Car Dealerships

News & Analysis as of

The Supreme Court Will Decide Service Advisor's Exempt Status

Dealerships will soon get a decisive ruling from the U.S. Supreme Court about an issue that has become a thorn in the side for many dealers. The issue: whether Service Advisors are exempt from overtime requirements under...more

New York AG Schneiderman Takes Action Against Auto Dealers for Deceptive Practices

On January 20, New York AG Schneiderman announced a lawsuit against several auto dealerships located in Queens, New York, alleging that the dealerships used deceptive sales tactics to sell add-on products and services,...more

CFPB Takes Action Against Colorado-Based “Buy-Here Pay-Here” Auto Dealer

On January 21, the CFPB filed a consent order to resolve allegations that a Colorado-based subprime auto dealer violated the TILA and the CFPA by engaging in abusive financing and marketing schemes. Specifically, the CFPB...more

Meowing Dogs and Barking Cats: Supreme Court’s Grant of Cert on Exempt Status of Automobile Service Advisors May Result in...

The U.S. Supreme Court recently agreed to resolve the question of whether “service advisors” at car dealerships—workers whose primary job responsibilities involve identifying service needs and selling service solutions to the...more

U.S. Supreme Court Agrees to Review Ninth Circuit Ruling Denying FLSA Exempt Status To Service Advisors at Automobile Dealerships

Navarro v. Encino Motorcars, LLC, is a wage and hour case brought by five service advisors who worked at a California automobile dealership, seeking overtime pay under the Fair Labor Standards Act (FLSA) and state law. The...more

Reliance, and Why No One Likes Shopping for Used Cars

If you’ve ever shopped for a used car, you’ve probably been asked to sign a document that defines your warranty rights. Sometimes a used-car seller might make no warranty at all, asking you to agree that you’re buying the car...more

CFPB announces consent order with buy-here pay-here used car dealer

The CFPB has announced that it has entered into a consent order with a Colorado buy-here pay-here used car dealer to settle charges that the dealer’s sales and advertising practices violated the Truth in Lending Act and the...more

Supreme Court Agrees to Review Automotive Dealership Service Advisors' Exempt Status Under FLSA

Retail automotive dealerships enjoy a special exemption from the overtime provisions of the Fair Labor Standards Act. Section 13(b)(10)(A) of the FLSA provides an overtime exemption for “any salesman, partsman, or mechanic...more

CFPB’s First Public Enforcement Action of 2016 is Against Colorado Auto Sales Company

On January 21, 2016, the Consumer Financial Protection Bureau (CFPB) announced an administrative enforcement action against Y King S Corp., d/b/a Herbies Auto Sales (Herbies), a buy-here pay-here used car dealer located in...more

CFPB Continues Stated Intention to Target Large Non-Bank Auto Lenders

In December 2015, the CFPB took action against non-bank auto lender CarHop. In so doing, the CFPB continued to carry out its stated intention of expanding its regulatory oversight to large non-bank auto lenders. ...more

Supreme Court Agrees to Hear Service Advisor OT Pay Split

As we reported back in October 2015 a car dealership, Encino Motorcars, petitioned the Supreme Court to “restore uniformity” to the enforcement of legal precedent and hold that service advisors are exempt from the FLSA’s...more

Supreme Court to Reexamine Service Advisor Exemption

Last October, we reported on a petition by an auto dealership asking the U.S. Supreme Court to overturn a ruling by the 9th Circuit Court of Appeals holding that the dealership's service advisors did not qualify for the...more

Updates to New Hampshire’s “Dealer Bill of Rights”: What Equipment Manufacturers Need to Know

After two years of litigation, Senate Bill 126, which amended New Hampshire’s Motor Vehicle Franchise Act — the so-called “Auto Dealer’s Bill of Rights” (codified at RSA 357-C) — has survived scrutiny by the New Hampshire...more

FTC Proposes Survey of Consumer Experience in Financing Auto Purchases through Dealers

The Federal Trade Commission has announced plans to conduct a survey of consumers regarding their experiences in buying and financing automobiles at dealerships. According to the supplementary information in the notice...more

FTC to Host Workshop Regarding Regulatory Environment of the U.S. Auto Distribution System

On December 14, the FTC announced that it will host a one-day workshop, Auto Distribution: Current Issues & Future Trends, to examine current issues and future trends related to the distribution of motor vehicles in the...more

CFPB Orders "Buy-Here, Pay-Here" Auto Dealer and Affiliate to Pay $6.5 Million for FCRA and CFPA Violations

Last week, the Consumer Financial Protection Bureau (“CFPB” or “the Bureau”) filed a consent order against “buy-here, pay-here” (BHPH) auto dealer Interstate Auto Group d/b/a Car Hop (“Car Hop”), and its affiliated financing...more

California auto dealers: Re-check your pay plans and wage statements before January 1, 2016

On October 10, 2015, Governor Jerry Brown signed AB 1513 into law creating a new California Labor Code § 226.2 (effective January 1, 2016), which rewrites and redefines the rules governing piece-rate compensation in...more

How Often Can We Run Credit Checks On Dealership Employees?

Picture this scenario: a privately held dealership operates 16 stores in Southwest Florida. The company’s CFO tries to keep on top of how the finance managers, cashiers, parts managers, and others who handle money or property...more

Proposed Overtime Regulations Will Likely Affect Your Dealership

The United States Department of Labor (USDOL) recently announced proposed revisions to some of the most commonly used exemptions to minimum wage and overtime, saying it will “extend overtime protections to roughly five...more

California Highway Patrol seeks to eliminate identity theft in vehicle purchases with proposed new thumbprint requirement

Every year, millions of dollars are lost by finance companies and dealerships due to fraud and identity theft related crimes. Even worse, due to the lack of accurate personal information on an identity theft suspect,...more

Supreme Court to Resolve Circuit Split on OT Pay for Car Dealerships?

As you have read in our blog over the years, the misclassification of employees as exempt is one of the primary claims in wage and hour litigation.  Misclassification claims can arise in many forms, including the...more

Bhasin Anniversary: You Gotta Have Faith?

It has been almost a year since the Supreme Court of Canada’s unanimous decision in Bhasin v. Hrynew, which was the subject of great attention and some alarm when released. What did it mean to have “good faith as an...more

VW Group – A Storm in a Teacup?

We've all seen a lot of media coverage about the 1.2 million Volkswagen/Audi/Seat/Skoda vehicles sold in the United Kingdom that are fitted with "defeat" software and the storm clouds are brewing. But the reality is that...more

Seventh Circuit Decision Drives Home Importance of Prudence in Communicating With Employees About Union Issues

In AutoNation, Inc. v. NLRB, the Seventh Circuit enforced a National Labor Relations Board decision that found a car dealership to be in violation of the National Labor Relations Act for interfering with workers’ efforts to...more

Appellate Decision Helps CA Dealers Navigate CLRA Responses

On August 27, 2015, the California Court of Appeals reaffirmed the denial of plaintiff's fees and costs totaling $182,273.00 in Benson v. Southern California Auto Sales, Inc., et al, Case No. G050484. This is a significant...more

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