< Previous10SB 1159 extends similar presumptions for COVID-19 into the future by codifying the governor’s earlier Executive Order.For Dealers, SB 1159 creates a “rebuttable presumption” for workers’ compensation for COVID-19 for “outbreaks.” An “outbreak” is satisfied under the following conditions:• For employers with 100 employees or less, when 4 employees test positive for COVID-19 in a 14-day period.• For employers with more than 100 employees, when 4 percent of the employees test positive in a 14-day period.• For all employers if the workplace is ordered to close by public health authorities or Cal/OSHA due to risk of infection from COVID-19.SB 1159 also contains some reporting obligations that require employers to provide information about positive tests to their workers’ compensation carriers, and some pretty hefty potential civil penalties if an employer fails to do so.SB 1383 - Expansion of the California Family Rights Act (CFRA)In January, Governor Newsom announced his strong support for an effort to expand the CFRA to provide job-protected family and medical leave to more Californians. That proposal was inserted into SB 1383 and makes a number of significant changes to the existing CFRA.First, SB 1383 provides that CFRA applies to employers with five or more employees (the law currently applies to employers with 50 or more employees). This will significantly impact smaller employers who will have to get up to speed with all of the requirements and challenges of complying with the CFRA, and will entitle employees who work for such employers for up to 12 weeks of unpaid family and medical leave.Second, SB 1383 expands the definition of “family members” for whom leave can be taken under the CFRA to include, among others, siblings, grandparents, grandchildren, and adult children. This change will also impact larger employers already covered by the CFRA and may result in “stacking” of leave entitlement for employees under the federal Family and Medical Leave Act (FMLA). For example, an employer covered under both the CFRA and the FMLA would be required to provide up to 12 weeks of leave for an employee under the CFRA to care for a sibling with a serious medical condition. However, because “siblings” are not included under the FMLA, that same employee could be eligible for an additional 12 weeks of leave under the FMLA to care for a parent, child or spouse. This could result in such employees being eligible for a combined total of 24 weeks of leave under the CFRA and FMLA. SB 973 – Pay Data ReportingAs many employers will recall, during the Obama administration, the president proposed a requirement that certain large employers would be required to provide specified pay data as part of the federal Form EEO-1 reporting requirement. The Trump administration rescinded that rule, and several years of litigation followed. Following this litigation, the EEOC announced that it would collect such information for a limited period, but would not require such information to be provided in the future.California has long sought to enact a similar requirement on its own, purportedly in an effort to combat pay inequities in employment. Therefore, SB 973 (beginning in March 2021) requires employers with 100 or more employees to provide pay data information by race, ethnicity, and sex to the Department of Fair Employment and Housing. Employers have argued that this may create a false impression of discrimination, as the law provides many lawful and non-discriminatory reasons why an employer may pay people differently.SB 973 also provides that California Equal Pay Act claims may be enforced by the Department of Fair Employment and Housing, in addition to the Labor Commissioner’s office.Chris Hoffman is the founding and managing partner of the Fisher Phillips San Diego office. He has represented hundreds of employers in matters ranging from class action litigation, to traditional labor matters and general employment advice. He also co-chairs the Automobile Dealers Industry Group. Contact Chris Hoffman at choffman@fisherphillips.com or (858) 597-9610.11PORTFOLIO REINSURANCEMy Future.My Portfolio.