1. business and industrial
2. energy
3. oil
4. oil and gas prices

1st Quarter 2015, Volume 56, Issue 1
T H E O F F I C I A L P U B L I C AT I O N O F T H E O R A N G E C O U N T Y AU TO M O B I L E D E A L E R S A S S O C I AT I O N
CNCDA
Dealer Day
March 25, 2015
PAGE 12
GET TO KNOW
YOUR LEGISLATOR:
ASSEMBLYMAN BILL
BROUGH
PAGE 20
CALIFORNIA LABOR
AND EMPLOYMENT LAW
DEVELOPMENTS IN 2015
PAGE 26
THREE KEY DIFFERENCES
BETWEEN MANAGING
AND LEADING!
F E R R UZZO & FERRUZ Z O
LLP
ATT OR N EY S A T L AW | Our Practice Is Rooted In Strong Relationships
Representation of New Vehicle Dealerships
Ferruzzo & Ferruzzo, LLP has represented new vehicle dealerships for the past thirty years, along with
providing advice to most of the Dealership Associations in Orange County. We use that experience to partner with you to drive business orientated legal decisions.
Our services include:
Transactions for Dealerships




Negotiating and Drafting Buy-Sell Agreements
Negotiation of Computer Software, & Hardware agreements
Real Estate Acquisitions and Financing
Negotiation of Executive Compensation
Agreements and Buy-Ins





Estate Planning for Dealers
Negotiating Capital Loan and Lender Agreements
Relocations
Negotiating Government Loans and Incentive Agreements
Dealings with Manufacturers
Litigation Support



Protests before the New Motor Vehicle Board
Customer Dispute Resolution including lemon law claims
Hearings Before DMV, AQMD, RWQC, OSHA,


Litigation in all State and Federal Courts
Represented Dealerships in seven of the Arbitrations in
California regarding the GM Bankruptcy
BUSI N E SS L A W | L ITIG ATIO N | E S T A T E PLA NNI NG | R E A L E S T A T E | T A X
A Limited Liability Partnership, including Professional Corporations
949.608.6900 | ferruzzo.com
CONTENTS
6
AN INTERVIEW WITH 2015 OCADA PRESIDENT ALLEN MOZNETT, GM AT TOYOTA OF ORANGE
10
CNCDA DEALER DAY
MARCH 25, 2015
12
GET TO KNOW YOUR LEGISLATOR:
ASSEMBLYMAN BILL BROUGH
13
INTRODUCING OCADA’S NEW MEMBER SERVICES & GOVERNMENT AFFAIRS MANAGER
14
OC Dealer is a publication of Media
Communications Group and is the of ficial
publica t ion of Or ange Coun t y Au tomobile
Dealers Association. OC Dealer is published 4
times per year by Media Communications Group.
The statements and opinions expressed herein
are those of the individual authors and do not
necessarily represent the views of OC Dealer,
or its publisher Media Communications Group.
Any legal advice should be regarded as general
information. It is strongly recommended that one
contact an attorney for counsel regarding specific
circumstances. Likewise, the appearance of
advertisers does not constitute an endorsement
of the products or services featured by Media
Communications Group.
NADA FORECAST:
NEW-CAR SALES TO RISE TO 16.94
MILLION IN 2015
20
CALIFORNIA LABOR AND EMPLOYMENT
LAW DEVELOPMENTS IN 2015
26
THREE KEY DIFFERENCES BETWEEN
MANAGING AND LEADING!
6
AN INTERVIEW WITH BRUCE HAMLIN
4 Calendar of Events
6 President’s Message
11 OCADA Welcomes Our New Dealer and
OC DEALER is a Publication of the Orange
Associate Members
County Automobile Dealers Association
Protect
Your Franchise – Support the
3737 Birch St., Suite
220
OCADA-PAC!
Newport Beach, CA 92660
19th Annual OCADA Automotive Technology
www.ocada.org
Competition
Phone: 949-428-5050
Fax: 949-428-5054
OCADA Annual Meeting
13
TECHNOLOGY COMPETITION
14
OCADA ANNUAL MEETING
Visit us Online!
12
13
14
OCADA
www.OCADA.org
3
Calendar of Events
BOARD OF DIRECTORS
PRESIDENT
Allen Moznett
Toyota of Orange
VICE PRESIDENT
John Oh
Lexus of Westminster
TREASURER
K.C. Heidler
Kia Depot
Tom’s Truck Center
AUTO SHOW CHAIRMAN
Cliff Allen
March 25, 2015
CNCDA Dealer Day
Hyatt Regency Sacramento
May 11-12, 2015
AIADA International Auto Industry Summit
Washington, DC
June 8, 2015
Annual OCADA Golf
Tournament
Mesa Verde Country Club
Allen Cadillac GMC and Hyundai
DIRECTORS
Miles Brandon
Capistrano Volkswagen
Michael Kitzmiller
Ford and Mazda of Orange
James Renick
Renick Cadillac Subaru
Ben Rodenkirk
Norm Reeves Acura Mission Viejo
David Simpson
Simpson Buick GMC
Simpson Chevrolet of Garden Grove
EXECUTIVE
DIRECTOR/SECRETARY
John Sackrison
© 2015 Orange County Automobile Dealers Association | The newsLINK Group, LLC. All
rights reserved. OCDealer is published four times each year by The newsLINK Group,
LLC for the OCADA and is the official publication for this 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 the publisher. Likewise, the
appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. OCDealer is a collective work and as such some articles are submitted by authors that are independent
of the OCADA. While OCDealer 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 or The newsLINK Group, LLC. For further information, please
contact The newsLINK Group, LLC at: 855-747-4003.
