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. 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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
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