OC DEALERCALIFORNIA DEALERS FACE WAVE OF NEW LABOR LAWS4th Quarter 2020, Volume 69, Issue 4PAGE 8CALIFORNIA UPDATE: RETAIL WARRANTY REIMBURSEMENTPAGE 16orange countyBusiness Transactions• Buy-Sell Agreements • DMV, BAR and other governmental approvals • Lender flooring and capital loan agreements • Entity formation and structure• Shareholder Agreements • Manufacturer approvals and relations • NMV non-profit association representationEstate Planning • Succession planning for business continuation • Family estate planning (wills and trusts)Tax• Property tax planning, audits and appeals • Federal estate and gift tax controversies with IRS • EDD audits BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICES FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations 3737 Birch Street, Suite 400, Newport Beach, California 92660 | PH: (949) 608-6900 | ferruzzo.comBusiness Litigation• Consumer Legal Remedies Act lawsuits• Sales and Service Agreements• Disputes before the CA New Motor Vehicle Board• Consumer claims regarding the sale/lease of autos• Manufacturer audit disputes• Hearings before the AQMD, RWQC and OSHAReal Estate• Dealership site acquisitions and lease agreements• Lender opinion letters• RelocationsEmployment Practices • Arbitration agreements• Wage and hour class action lawsuits• Private Attorneys General Act (PAGA) claimsFerruzzo & Ferruzzo, LLP began providing legal representation to new car and truck dealers nearly four decades ago. Over the course of that time, one of the central goals of the firm has been to remain rooted in our client relationships. With the strength of over 20 attorneys, we provide a spectrum of legal services to support every aspect of running and owning your new car and/or truck dealership. Each member of our team is available to service the needs of you and your dealership.WE'RE BRINGING THE 2021 SHOW TO YOU!All the excitement you love and expect from the NADA Show is coming to you virtually—dynamic speakers, franchise meetings, education sessions, dealer networking and, of course, the NADA Expo, the virtual dealer marketplace where business gets done.NADA SHOW 2021 IS GOING VIRTUALTuesday-Thursday, February 9-112712 PRESIDENT’S MESSAGEOCADA’S 56TH ANNUAL GOLF TOURNAMENT68NO REST FOR THE WEARY - CALIFORNIA DEALERS FACE WAVE OF NEW LABOR LAWSCALIFORNIA UPDATE: RETAIL WARRANTY REIMBURSEMENT1216ELECTED REPRESENTATIVES OF ORANGE COUNTY - POST-ELECTION UPDATEASK ALISON: CALIFORNIA’S INDIVIDUAL HEALTH COVERAGE MANDATE PENALTYWELCOME TO OUR NEW ASSOCIATE MEMBERS26DMV CHANGES RECORD RETENTION REQUIREMENTS182024OC DEALER is the Official Publication of the Orange County Automobile Dealers Association3737 Birch Street, Suite 220 • Newport Beach, CA 92660www.ocada.org • Phone: 949-428-5050orange county2420BOARD OF DIRECTORS PRESIDENT Scott WadeVilla Ford of OrangeVICE PRESIDENTJared HardinHardin Automotive GroupTREASURERJames GrahamSanta Margarita FordSanta Margarita ToyotaAUTO SHOW CHAIRMANDavid SimpsonSimpson Buick GMC Cadillac of Buena ParkSimpson Chevrolet Garden GroveSimpson Chevrolet Irvine DIRECTORSBen BonfoeyThe CAR GroupMiles BrandonCapistrano VolkswagenCapistrano MazdaK.C. HeidlerTom’s Truck CenterJohn OhLexus of WestminsterGeorge SaadTuttle-Click Automotive GroupEXECUTIVEDIRECTOR/SECRETARYJohn Sackrison4©2020 Orange County Automobile Dealers Association. All rights reserved. OC Dealer is published four times each year by OCADA and is the official publication for the association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the OCADA, its board of directors, or employees. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. OC Dealer is a collective work and as such, some articles are submitted by authors that are independent of OCADA. While OC Dealer encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission from OCADA. For further information, please contact OCADA.NEW LABOR LAW POSTERS REQUIRED IN 2021FREE WITH YOUR OCADA MEMBERSHIP AS A CONTINUED MEMBER SERVICE, OCADA WILL ORDER TWO COMPLETE UPDATED ALL-IN-ONE LABOR LAW POSTERS FOR EACH DEALER MEMBER - FREE OF CHARGE. PLEASE EMAIL JAIME@OCADA.ORG TO REQUEST YOUR FREE POSTERS. SAVE THE DATECNCDA NEW LAWS WEBINARS December 9 & 10 10:00 – 11:30 amDIGITAL MARKETING WEBINAR January 20 Tim