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The Illinois Treasurer requires all businesses and not-for-profits to file annual unclaimed property reports, due on May 1, 2024. Even if an entity is not holding any unclaimed property, it must still file a negative (no unclaimed property) report.
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The U.S. Department of Labor (DOL) has released the anticipated final rule defining Overtime Exemption requirements, including guaranteed salary requirements, for the White-Collar Exemptions: Executive, Administrative, Professional, and Highly Compensated.
Key provisions of the final rule are as follows:
Of noted importance, is the ability for employers to apply Non-Discretionary Bonuses and Incentive Payments (including a valid commission payment) to satisfy up to 10% of the guaranteed salary level requirement of $43,888.00 and then against future salary requirement increases. Please note that Non-Discretionary Bonuses and Incentive Payments, such as commissions, must be well defined and meet the DOL’s requirements under the regulation.
Have your HR contractor conduct an audit of all pay plans and subsequent exemption compliance. With this news, employees will be interested in challenging their pay plans and eligibility for significant overtime payments.
Consider pay plan options:
If you have further questions, SESCO clients receive a wage and hour compliance assessment at a CATA member discounted rate. Feel free to contact their experts at 423-764-4127 or email sesco@sescomgt.com.
On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 (along party lines) to issue a final rule banning employers from using noncompete agreements. The final rule bans new noncompete agreements with all workers, including senior executives, after the effective date 180 days after publication date (which is expected to be soon). Existing noncompete agreements may remain in effect for senior executives but will be unenforceable for all other workers after the effective date.
The new rule will prohibit dealers from imposing new noncompete agreements with workers or to enforce or attempt to enforce such agreements after the effective date.
The U.S. Chamber of Commerce immediately sued the FTC on the grounds that it exceeded its authority—the same basis that the two dissenting commissioners voted against the rule. The Chamber described the rule as an “administrative power grab.”
Area new light vehicle registrations increased 17.1% during the first three months of 2024 vs. depressed year-earlier levels. The national retail market was up 6.9%. Note: reported registrations in the First Quarter of last year were especially weak, likely due to registration processing delays. This contributed to the sizeable percentage increase in Q1 ‘24.
2024 Forecast: According to Auto Outlook’s forecast, registrations are now expected to exceed 318,000 units this year and increase 6.7% from 2023. That projection is 15% higher than the total in 2022 when the market was significantly impacted by product shortages but is still below the pre-pandemic level of 354,256 units in 2019.
Key determinants for the market: The shaded box on the right reviews the primary forecast determinants. Pent-up demand is still significant, and the area labor market is strong. Vehicle affordability is still a concern but should improve as the year progresses. As pointed out in the previous release of Auto Outlook, barring any unforeseen negative shocks (such as the possible escalation of conflict in the Middle East), we think the new vehicle market could be stronger than expected in 2024.
Tracking alternative powertrain sales: Area BEV registrations were up 6.6% in the First Quarter of this year versus a year earlier, and market share increased to 7.8%. Gains have levelled off during the past few quarters, however. Hybrid registrations exceeded 7,400 units in Q1 ‘24 and improved 81% versus year earlier. Plug in hybrid market was up 8% (see page 6).
Brands that fared best in early 2024: Among the top 25 sellers in the area market, Buick, Lexus, Honda, Mazda, and Cadillac had the largest percentage gains in the First Quarter of this year. Honda, Toyota, Chevrolet, Ford, and Hyundai were market share leaders.
Top 10 selling models in the Chicago area so far this year include: Honda CR-V, Toyota RAV4, Tesla Model Y, Honda Civic, Mazda CX-5, Hyundai Tucson, Ford F-Series, Nissan Rogue, Honda HR-V and Chevrolet Equinox.
Download the complete Q1 2024 Chicago Auto Outlook
Dealerships are always looking for ways to improve profitability in their stores with a trusted partner. Many of our current and past board members are leveraging services from Dynatron Software to increase their profitability in fixed operations, and they report that the results are outstanding.
With today's margin compression on the variable side and an increased focus on fixed operations, Dynatron has been proven to be the preferred partner to generate an increase in profit and retention to reinvest in your dealership(s) and people.
The document shows how Dynatron improves customer pay ELR revenue for their customers. From there, dealerships can take advantage of opportunity to file for a significant warranty labor rate or parts margin increase with Dynatron’s FileSmart solution.
You can schedule your 30-minute Zoom call to learn more by clicking on the QR Code on the attached or visiting Dynatron Software for CATA members.
