MADA Fast Facts

ANOTHER WIN FOR MADA MEMBERS

Kurt Berryman Takes the Top Honor

We are thrilled to announce that Kurt Berryman, legislative director for MADA and DADA's Auto Dealers of Michigan, LLC (ADM), has once again emerged as the reigning champion among individual lobbyists for Michigan membership organizations / associations. His knowledge of the Michigan legislative environment and the automotive industry, paired with his influential personality have secured his place as #1. Congratulations, Kurt!

Kurt claimed an impressive 11% of the votes, with Wendy Block from the Michigan Chamber taking second place with 6%. Since 2009, Kurt has won the most effective lobbyist category six times. (The MIRS/EPIC-MRA Insider Survey is released biennially.)

Under the guidance of Kurt and a dealer board of managers, the Auto Dealers of Michigan also tied for fourth-place as Michigan's most effective membership organization.

The survey, conducted by MIRS Information & Research Service, Inc. and EPIC-MRA, encompassed the input of 577 respondents, including lawmakers, administration officials, legislative staff, and government affairs professionals. The absence of pre-listed names or options in the questionnaire further displays the impact Kurt has made in support of franchised dealerships.

When asked about his latest accomplishment, Kurt expressed his gratitude, saying, "Wow, honored. However, I wish I was the top lobbyist in my House – I currently sit solidly in fourth place." (Kurt is married, with two kids.)

We congratulate Kurt on this well-deserved victory!

One way to help recognize his efforts on behalf of Michigan dealerships is through support of MADPAC. Kurt does excellent work helping to distribute these dealer funds in a way that benefits our entire membership. Information about MADPAC was mailed to dealerships last week. You can also read more about the topics Kurt is following in his spring update.

EMPLOYMENT OF MINORS

Reminders As Dealers Are Hiring Minors This Summer

The following information has been provided by Colombo & Colombo.

If your business employs teens or uses unpaid students as interns, it is essential for you to be aware of, and adhere to, those laws which guide the practice of employment of minors. If your company’s gross volume of sales is greater than $500,000, your business is construed to be engaged in “interstate commerce.” As such, both federal and state laws apply, with the more stringent of the two controls. The following provides an updated summary of these laws as they apply to your business and the employment of minors.  

Employment of All Minors

1. Unless working for a parent, a minor must be at least 14 years of age to be employed.

2. Prior to employing a minor, an employer must procure and keep on file at the place of employment, a copy of a work permit, see:

• Combined Offer of Employment and Work Permit/Age Certificate CA-6 for Minors UNDER 16 Years of Age
• Combined Offer of Employment and Work Permit/Age Certificate CA-7 for Minors 16 and 17 Years of Age

Work permits are no longer required to be printed on pink or yellow paper.

3. A minor cannot be employed for more than five hours continuously without an interval of at least 30 minutes uninterrupted for a meal and rest.

4. A minor cannot be employed unless an employer or another employee 18 years of age or older is present, nor can a minor be employed at a fixed location in an occupation that involves a cash transaction after sunset or 8:00 p.m., whichever is earlier, unless an employer or other employee 18 years of age or older is present at the fixed location during those hours.

5. An employer must keep posted an informational sheet summarizing the Michigan Youth Employment Standards Act, see:

• Informational Sheet: Youth Employment Standards Act 90 of 1978, as amended POSTING REQUIREMENT

6. An employer is also required to maintain a time record on the premises which states the number of hours worked by the minor each day of the week along with the starting and ending times and meal/rest periods.

7. The Michigan minimum wage rate does not apply to minors under the age of 16 years. Therefore, employers must comply with the Federal minimum hourly wage rate of $7.25 per hour, except:

• a. Employers may take advantage of a provision under Federal and State law, which allows a training wage to be paid to employees under 20 years of age of $4.25 per hour for the first 90 consecutive calendar days of employment.

• b. Additionally, even after the 90 day period expires, employers are not required to pay minors ages 16 and 17 the full Michigan minimum wage rate, but rather may pay these minors 85 percent of the Michigan minimum hourly wage rate if said reduced rate is the same or higher than the Federal minimum wage rate. Currently, the minimum wage rate in Michigan is $10.10 per hour and the Federal minimum wage rate is $7.25 per hour. Therefore, since the reduced rate of 85% under Michigan law is higher than the Federal minimum wage rate, employers can pay the reduced rate of $8.59 per hour to employees under the age of 18 years. 

View the full Colombo & Colombo notice for more information on:

• Employment of Minors Age 14 And 15  
• Employment of Minors Age 16 And 17
• Minors Graduated From High School/Minors With GED/Emancipated Minors
• I-9 Form
• Unpaid Interns

SOS TITLE BACKLOG

Delayed Titles Have Now Been Printed

The Michigan Department of State (MDOS) has notified MADA that they are caught up on the backlog of certain vehicle titles that had been held for printing.

As dealers were notified late last year, this backlog was caused by a national shortage of the special paper used for title stock. This has been a struggle for dealers and state departments around the country. We thank our MDOS contacts for keeping us informed during the delay and moving quickly through the printing process once the title stock became available.

If any dealers are still awaiting a previously delayed title, you are welcome to reach out to James Fackler at (800) 292-1923 or jfackler@michiganada.org. MADA will contact MDOS to determine the current status. Please include the dealership name, dealer license number and VIN when requesting a status check on a title.

VEHICLE THEFT

High End Vehicles Stolen During Daylight

A Saginaw area dealer has notified us that two high-end, special edition used vehicles were recently stolen from the dealership. The thefts took place on different days and at different times - but both vehicles were stolen during daytime hours. (The dealership was closed during the thefts.) All dealership keys are accounted for.

It has not been confirmed, but this is likely another situation of key cloning. In just a few minutes, a criminal can use a key re-programmer to clone a key. (This article from Sunday Times Driving explains some scenarios.) After cloning a key, the suspect comes back later (could be hours or days) and drives away with the vehicle. When talking to an officer from a Michigan auto theft team, it was suggested that keys be stored in a signal blocking device when not in use. Salespeople might also attempt to avoid situations where one person is inside the vehicle, while an accomplice is potentially distracting the salesperson outside of the vehicle.

Dealers are encouraged to continue sharing information about vehicle theft or fraud they have encountered. While we may not always include repeating methods in Fast Facts, it is beneficial for the association to know what activity is happening around the state. Call MADA at (800) 292-1923 or email Summer Kniss at skniss@michiganada.org.

MEMBER NEWS

Dealership Book Club

Service managers striving to optimize fixed ops performance might want to rip a page from the playbooks at Sherwood Ford in Alberta and Shaheen Chevrolet in Michigan. In short: Get employees together to crack open a good read.

Reading groups in both dealerships' service departments have amped up efficiency, developed better leaders, empowered decision-making, boosted accountability, enhanced customer service and boosted technician retention. And subsequently, key performance metrics — average value of repair orders, throughput and labor hours billed, for example — have risen like a hot novel on the New York Times Best Sellers list...keep reading

NADA Academy Students

The NADA Academy program prepares current and future dealership leaders to operate a successful and profitable automotive business, while examining the latest in industry trends and technology. We are pleased to recognize the following Michigan dealership employees:

Graduating from NADA Academy in July...

• Micheal Toribio, West Michigan International - Grand Rapids
• Taylor Ghesquiere, Mercedes-Benz of Novi

Beginning NADA Academy in July...

• Brian McIntosh, Tyler Honda
• Brittany Loomis, George Matick Chevrolet

AROUND THE WEB

HIGHLIGHTING OUR ASSOCIATE MEMBERS