Wilson, Former Head of Google Automotive orange countyWE ARE YOUR BEST CHOICE… Top 8 reasons Bellavia Blatt should handle your submission for Retail Warranty Reimbursement15263748Higher Warranty Reimbursement. Better Bottom Line.THE PIONEERS IN WARRANTY REIMBURSEMENT NATIONAL EXPERTISELeonard Bellavia and Steven Blatt have represented auto dealers across the nation for over 33is regarded as the pre-eminent authority for obtaining retail warranty parts and labor reimbursement in 45 states.EARNINGS REPUTATION ,snoitaicossa relaed etats yb dednemmocer si ttalB aivalleB sa dedrager ylediw era eW .ediwnoitan syenrotta dna sAPC-raw liater gniniatbo ot semoc ti nehw redael yrtsudni ehtranty reimbursement for parts and labor. HASSLE FREE!Our solution is turnkey. Our staff of analysts and attorneys do all of the work for you. As we submit on your letterhead, your manufacturer will not know that you have retained us, but we are there every step of the way.LEGAL STRATEGIESOur team of attorneys collaborate to identify optimum markup yields and legal strategies to ensure you receive the highest possible retail reimbursement.RESULTS Bellavia Blatt has successfully handled several thousand -er ruo ,ecneirepxe dehctamnu siht fo esuaceb dnA .sraey strap ytnarraw no sesaercni elbissop tsehgih eht dleiy stlusand labor. LAW FIRM ADVANTAGEOur fees are much lower than ”consultants” who take a the highest standards and have more resources and options available for favorable outcomes.KNOWLEDGEWe carefully analyze your data, retail repair orders and trends to ensure your warranty reimbursement on both parts and labor is maximized. We know everything there is to know about your state law, as well as your manufactur-er’s policy and procedure.MULTI-STATE EXCLUSIVEENDORSED PROVIDERor call 516-873-3000For more information, please reach us at info@DealerLaw.com or visit DealerLaw.com/warrantyOur average dealership client has realized $20,000 to $30,000 in additional profits per month. We will show you how to maximize your dealership's blue sky value.6President’s MessageScott WadeVilla Ford of OrangeWhat a year 2020 has been! We have experienced unprecedented lows – from fighting to have our showrooms open, to navigating the maze of new mandates, and all while trying to support our employees’ health, squash fears and maintain productivity. More recently we have also experienced a healthy rebound, as we’ve learned to stay lean and nimble during adversity. Through it all, the amazing entrepreneurial spirit of Dealers has shined bright this year.In the spring when government orders seemed to change by the hour, we provided OCADA members with the latest information and worked with our elected officials to navigate the many challenges. OCADA also worked closely with Spectrum Reach on a PSA campaign to support business in our Service Departments. The OCADA Free Employment Law Hotline has been a valuable resource for members to get advice from Fisher Phillips attorneys about difficult decisions that had to be made. Our association has been an active advocate and incredible information source, helping Dealers navigate this crazy year, all while fighting bad legislation that could have struck at the core of our franchise protection laws. Following last month’s election which resulted in Democrats holding 75% of California’s Senate and Assembly seats, their supermajority across the legislature was bolstered. It is now more important than ever to meet with our elected representatives to educate them on our industry and the huge impact our dealerships make on our county and the state economy. OCADA can provide you with important Economic Impact Reports to show your Representatives. Please find out who represents your dealership (see page 20 for a list of Orange County Elected Officials) and start communication now! While 2020 is not what I imagined when I became your President in January, I couldn’t be more proud of the important role your association played and the opportunity to represent our industry in a year that none of us will ever forget. “It is now more important than ever to meet with our elected representatives to educate them on our industry and the huge impact our dealerships make on our county and the state economy.” orange countyRunning a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. Bob Ludwig Senior Vice President robert.ludwig@bofa.com 949.287.0635bofaml.com/dealerMaking business easier for auto dealers.Especially now. “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2020 Bank of America Corporation. All rights reserved. 