4
OCADA
Interesting OC
Auto Fact:
176,803 new vehicles
were sold in Orange
County in 2014.
every turn.
Reach
OC
car
buyers
Reach OC car buyers
at at
every
turn.
every
turn.
print to online to mobile media, our
ising vehicles fire on all cylinders.
ork of websites and newspapers
he most in-depth coverage relevant to
County communities.
From print
to online
media,
ourno one beats our lineup of advertising opportunities.
From print
to onlineto
to mobile
mobile to special
events,
Contact
ustargeting
today about
packages targeting the consumers you want to reach.
advertising
vehicles
firecustomized
on all cylinders.
customized
package
rs you want to reach:
Special Advertising Supplement
ative
adnetwork
units
Our
of websites and newspapers
Los Angeles Times Certified Pre-Owned Vehicles. Publishes March 12, space closes March 3.
le provide the most in-depth coverage relevant to
Orange County communities.
activation
LA Times Signature Events
Print And Digital
om publications
• Festival of Books
•
Los
Angeles
Times
Create a customized package targeting
• The Envelope Screening Series
• you
Dailywant
Pilotto reach:
consumers
• The Taste
•
Huntington
Beach
Independent
• Innovative ad units
• Laguna Beach Coastline Pilot
• Mobile
• Event activation
• Custom publications
To advertise or more information, contact Kevin Davis
at 714-966-7503 or [email protected]
ertise in this section,
Kevin Davis at 714.966.7503
To advertise in this section,
[email protected]
contact Kevin Davis at 714.966.7503
or [email protected]
An Interview with 2015 OCADA
President Allen Moznett, GM
at Toyota of Orange
Did you always aspire to be part
of the automotive industry? Give
us a brief history.
Not always. I had the opportunity
as a young man to work in a car
dealership between semesters in
college. I almost immediately fell in
love with the business. Since that
time, that is the only job I have held
since.
Describe your background. What
did you study in school? Have
you always lived in California?
Yes, I am a native Californian. I
was born in Northern California,
and I grew up in a small farming
community in the area of Lodi. I
went to school in San Diego, where
I studied and got a degree in the
field of psychology.
6
OCADA
What’s the most rewarding part
of your career?
The most rewarding part of my
career is the relationships that
I have made that have helped
to forge my passion for selling
cars and serving my guests. It’s
not only the people that I have
done business with, but it’s also
the people that I’ve worked with
over the last 20-plus years in the
business.
Are there any individuals that
have inspired you over the years?
The person that got me into
the business was my college
roommate’s dad, Gary Gray. I
wanted to work in the car business
and made it my profession because
of Gary. Another mentor of mine is
David Wilson, who I currently work
for. He has inspired me to become
a leader and has been a role model
to not only myself but to countless
others in the business.
What challenges have you faced?
In 2006, as a brand new General
Manager, the first job I had was
to help open an $80 million Lexus
dealership in Newport Beach. It
was challenging, but exhilarating
at the same time. I encountered
other challenges with the Toyota
business after the tsunami, as well
as with the economic conditions
in 2008. I learned from one of my
mentors that it is through the
challenges one faces that the
character of the individual is built.
I’ve always looked at my challenges
as opportunities to improve.
Where do you think the auto
industry is headed in the short
term, and the long term?
The industry is in a very interesting
time. We have seen the rise of
the super corporation buying
dealerships at record pace. We’ve
seen a proliferation of social media
and online usage rise to levels that
even five years ago would have
been thought to be unheard of.
Our business is evolving before our
eyes in a manner that we’ve never
seen. In the short term, it presents
challenges for all of us to improve.
In the long term, it provides a
tremendous platform for each car
dealer to improve processes and
embrace technology to help drive
our business forward.
fashion. We will be first to relay info
in terms of legislation, in terms of
regulation, and in terms of union
business.
What keeps you involved in
OCADA? What inspired you
to serve as a leader in the
Association?
I am inspired to continue my
involvement in OCADA because I
feel the responsibility as a leader
of a dealership to give back to the
community in general, to try and
improve the state of our business
where possible, and to assist other
dealers through challenges that
they may face.
What do you think makes OCADA
membership invaluable?
OCADA brings issues forward to
dealers that may otherwise not
have information available to them.
It affords dealers the opportunity
to rely on and lean on experience.
OCADA staff members are available
to assist dealers in operations of
their respected stores, through
legal issues that arise.
What will OCADA do to
continue uniting dealers and
strengthening the voice of the
industry in the coming months?
OCADA will be at the forefront
of matters that confront dealers
in both a positive and negative
Describe your all-time favorite
ride (it can be one you’ve owned,
or something on your wish list).
And what are you driving today?
When I went to college, my parents
sent me in a 1964 Mustang Coupe.
I drove that car to school and loved
every minute I was in it.
I drive a Toyota Tundra today, and
it’s one of the best vehicles I’ve ever
driven.
Tell us about your family.
I have a wonderful family and
we live in Laguna Niguel. I have
three beautiful children: a 10-yearold daughter named Isabella, a
14-year-old son named Maxwell,
and a 16-year-old daughter named
Allison. My beautiful wife, Shawna,
who was blessed with the patience
of Job, has been married to me for
18 short years.
What’s your favorite way to
spend your free time? (We don’t
imagine you get much of it!)
It sounds cliché, but it’s true; I like
to spend time with my family. I also
like to play the occasional round of
golf (not very well) and travel with
the family.
OCADA
7
$
0
.
1
"
/
:
- - 1
$ & 3 5 * ' * & % 1 6 # - * $ " $ $ 0 6 / 5" / 5 4
$&35*'*&%16#-*$"$$06/5"/54
50th Anniversary
1964-2014
“Value for your money, quality for your time”
CNCDA Dealer Day
March 25, 2015
Be a Leader and Join the OC Delegation to
Dealer Day
O
ur legislative success is driven by dealers
who meet with the elected officials who
write and pass the laws we must live by
and operate our dealerships under. Dealer
Day is our opportunity to educate them on the retail
automotive industry, our issues and make them aware
that we are engaged and organized.
