. This list is provided by CATA Allied Member Woodward & Associates. Woodward proudly serves more than 300 new car dealers across the Midwest. For more information, please contact Scott Woodward at with any questions.

    Click HERE to download the Records Retention Rules list.

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