“I am looking forward to a long future owning dealerships, and Portfolio is going to help me get there.” The Portfolio reinsurance platform is the best in the business. I truly own the reinsurance company, along with the underwriting profits and investment income. I control the investment strategy and have access to the cash through their generous loan policy. Unlike others, Portfolio doesn’t charge hidden fees and penalties. They are totally transparent. Their income development agents are real car people who move the needle in F&I. All this means I build personal wealth faster, and my Portfolio company is a big part of my financial future. © 2020 Portfolio Holding, Inc. All rights reserved.For a confidential conversation about reinsurance, contact:Ryan Hanlon, Managing Director(805) 275-2023 office(818) 599-3373 cellryan@portfolioco.comOCADA’s 56th AnnualGolf TournamentTThe 56th Annual OCADA Golf Tournament was a great day of golf at Mission Viejo Country Club. Golfers enjoyed reconnecting with old friends (at a social distance) and a day of golfing, contests, and fun sponsored festivities throughout the course. Thanks to the Golf Tournament Chairman Al Parajeckas and Association staff for planning an event with numerous safety protocols in place to keep attendees healthy and entertained.12ANNUAL13MANY THANKS TO OUR SPONSORSPLATINUM SPONSORS ACV Auctions BG PetroSpecs Inc. CARFAX Ferruzzo & Ferruzzo Portfolio GOLD SPONSOR GlassRatner Advisory & Capital Group SILVER SPONSORS Comerica Bank Fisher & Phillips, LLP MotorTrend Group Scali Rasmussen GOLDEN TEE SPONSORS automotiveMastermind BBVA Digital Motors Enterprise JM&A Group Spectrum Reach Vitu Zurich $50,000 HOLE-IN-ONE SPONSOR MOC Products Co., Inc. $25,000 HOLE-IN-ONE SPONSOR Wells Fargo Auto LONGEST DRIVE SPONSOR Dealer Protection Group STRAIGHTEST DRIVE SPONSOR EPIC Brokers CLOSEST TO THE PIN SPONSOR United Contractors TEE SPONSOR Callahan Thompson Sherman Caudill LLP GREEN SPONSOR Reynolds & Reynolds BREAKFAST SPONSOR COCKTAIL RECEPTION & LAWN BOWLING SPONSOR GOLF CART & GOODIE BAGS SPONSOR BAR SPONSOR MARGARITA BAR SPONSOR HELICOPTER DROP SPONSOR LUNCHEON ON THE GREEN SPONSOR TIKI BAR SPONSOR SPORTS BAR & $10K HOLE-IN-ONE SPONSOR DIAMOND SPONSOR 15Little did we know back in late 2017, when we first started discussing retail warranty reimbursement legislation with CNCDA, that CA would wind up with one of the strongest laws in the country, and that a large percentage of dealers would have availed themselves of its benefits in such a short amount of time. It took two legislative sessions, but AB 179, entitling dealers to retail reimbursement for their warranty claims, became effective on January 1, 2020.Since the law’s passage, we’ve had the privilege of working with more than a third of the dealers in the state, by performing over 700 submissions, and assisting these businesses to achieve a fair market rate of reimbursement for their warranty work. The results have been quite impressive, and are worth noting. So far, in just 10 months, Armatus has achieved approvals with 31 different manufacturers; the annual uplift for our dealer clients has averaged $276K for parts and $233K for labor. Bear in mind, that the dealers are doing the same work they’ve always done, but instead of being underpaid are now receiving an equivalent level of compensation from the manufacturer that they receive for their customer pay work.This is great news, but bear in mind, the California statute is not self-effectuating, meaning the manufacturer will not simply grant you a market rate of compensation. The law mandates a submission, and details what is required of the dealer in order to achieve retail.SEVERAL THINGS NEED TO BE CONSIDERED IN ORDER TO ENSURE THE BEST POSSIBLE RESULT:Thorough understanding of the law – The CA law is the most comprehensive retail warranty reimbursement statute in the country, and consequently it is very complex. Unless you have a complete understanding of the numerous nuances, you may not get what you are entitled to.Manufacturers’ interpretation of the law – Rest assured certain manufacturers will read the statute differently from you. Sometimes the positions they take are rather shocking, including those that will simply refuse to follow the law, or others that will attempt to include non-warranty-like repairs in a deliberate attempt to lower your mark-up.Following the manufacturer’s protocol – It’s critical to understand the factory’s guidelines for the inclusion or exclusion of various aspects of the submission; each of them have different rules, and they typically won’t disclose all of them to you. If you can determine what they are, you should follow them within reason; do not be combative, unless the manufacturer is being unreasonable.Optimization – Since your parts mark-up is tantamount to an annuity, it is imperative that you utilize the best available technology in order to achieve an optimal result, to ensure the proper selection of your submission sample – this is something that should not be left to chance. Missing your mark-up by even a few points can cost you thousands every year, perpetually. You should explore this aspect of your submission with some attention to detail – it will be worth it to you in the long run.Factory Submission Auditors – Beyond technology, however, is the need for a thorough audit process. Your declaration will be scrutinized by factory auditors that know every nook and16By Joe Jankowski, Armatus Dealer