10
OCADA
Our State Senators and Assembly members take
notice when a group of industry leaders take the time
to travel to Sacramento to meet with them, so it is a
worthy investment of your time. OCADA believes so
strongly in the importance and effectiveness of Dealer
Day that we provide private air travel to minimize the
challenges and time to participate.
Please join your fellow automotive leaders on March
25th and travel with us to Dealer Day. Your leadership is
needed to protect and advance our industry!
OCADA
11
Get to Know Your
LEGISLATOR:
Assemblyman Bill Brough
73rd Assembly District:
Includes the cities of Aliso Viejo, Capistrano Beach,
Dana Point, Ladera Ranch, Laguna Hills, Laguna Niguel,
Mission Viejo, Rancho Santa Margarita, San Clemente,
San Juan Capistrano, Silverado, Trabuco Canyon
Committee Membership:
Veterans Affairs - Member
Jobs, Economic Development and the Economy –
Member
Revenue and Taxation – Vice Chair
Accountability and Administrative Review - Member
Personal:
Bill and his wife live in Dana Point, California with their
two children.
Biography:
Bill Brough was elected to the California State Assembly
on November 4, 2014. Previously, Bill served on the
Dana Point City Council from 2010-2014 and operated
12
OCADA
a government affairs consulting firm from 2005-2014.
Bill has served in a variety of capacities including Chief
of Staff to California State Assemblywoman Diane
Harkey (73rd AD,) as the White House Liaison at the
Department of Veterans Affairs in Washington, D.C.
in the Bush Administration, and as a Congressional
Aide to former Congressman Chris Cox. After high
school, Bill enlisted in the U.S. Army, serving on active
duty from 1986-1990, 1991 and graduated from the
University of Connecticut in 1995.
District Office Contact Information:
Orange County District Office:
29122 Rancho Viejo Road, Suite 111,
San Juan Capistrano, CA 92675
Phone: (949) 347-7301
Email: [email protected]
Website: [email protected]
Introducing OCADA’s
New Member Services &
Government Affairs Manager
Gladys Rojas is a new member of your OCADA team and joins us as the Member Services & Government Affairs
Manager. Her previous position was at the Irvine Chamber of Commerce, where she worked in several departments
to include Economic Development, Government Affairs, Membership Services, and the Irvine Chamber Education
Foundation. Prior to the Irvine Chamber, Gladys served 4 years on active duty in the U.S. Air Force as an Aircraft
Mechanic and then joined the Air Force Reserves as an intelligence analyst. Gladys attended the University of
California, Irvine for her undergraduate degree in Political Science, with a minor in International Relations.
JUST PUT IT ON
THE COMPANY
CARD…NOBODY
WILL NOTICE.
THEY’RE WORRIED
ABOUT OVERTIME.
I’M JUST WORKING
OFF THE CLOCK.
What you don’t hear
can still hurt you.
YOU’RE REALLY
SHOWING OFF
YOUR BEST
ASSETS TODAY.
I NEVER WEAR
THE SAFETY
GOGGLES. THEY
LEAVE A MARK.
The things employees say when you’re
not around can cause legal troubles
for you. Fisher & Phillips provides
practical solutions to workplace legal
problems. This includes helping you
find and fix these kinds of employee
issues before they make their way from
the water cooler to the courthouse.
2050 Main Street • Suite 1000 • Irvine, CA 92614 • 949.851.2424 • www.laborlawyers.com
ATLANTA
BALTIMORE
BOSTON
CHARLOTTE
CHICAGO
CLEVELAND
COLUMBIA
COLUMBUS
DALLAS
DENVER
FORT LAUDERDALE
FISH-216 NewsLinkAutoPub-7.5x4.75.indd 1
GULFPORT
HOUSTON
IRVINE
KANSAS CITY
LAS VEGAS
LOS ANGELES
LOUISVILLE
MEMPHIS
NEW ENGLAND
NEW JERSEY
NEW ORLEANS
ORLANDO
PHILADELPHIA
PHOENIX
PORTLAND
SAN ANTONIO
SAN DIEGO
SAN FRANCISCO
TAMPA
WASHINGTON, D.C.
10/4/13 10:09 AM
OCADA
13
NADA Forecast:
New-Car Sales to Rise to 16.94 Million in 2015
T
he National Automobile Dealers Association
forecasts 16.94 million new cars and light
trucks will be purchased or leased in the
United States in 2015.
“Rising employment and wages, continued low
interest rates and lower gasoline prices all signal an
increase in new light-vehicle sales in 2015,” NADA Chief
Economist Steven Szakaly said today at a press briefing
ahead of the NADA / J.D. Power Western Automotive
Conference in Los Angeles.
14
OCADA
“The economy will continue to build on the solid
growth established in 2014, and we also expect the
fundamental conditions to improve in the year ahead,”
he added. “Gross domestic product will grow at 3.1
percent in 2015, with the potential for growth to
exceed our forecast.”
Szakaly added that new-car sales rising above 17
million units in 2015 would require a ramp up in
incentives and an increase in new-car purchases by
millennial shoppers above what has occurred over the
past two years.
With nearly seven weeks remaining
this year, NADA’s original sales
forecast of 16.4 million new-cars
and light-trucks for 2014 remains
on target with an expected healthy
finish in sales in November and
December. GDP will grow at 2.1
percent in 2014, with inflation
remaining well tamed as the year
ends, Szakaly said.