Sincerely, Jennifer Morand CATA President
The IRS has several resources available to dealers and sellers for help with the navigation of the IRS Energy Credits Online tool. All dealers and sellers must be registered through IRS Energy Credits Online to be able to submit time-of-sale reports and register for advance payments.
· Publication 5867 Clean Vehicle Dealer and Seller Energy Credits Online Registration User Guide is an excellent manual to reference when registering for the first time. · For assistance allowing multiple users to be registered on behalf of the organization, use Publication 5902 Permission Management and Additional Authorization User Guide. This guide explains the different roles of each user and will walk through how to add additional users. · For instruction on how to submit time-of-sale reports, refer to Publication 5867-A Clean Vehicle time of sale reporting user guide.
· Publication 5867 Clean Vehicle Dealer and Seller Energy Credits Online Registration User Guide is an excellent manual to reference when registering for the first time.
· For assistance allowing multiple users to be registered on behalf of the organization, use Publication 5902 Permission Management and Additional Authorization User Guide. This guide explains the different roles of each user and will walk through how to add additional users.
· For instruction on how to submit time-of-sale reports, refer to Publication 5867-A Clean Vehicle time of sale reporting user guide.
For quick reference for IRS Energy Credits Online registration, how to submit time-of-sale reports, advance payments and credit transfers, see:
Questions and Help: If there are any questions or problems with submitting a time-of-sale report or registering with IRS Energy Credits Online, dealers can send an email to irs.clean.vehicles.dealer.info@irs.gov. The IRS may respond through email or a phone call to help resolve the issue.
Clear The Shelters PAWSitively Good Awards salute those who go above and beyond to help shelter animals. Kelly Keefe of Brilliance Subaru was presented with the award by LeeAnn Trotter from NBC.
Kelly started the “Rescue Dog for a Day” program in August 2021. Twice a week shelter dogs from Anderson Humane Society in South Elgin are posted on the Brilliance Subaru website and on social media. Then in July 2022 Kelly produced a documentary entitled “Promise Love” chronicling the dedicated rescue workers in Oklahoma and the dealership’s journey picking up the dogs for a mega adoption event at the store. Since that time, the dealership has been hosting bi-annual adoption events. Overall, Kelly and Brilliance Subaru have assisted in the rescue and adoption of 734 dogs.
For more information, you can watch the NBC 5 news segment here.
[From CATA Approved Partner Dynatron] Compare Your Dealership’s Performance to Your Manufacturer AND Your Competition with Dynatron’s Exclusive Report. You know who most of your direct competitors are, but do you know how well they are selling common services to customers? What about how your dealership’s common service sales penetration percentage compares to others with your same manufacturer? Seems like valuable information that would be nearly impossible to obtain…until now.
Dynatron Software has created a report leveraging our comparative data to show penetration percentages for 18 different common services across 31 OEMs. Are you ready to see how your dealership compares?
Download the REPORT for full access to Dynatron’s data insights!
The U.S. Department of Labor recently published a final rule clarifying the rights of employees to authorize a representative to accompany an Occupational Safety and Health Administration (“OSHA”) compliance officer during an inspection of their workplace. This new rule is effective on May 31, 2024.
The Occupational Safety and Health Act (“Act”) grants employees the right to have a representative present during OSHA inspections. One of the Act’s implementing regulations provides that a representative authorized by employees “shall be an employee of the employer.” However, the regulation also creates an exception for third-party representatives when “in the judgment of the Compliance Safety and Health Officer, good cause has been shown” why the third party is “reasonably necessary to the conduct of an effective and thorough physical inspection of the workplace.” The regulation points to two non-exhaustive examples – an industrial hygienist and a safety engineer. Further, an OSHA Standard Interpretation Letter concludes that an employee could authorize a person affiliated with a union or community organization to act as a third-party representative as such representatives make “a positive contribution to a thorough and effective inspection.”
A recent court decision challenged this interpretation in allowing union representatives, finding that OSHA’s existing regulation only permitted “employees of the employer” to be an authorized representative. Hence, the new rule was necessary to clarify the perceived conflict between the Act and its interpretation found in OSHA’s Interpretation Letter.
The new rule makes two changes.
Employer’s Action Items
With the new rule in place, employers should take several steps to protect their rights during an inspection.
If employers have any questions or concerns, we recommend they contact SESCO to ensure compliance. For assistance, contact the CATA’s contact at SESCO, Jamie Hasty at 423-764-4127 or by email at sesco@sescomgt.com.
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