UpliftCalifornia Update: Retail Warranty Reimbursement17Lance, Soll & Lunghard, LLP | CPAs & Advisors | lslcpas.com | (714) 672-0022BreaSacramento“We have a fantastic relationship with the LSL team. They keep our interests top of mind and maintain a positive reputation in the industry.” Santa Ana -Craig Whetter, President, David Wilson Automotive Group (relationship since 1983) Donald Slater, CPA Automotive Services Partner donald.slater@lslcpas.comMike Mangold, CPA Automotive Services Partner mike.mangold@lslcpas.comDavid Myers, CPA Automotive Tax Partnerdave.myers@lslcpas.comcranny of countering retail warranty submissions, and you should have someone familiar with their techniques, in order to preempt or refute their sometimes-questionable positions. Here again, it is better to get along with these folks, and in many cases, this is not a problem; however, some manufacturers are very difficult.Factory Responses – In some cases your approval may not be smooth, and the manufacturer may rebut your calculations, or in some instances, summarily reject your submission. Responding in the proper manner is critically important, since it could be the difference between achieving a substantial increase in your warranty parts gross, or obtaining nothing at all. There are many dealers that have re-submitted two, three or four times over the course of a year or two, costing themselves multiple six figures in lost profit.The bottom line is that you have an extraordinary opportunity to receive a fair reimbursement for both parts and labor utilized in the warranty work you perform. If this process is approached in a judicious and professional manner, you can quite possibly double your warranty parts gross profit. There are many pitfalls for the uninformed, but tremendous upside for those that perform the submission process properly.Joe Jankowski is Managing Partner of Armatus Dealer Uplift, a Hunt Valley, Maryland-based firm specializing in retail warranty reimbursement submissions. Joe has been personally involved in consulting on 10 retail warranty statutes and is widely recognized as a subject matter expert in this highly technical arena. Previously, Joe spent more than 20 years as CFO, COO, and CEO of a large automotive group in Maryland.CONCERNED WITH THE COST, COMPLIANCE AND SERVICING OF YOUR DEALERSHIPS’ INSURANCE?EPIC CAN HELP WITH YOUR BENEFIT AND BUSINESS INSURANCE NEEDS• CNCDA's only licensed broker for Health and Business insurance• The largest insurer of auto dealers in the state• The only broker with proprietary products specific to dealerships • 15TH largest brokerage firm in the nationWe know dealerships have specific needs and issues, we are here to help. Please contact us for a free evaluation of your insurance and HR/compliance packages.EPIC IS© EDGEWOOD PARTNERS INSURANCE CENTER | CA LICENSE 0B29370EPICBROKERS.COMAlison McCallum 949.417.9136alison.mccallum@epicbrokers.comEric Kitei 949.417.9145eric.kitei@epicbrokers.comAS THE CNCDA’S ONLY LICENSED BROKER FOR HEALTH AND BUSINESS INSURANCE AND THE LARGEST INSURER OF AUTO DEALERS IN CALIFORNIA, EPIC IS UNIQUELY POISED TO HELPEarlier this year, we informed you that the DMV issued proposed draft regulations that would modify the requirement that dealers physically maintain records related to vehicle sale, rental, and lease transactions. The DMV proposed reducing the requirement to physically retain such documents from 18 months to 90 days.Although CNCDA was pleased with the DMV’s proposed modification, we’ve repeatedly asked the DMV to eliminate the requirement to physically retain such documents, which is antiquated and unnecessary in a world where many agreements are executed and retained through secure electronic processes. Following the DMV’s issuance of these draft regulations, we submitted a formal written comment, asking that the DMV abandon the physical retention requirement entirely.In September 2020, the DMV announced that it was adopting its proposed draft regulation. Effective October 1, 2020, dealers are only required to retain physical copies of documents related to vehicle sale, rental, and lease transactions for 90 days. After that, such documents may be stored exclusively in electronic format. (13 CCR section 272.02.)Dealers should note that this updated regulation only changes the physical retention requirement. The DMV still requires the three-year retention of such documents, and the Civil Code still requires that conditional sales contracts be retained for seven years, or the duration of the contract, whichever is greater. (Civil Code section 2984.5) After the first 90 days, however, physical retention is no longer required.DMV Changes Record Retention RequirementsBy Anthony Bento, Director of Legal and Regulatory Affairs, California New Car Dealers Association Next >