Employment and Wages
On the positive side, employment
will continue to increase. “Growth
is now well above 200,000 jobs
per month, and our forecast for
employment growth is 242,000
new jobs on average per month in
2015,” Szakaly said.
“This improvement in the labor
market should also benefit wages
and incomes. This growth will be
moderate, with disposable income
rising by 2.5 percent in 2015,” he
said. “Conversely, corporate profits
are expected to increase by a
healthy rate of 6.7 percent.”
Interest Rates and the Fed
NADA’s 2015 forecast, in part,
is predicated on interest rates
remaining low, Szakaly added. “The
Federal Reserve is expected to raise
interest rates in 2015, but the rate
rise will be small,” he said. “The Fed
policy rate will move to 1 percent
by October 2015, with further
movements in rates expected
during the second half of 2016.”
In addition, NADA expects longterm rates on auto loans to rise in
2015, though not sufficiently to
dampen its sales outlook. NADA
expects rates on auto loans to rise
by about 125 to 150 basis points
by Dec. 31, 2015. This rise will be
steady over the course of the year,
he said.
Inflation
While talk of wage increases often
leads to discussions about the
Rising employment and
wages, continued low
interest rates and lower
gasoline prices all signal an
increase in new light-vehicle
sales in 2015.
possibility of inflation, Szakaly
says there are other factors that
will counter any effect from rising
wages. For example, “declining
demand from emerging markets
for commodities and raw
materials, especially China, will
ease pressure on prices for U.S.
companies,” he said. “In addition,
a stronger U.S. dollar will further
dampen inflationary pressure
by maintaining downward
momentum on import prices for
goods and services.”
Gasoline Prices
Another positive: oil and gasoline
prices are expected to remain weak
through 2015 because of the recent
market share war that began in
Saudi Arabia, Szakaly said. NADA’s
current forecast is for West Texas
Intermediate (WTI) crude to
average $71-$73 per barrel in
the first half of 2015, rising to an
average of $83 for the second half
of 2015.
“Lower oil prices, which translate
into lower prices at the gas
pump for consumers, increases
household spending on other
goods and services, resulting in
higher growth,” Szakaly said. “If oil
and gasoline prices remain low
through 2015, we could easily see
consumers return in even greater
numbers to the light-vehicle
market during the second half of
2015.”
Forecast Risks
Szakaly cautioned that there are
a few global macroeconomic
concerns to the GDP forecast in the
United States, such as conditions in
China and Europe, but they will not
likely derail U.S. economic growth.
In particular, growth in China will
slow to an average GDP rate of 6.4
percent in 2015 and 5.9 percent
in 2016. “This has the potential to
harm U.S. exports and hurt profits
at companies that are dependent
on the market in China,” he said.
In addition, growth in the Eurozone
is expected to be weak with GDP
likely to grow at only 1.4 percent
in 2015. “This may further dampen
demand for U.S. goods and
services,” Szakaly said.
In the United States, rising interest
rates could cause a slowdown in
the housing market. “In particular,
existing home sales are expected
to remain sensitive to interest rate
rises, more so than new vehicles,
and could easily dampen activity
in new-home construction and
reduce sales of light trucks,” he
added.
OCADA
15
MORE DEALERSHIPS CHOOSE DMVDESK
”
GAIN A STRATEGIC ADVANTAGE FROM THE LEADING REGISTRATION SOLUTION.
DMVdesk has helped us
save time and money while
enabling us to provide a
superior customer experience.
Their software really is a
fast and easy solution. They
have provided us outstanding
customer service, and their
tools are fast and easy to
use. DMVdesk has greatly
assisted us in cross training
personnel and in becoming
more efficient.
— Dave Moeller, City Toyota
and South Bay Honda
CNCDA Chairman
”
Protect CSI scores: customers appreciate plates and stickers delivered within days.
Save money: advanced F&I tools, highest eFile rate, and lowest average penalties.*
Save time: increased processing efficiency and immediate problem-solving assistance.
Increase employee satisfaction: 24/7 service, training, and staffing support for gaps.
Keep in Compliance: monthly Account Executive visits and ongoing reviews
help maintain peak DMV compliance.
DMVdesk works in partnership with dealerships, the DMV, and CNCDA to deliver
seamlessly integrated service backed by a commitment to continuous improvement.
DMVdesk is also partnering with CNCDA to advance dealership interests
in Sacramento and throughout the state.
SCHEDULE YOUR DMVdesk DEMO TODAY.
1-877-DMV-DESK (877-368-3375) or www.DMVDESK.COM
* Based on monthly reports provided by the California DMV, and based on California DMV
penalty reports for all dealerships during Fiscal Year 2012 & 2013.
REV UP YOUR
FINANCIAL OPERATIONS
2015 WORKSHOP
FOR CFOS AND CONTROLLERS
DATE
June 18–19
Learning from your peers: It’s what you do in your 20 groups.
LOCATION
Couldn’t your accounting team benefit from a similar event? Our
Planet Hollywood Las Vegas
tenth annual workshop is designed to help CFOs and controllers at
For more information or to register, visit:
auto, truck, RV, and heavy equipment dealerships nationwide share
best practices, learn about vital accounting and tax issues, and
much more. Space is limited—reserve a spot soon.
www.regonline.com/2015DSWorkshop
CPE credit available upon request.
W W W. M O S S A DA M S .C O M /AU T O M O T I V E
Whether your concern is dealership CSI, getting
more done in less time or compliance…
NEXT rethinks every aspect of your needs by
bringing you major enhancements in speed, ease
of use, accuracy and simplicity.
Discover NEXT at
AVRS.COM/NEXT
Your Success...
Is Our Success
For over 40 years we have been committed to our dealer clients
providing them with the highest quality tax, accounting, consulting,
and management support services in a timely, responsive manner.