3235016 10-20-0330No Rest for the Weary - California Dealers Face Wave of New Labor Laws8By Chris Hoffman, Fisher & Phillips LLPThe California legislature passed some significant labor and employment legislation this fall. Here’s a quick rundown on some of the more critical new laws of which California employers need to be aware. AB 1867 – Supplemental COVID-19 Paid Sick Leave Earlier this year, Governor Newsom issued Executive Order N-51-20 mandating up to 80 hours of paid sick leave for “food sector workers” that work for employers with 500 or more employees. AB 1867 expands on that Order and does a few different things that affect Dealers. AB 1867 requires a similar supplemental paid sick leave for employers with 500 or more employees. The purpose is to ensure coverage of employers excluded from the leave requirements of the federal Families First Coronavirus Response Act.Employees who work for covered employers will be allowed to take paid sick leave for the following reasons:• The worker is subject to a federal, state or local quarantine or isolation order related to COVID-19;• The worker is advised by a health care provider to self-quarantine or self-isolate due to concerns related to COVID-19; or• The worker is prohibited from working by the hiring entity due to health concerns related to the transmission of COVID-19.Employers that are covered by AB 1867 must take prompt action. As a budget “trailer” bill, AB 1867 took effect immediately. AB 1867 also has a notice requirement and will necessitate changes to employee wage statements to reflect the new supplemental paid sick leave. AB 685 – Employer COVID-19 Reporting ObligationsAB 685 imposes a number of new reporting requirements on California employers related to COVID-19.Among other things, AB 685 provides that if an employer receives “notice of a potential exposure” to COVID -19, they are required to do the following within one business day:• Provide a written notice to all employees who were on the premises of the worksite at the same time as the qualifying individual within the infectious period;• Provide notice to any union representative;• Provide employees and union representatives with information regarding specified COVID-19 benefits to which the employee may be entitled to under federal, state or local laws; and• Notify all employees of the disinfections and safety plan that the employer plans to implement and complete per CDC guidelines.Also, Employers who experience an “outbreak” (as defined by the state) also must notify the local public health agency within 48 hours.SB 1159 – COVID-19 Workers’ Compensation PresumptionThere has already been much action this year related to COVID-19 and workers’ compensation coverage. In May, Governor Newsom issued a sweeping Executive Order, providing that a broad swath of California workers who contract COVID-19 are presumed to have a workplace injury covered by the workers’ compensation system. That Executive Order remained in effect only until July 5, 2020.For over 40 years, BBVA Compass has provided auto dealers with the exible and aordable commercial nancial solutions they need to operate asuccessful dealership: For your dealership Floorplan & real estate nancingEquipment financing & leasing optionsInventory & parts receivablesmanagement solutionsFor your customers Competitive retail nancing optionsQuick credit decisions & reliable fundingTerrance DempseyEugene Gonzalez Relationship Manager, Orange County Market 949-214-0017 Our experienced professionals are committed to helping you make your business more ecient and more protable — all with the added support of top-level customer service. 1-800-COMPASS • bbvacompass.comAll credit and accounts are subject to approval, including credit approval. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC. Give us a call today. Your business is built on service. So is ours. 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