With several years of dealership experience at the shareholder level,
our firm’s pro-active outlook, our business management and strategicplanning expertise, and our focus on the importance of tangible
results ensures that you have a partner on your team that will help you
optimize your business operations, minimize exposure to taxes, and
assist you with estate planning and dealer succession opportunities.
Let us be part of your team and see how we can make a difference.
1067 Park View Drive | Covina, CA 91724 | (626) 858-5100 | Fax (626) 332-7012
Dale E. Duncan, CPA
Shareholder
(626) 858-5100, ext. 226
[email protected]
George R. Applebaum, CPA
Shareholder
(626) 858-5100, ext. 215
[email protected]
Scott M. Biehl, CPA
Shareholder
(626) 858-5100, ext. 229
[email protected]
Andy R. Jones, CPA
Shareholder
(626) 858-5100, ext. 237
[email protected]
California Labor and
Employment Law
Developments in 2015
By Christopher C. Hoffman and Collin D. Cook, Fisher & Phillips LLP
California’s New Mandatory
Paid Sick Leave
B
eginning on July 1, 2015,
California’s automobile
dealers, with limited
exceptions, must grant every
employee 24 hours or three paid sick
days each year.
20
OCADA
Entitlement To Paid Sick Leave
California employees are entitled to
accrue paid sick leave after they have
worked in the state for 30 or more
days within a year of the start of their
employment. This includes full-time,
part-time, seasonal, per diem, and
temporary employees. Unlike other
leave laws, there is no exemption for
“small” employers, so all Dealers must
provide paid sick leave, subject to
limited exceptions.
Accrual Of Sick Leave
After the introductory 30 day period,
employees accrue one hour of
paid sick leave for every 30 hours
worked, including overtime hours.
to allow more than 24 hours of paid
sick time to equate to three work days
of paid leave per year. Similarly, parttime employees working less than
eight-hour days may take more than
three work days, up to the statutory
limit of 24 hours per year.
Dealers may cap the total amount of
accrued paid sick time at 48 hours or
six work days. Employees are entitled
to carry over accrued but unused
sick days into the following year,
subject to the 48 hour/six-day accrual
cap. However, employees are not
entitled to be paid for accrued but
unused sick days upon resignation
or termination. Nevertheless, if you
rehire an employee within a year
of separation, the Dealership must
reinstate any unused sick leave that
was previously accrued.
Tracking the accrual, use and carry
over could prove very challenging,
and there is an alternative. Dealers
may also “front load” three days of sick
leave at the beginning of each year. If
this option is selected, no carry over is
required.
Employees can decide the amount of
sick time they wish to use, although
Dealers may set a reasonable
increment of use, not to exceed two
hours. Dealers also may limit use of
paid sick leave to 24 hours or three
work days per year.
For those with an alternative
workweek schedule, such as
technicians, Dealers may be required
Calculating The Rate Of Pay
For non-exempt employees, paid
sick leave is normally calculated
at the employee’s effective hourly
rate of pay. For exempt employees
and those with variable pay rates,
including those paid on a commission
or piece rate, the rate of pay is
calculated by totaling the employee’s
wages, excluding overtime premium
pay, and dividing by the employee’s
total hours worked in the full pay
periods of the 90 days prior to taking
leave. This means that rates cannot
be based upon the prior year’s
average earnings, and will fluctuate.
Covered Uses
Employees may use paid sick leave
to seek preventive care or for the
diagnosis, care, or treatment of their
own existing health condition or
that of a family member. Covered
family members include a spouse,
registered domestic partner,
children (regardless of the child’s
age or dependency status), parents
(including step-parents and parentsin-law), grandparents, grandchildren,
and siblings. Paid sick days are also
available for employees who are the
victims of domestic violence, sexual
assault or stalking.
Changes For Dealers Currently
Offering PTO Or Paid Sick Leave
Even Dealers who already offer paid
sick leave or paid time off (PTO) will
likely need to revisit their policies.
In particular, Dealers must ensure
that their current policies: 1) satisfy
the accrual, carryover, use, and
reinstatement requirements of the
law; and 2) provide no less than the
minimum amount of paid sick time
required by law.
Notification And Recordkeeping
Requirements
Dealers must provide employees with
written notice of their right to accrue
paid sick leave under the new law, as
follows:
1. Poster: Starting January 1,
2015, display a poster informing
employees of their right to accrue
paid sick leave under the new
law. This poster is available on
the Division of Labor Standards
Enforcement (DLSE) website.
2. Wage Theft Prevention Act
Notice: Revise this notice which
is provided to all new hires to
include information regarding
employees’ rights to paid
sick leave under the Healthy
Workplaces, Healthy Families Act.
3. Itemized Wage Statements:
Provide written notice of the
amount of paid sick leave
available for use or the amount
of PTO that your Dealership
provides in lieu of sick leave.
Alternatively, this information
continued on page 22
OCADA
21
continued from page 21
may be provided in a separate
writing on the employee’s pay
date at the time wages are paid.
Dealers also face new recordretention requirements. Employee
usage and accrual of paid sick leave
must be documented and retained
for at least three years, and the
records must be made available for
employee inspection within 21 days
of a written or oral request.
Shared Exposure for
Violations Committed by
Contractor
Beginning January 1, 2015 California
law requires that “client employers”
22
OCADA
with at least 25 employees that utilize
at least six temporary workers from
staffing contractor to share certain
compliance responsibility and liability
with the companies that provide
them with contract labor.
Dealers can face liability for the
contractor’s failure to: 1) properly
pay wages; 2) secure workers’
compensation insurance; and 3)
comply with workplace safety laws.
This opens the door for significant
new litigation risk as affected workers
are permitted to pursue civil actions,
including class actions, against
Dealerships for the labor contractor’s
failure to comply with California wage
and safety laws.
If you use workers from a staffing
provider, you may be able to avoid
liability for the contractor’s failure
to pay wages or provide workers’
compensation coverage through
an indemnification clause in the
Dealership’s contract with the
provider. However, you cannot
absolve or contract away your legal
duties or liabilities under workplace
safety laws. Given this new exposure,
we highly recommend that all third
party contracts be reviewed and
revised as necessary.
For more information, contact the authors Chris Hoffman at [email protected] or (858) 5979600 and Collin Cook at [email protected]
or (949) 798-2166.
Save the Date!
Monday, June 8th 2015
Mesa Verde Country Club
Serving the Dealer Industry
for over 28 years
Environmental Compliance:
•
•
•
•
•
•
•
•
Review Of Hazardous Waste Management
Hazardous Waste Cost Recovery Program
Storage Tank Compliance Audit
Hazardous Materials Release Response Plan
(CERS)
Spill Prevention Control & Countermeasures Plan
(SPCC)
Air Quality Management Audit
Reach your target audience affordably.
Safety Management:
•
•
•
•
Safety Inspection & Meetings (IIPP)
Respiratory Protection Program
Safety Training
Online Access to Safety Data Sheets (SDS)
DOT Required Training for Hazmat
Shippers & Receivers
•
•
Training & Certification for Dealership Employees
Providing a 24 Hour Support Phone Number As
Required By DOT
Representation in OSHA/EPA enforcement cases. Periodic
Newsletter on emerging EPA/OSHA issues as they impact
dealers. See www.epaoshablog.com
advertise
PENALTIES, FINES AND INCREASED
INSURANCE COST MORE THAN
COMPLIANCE
We have Certified Safety Professionals on staff with decades
of experience in working with dealers.
Sam Celly, BChE MChE JD
Certified Safety Professional
Member OCADA, NCDA, SMCDA, AIChE & AIHA
444 West Ocean Blvd., Suite 1402
Long Beach, CA 90802-4517
Phone: 562.704.4000 Direct: 562.716.6100
Email: [email protected]
DANI GORDEN
Advertising Sales
801.676.9722 or 855.747.4003
[email protected]
formerly
24
OCADA
get results
An Exclusive offer* for members of the
Orange County
Automobile
Dealers Association
EES will beat our competitors by 5% and donate
1% of your savings to a charity of your choice.*
With the cost of electrical energy increasing, and the affordability of energy
efficient technology, NOW is the perfect time to upgrade your lighting.
•
EES has over 15 years of experience offering the best prices on high-quality, energy efficient products.
•
EES has a proven record of success reducing energy costs and increasing your bottom line. A lighting retrofit can
mean up to a 70% reduction in lighting costs!
•
EES offers a 10-year warranty on all products and labor. If you have any issue with your LED lighting, just call EES
and we will take care of it quickly, at no charge.
•
EES offers each client a custom SMART Lot™ controller. The SMART™ controller automates energy management
throughout your facility with digital controllers resulting in an overall reduction in cost. Most clients notice a
reduction in kWh by at least 10%.
Call Today for a FREE Energy Evaluation
Tony (714) 422-7754
This offer is only valid on bids from competitors within 50 miles of the zip code 92646 for comparable energy efficiency services including 10 year warranty, similar products, and installation. In order to receive discount,
the competitor’s bid must be presented in print and dated within 30 days of the bid from Enlightened Energy Services, LLC. Offer Expires November 30, 2014. CA LIcense # 775547
Accelerate Your Dealership Profits
Dealership Development Programs • Automotive Training Academy • Compliance Programs • F&I Products
OCADA
25
Three Key Differences
Between Managing
and Leading!
By Dave Anderson, President Learn to Lead
O
ne of the most common
mistakes that prevents a
manager from reaching
his or her potential is to
over-manage and under-lead. Many
of the managers I've met over the
years don't even realize that there is
a difference between management
and leadership, or that developing a
balance of both skill sets is essential
if they want to grow their team and
maximize results. While I can't explain
as well in a few hundred words what
takes me two hours to cover in my
workshop, I'll do my best in this
space to outline a handful of key
differences between management
and leadership. Evaluate your own
tendencies, and determine if there
are adjustments you should make
that will help you to optimize your
leadership effectiveness.
26
OCADA
Think of management as
being about paperwork, while
leadership concerns people-work.
Management involves systems,
controls, budgets, forecasting,
scheduling, processes and
procedures. On the other hand, the
focus of leadership is to attract and
develop talent, motivate, create vision
and values, and build a team that can
succeed in your absence. I explain
to the attendees of my workshops
that there are two categories of tasks
you can engage in every day: "stuff"
or people. Frankly, management is
the stuff part of your job, and it's so
easy to become consumed by that
aspect of your daily responsibilities
that you have little or no time left for
people. A consequence for building
an organization that is over-managed
& under-led is that the team is likely to
be under-developed & overwhelmed.
Management and leadership are
equally important. Don't get the
idea that "management" is a bad
word. The problem comes when you
over-manage, and spend so much
time with stuff that you become
isolated, aloof, out of touch, and stop
impacting your people. The reason
I've spent so much time over the
years writing about and teaching
leadership is that it's the skill set
that most managers have had little
training in. They get schooled on
how to do the "stuff" part of the job
(data entry, inventories, forecasts,
budgets, scheduling, reading
financial statements, etc.) but don't
have a clue how to recruit, interview,
motivate, cast a vision, hold someone
accountable, or mentor. While it is
common to over-manage and underlead, it is also possible to over-lead
and under-manage. Think about
it this way: management without
leadership means that you won't be
able to grow what you keep, whereas
leadership without management
means you won't be able to keep
what you grow.
Here are three of the twenty key
differences between managers
and leaders that I discuss in my
seminars to help attendees become
more aware of what they're doing
well, and where they need to make
adjustments in their daily approach
to leadership:
1. Managers maintain whereas
leaders stretch. Managers are
decent at maintaining people,
but they're not great at growing
them because they don't spend
enough time with them, and
were never trained how to
evaluate or develop human
capital in the first place. They
don't seem to realize that while
you can impress people at a
distance (in your fancy office),
to impact them you must get
up close. Leaders, on the other
hand, are committed to leaving
followers better than they found
them. They stretch them out of
their comfort zone, provide the
tools and personal touch their
team members need to grow to
their potential, and hold them
accountable for results.
2. Managers lead from the rear,
leaders lead from the front.
Because they are enamored
with "stuff," managers spend
more time in their offices getting
dazed by data and numbed by
numbers, than they do in the
trenches, acting as a catalyst
and unleashing the potential of
their team. As they pencil whip
budgets and count beans in an
attempt to turn the numbers
around, they fail to develop their
human capital—turn the people
around—so that their people
can turn the numbers around.
These folks talk like leaders but
act like anchors. On the other
hand, leaders spend more time
charting the course than they do
charting results. They focus on
what's happening in the arena
and on the horizon, because
they know that the front line
determines the bottom line.
3. Managers resist change and
defend the status quo; leaders
rattle the status quo and
change before they have to.
Managers who spend a good
part of their day roosting in
an office, surrounded by stuff,
or suffering through hours of
death-by-meeting, devolve into
a defensive posture where they
spend more time plugging holes,
doing damage control, and
reacting than they do initiating
change. However, when they lead
in the trenches with their people,
they see more clearly what needs
to be changed and are quicker
to take action. Too many leaders,
who were successful at one time
because they led from the front
and acted as a change agent,
gradually withdrew from their
catalyst role and begin presiding
and administering from their
backside. They regress from
active to passive; from "lead,"
a verb, to "leadership," a noun.
During this regression, they
descend from risk taker, to care
taker, to undertaker, eventually
presiding over a lifeless enterprise
that became comatose on their
watch.
If you over-manage and under-lead
in areas like the three I've presented,
don't beat yourself up. After all, we all
get off track. What's important is that
you become a more self-aware leader
who makes faster adjustments when
you stray from a sound leadership
style so that your temporary detour
doesn't lead you into a rut which, if
you stay in it long enough, becomes a
grave.
OCADA
27
Let us Fix your Employee
Benefit Problems,
whether they be:
Cost
Employee Perception
Healthcare Reform
HR Compliance
Employee Communication
Health Risk Score
Call us for a Free consultation: 888.959.2869
Get your dealership
back on the FAST LANE!
1.800.522.4262
www.westates.net
Westates has the experience and
track record your dealership needs.
CALL NOW! 1.800.522.4262
D I R E C T M A I L M A R K E T I N G E X C L U S I V E LY F O R A U T O M O T I V E D E A L E R S H I P S
We create custom mailers that appeal to your customers & get results.
S E RV I C E M A I LE R S
• Service Coupon Specials
• Maintenance Reminders
• Declined Service Letters
• Conquest Mailers
SA LE S M A I LER S
• Buyback Letters
• Scored Data
• Sweepstakes and
Giveaways
• Bankruptcy
• Lease Termination
E M A I L CA M PA I G N S
Amplify the results of your Direct Mail Campaign with an Email Campaign by providing links
that in turn provide customers a convenient way of accessing your website or online web
coupons.
P O I N T- O F - P U R C H A S E M AT ER IA L S
In-store promotional materials that are eye-catching & help promote your sales or service event.
• Banners
• Table/Car Toppers
• Window Clings
• Posters
• Door Hangers
• Floor Graphics
6 8 0 0 O rangethorpe Ave. , Ste. H , B uena Park , CA 9 0 62 0 | w w w.westates . net
28
OCADA
HERE ARE SOME OF OUR
SALES CAMPAIGN RESULTS
NEWTON, MA
HONDA DEALER
35
VEHICLES
SOLD
11,500 pieces mailed
during a 4-day vehicle
buy back event
WESTMINSTER, CA
HONDA DEALER
40
VEHICLES
SOLD
20,000 pieces mailed
during a 4-day vehicle
buy back event
TORRANCE, CA
TOYOTA DEALER
92
VEHICLES
SOLD
18,900 pieces mailed
during a 31-day sales
invitation event
*Reported Sales include only vehicles that can be sourced
directly to the mailer. Sales reports are available upon request.
“Energy is the third-highest overhead
expenditure for automobile dealerships.”
-National Automobile Dealers Association
Cut your operating costs today! Generate power on-site and watch your utility bill drop. Shorebreak
Energy Developers is proud to offer...
ZERO-DOWN FINANCING - Lock in rates with our No-Cost Power Purchase Agreement
SAVINGS WITHOUT ANY INVESTMENT- Installed, maintained and monitored by Shorebreak
FREE-UP CAPITAL –Save on operating costs and preserve capital for core business opportunities
“GREEN” MARKETING–Use renewable energy and take advantage of “green” marketing and PR
FOR A FREE SOLAR ANALYSIS
CONTACT SHOREBREAK ENERGY DEVELOPERS AT:
877-449-1944 | www.ShorebreakEnergy.com
License # C-10 972616
Leveraging the Power of a Respected Reputation
“The landscape of business requires constant change... I count
on BKCG for consistent, sound legal advice and representation.
They are a powerful business partner and have earned my trust
and respect. Employment law, contract and strategic planning...
with BKCG on your team you’re in capable hands.”
~ Mohinder Singh l Carlsbad Volvo
Auto Dealership Representation ~We have extensive knowledge and
experience when it comes to dealership representation. Harness our powerful
capabilities to represent your interests with manufacturers, dealer to dealer,
consumer and DMV disputes. We are problem solvers when it comes to issues
pertinent to employment law, real estate law, finance and succession planning.
Seasoned Representation ~Every lawyer at our firm is experienced. Our
senior associates have all been in practice for at least 10 years, while our partners
have each been in practice for at least 20. No attorney in the firm has less than 5
years of experience.
Burkhalter Kessler Clement & George LLP
2020 Main Street, Suite 600, Irvine, California 92614
Phone: 949-975-7500 www.bkcglaw.com
Respected Reputation ~BKCG is named one of the Top 50 Law Firms in
Orange County by the Orange County Business Journal. Members of our firm
hold Martindale-Hubbell’s highest rating, AV Preeminent, and are listed in the
California Super Lawyers magazine.
Investing in your Success ~Everything to gain, nothing to lose. Meet with
Alton Burkhalter or Ros Lockwood... Give us an hour and we’ll show you why
BKCG should be a partner in your success. Let’s talk...949.975.7500
prsrt std
us postage paid
salt lake city, ut
permit no. 508
This magazine is designed and published by The newsLINK Group, LLC | 801.746.4003
In the Service of Orange County
FRIDAY, JAN. 17, 2014
WHEELS
Ford’s 20 1 5 F-1 50 pickup truck uses an aluminum alloy that trims its
weight by 700 pounds.
FORD MOTOR CO.
In the Service of Orange County
NOT LETTING UP
SUSAN
CARPENTER
STAFF
WRITER
W
ith the Detroit automakers riding high on 2013 sales figures that saw Ford, General
Motors and Chrysler all notching impressive gains for the year, the pedal is only being
pressed closer to the metal at the North American International Auto Show in Detroit
this week. From Ford to Kia to Volkswagen, the world’s largest automakers showcased innovative
new vehicles and concepts that are redefining the increasingly competitive automotive landscape.
201 5 FORD F-1 50
Imagine the starting lineup of
the Detroit Lions – or any other
NFL team, for that matter. Now
take away three of those players.
That’s how much weight Ford is
removing from its bestselling
F-150 pickup.
When it goes on sale later this
year, the 2015 F-150 will weigh up
to 700 pounds less than the outgoing model by sheathing its steel
frame in high-strength aluminum.
The truck’s cab, doors, hood –
they’ll all be made from a militarygrade aluminum alloy that, Ford
says, doesn’t just lighten the load
but makes it more dent-resistant
while simultaneously increasing
the truck’s acceleration, hauling
and stopping power.
It’s a claim that’s as hefty as the
truck itself. Range Rover has already tested the theory with its
2014 SUV, which lost a similar
amount of weight through aluminum. But the Ford F-150 is the
first mainstream vehicle to do so.
Ford’s F series pickups have been
the bestselling light vehicle in the
country for 32 consecutive years.
Making vehicles lighter is a no
brainer for a huge market segment that needs to make significant strides toward the government’s 54.5 mpg-by-2025 fuel
economy standard. The question
is how much cost it will add and
whether it will impact a truck’s
durability. The first answer is unknown, since Ford hasn’t announced the price. It has, however, put the aluminum-bodied version of the best-seller through
more than 10 million miles of testing, including a stint in the grueling Baja 1000 and multiple crosscountry hauls.
Shocking as the aluminum idea
WE’RE ACCELERATING.
ARE YOU?
VOLKSWAGEN
Volkswagen’s Beetle Dune Concept is a bug that’s offroad-capable. Showing “potential
for a new production version,” according to VW, it features a wider body, oversize wheel
housings and a rear spoiler that swivels to accommodate outdoor equipment.
S E E S H O W ● PA G E 2
RIDING THE LIGHTING
A family’s idea for a bike that
glows with customizable LEDs
started with a broken taillight.
BY SUMMER ROGERS
STAFF WRITER
From Orange County, through Los Angeles and across the Inland Empire,
the Register reaches an estimated 4.2 million readers every week, including
over 940,000 people shopping for a new or used car.
And with more custom print options, digital opportunities, and exciting
new creative solutions, we will connect you to consumers looking to buy.
PHOTOS: JOSHUA SUDOCK, STAFF PHOTOGRAPHER
Forrest Smith, center, and his sons Jack, 9, left, and Ben, 8, have been developing bike frames that light up.
Grow your business with us!
• Newspaper • Magazine • Digital • Mobile • Custom Options
One day in 2011, Forrest Smith’s then 7-year-old
son, Jack, said the darndest thing after his bike’s
taillight died: “I wish my whole bike could light up.”
That got Dad thinking, “Yeah, why doesn’t the
whole bike light
up?”
The 46-year-old
Costa Mesa resident
was aware of all the
accessories that can
be put on a bike to illuminate it, but
there was nothing
out there that used
the frame as part of
the lighting process.
So that was the The bike lights are activated with big, red buttons
plan.
Once the Long Is- on the frame.
land native had the
idea to create such a system, he had to see if it was
plausible.
“One of the guys who works for me, Ken Spaulding, is experienced with designing bike components, so I threw the idea out there and we started
messing around making different prototypes,” said
➜
CONTACT US AND
GET STARTED TODAY
S E E L I G H T ● PA G E 3
Lake Trout
[email protected]
714-796-3855
In the Service of Orange County
Currently, the OC Register and Press-Enterprise reach 2.1 million adults in the L.A. DMA. With the launch of the LA Register, we estimate we will reach 4.2 million in the next few months based on the circulation plan and the current Register readers
per copy based on Scarborough Research, based on past week print and online readership. This does not include Unidos, our Spanish Product, which is expected to reach an additional 323,000 Spanish Preferred residents in the L.A. DMA.
20879