VOL. 6 | NO. 03 SkillsUSA Auto Tech Students Throughout New Hampshire “Go for Gold” at Lakes Region CC Page 18 NH Legislators and Regulatory Partners Connect at Crossover Reception Page 4 ALSO INSIDE: The 2024 “Unlocking Opportunities” Business Conference & Partner Expo Page 10
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VOL. 6 • NO. 03 PRESIDENT Dan Bennett, REM, IOM, CAE NHADA OFFICERS Marshall Jespersen, Chairman Jim Boyle, Vice Chairman Jeff Platek, Treasurer Shawn Hanlon, Secretary NHADA DIRECTORS John Sawyer Jr., Immediate Past Chair MaryBeth Alosa, Heavy Duty Truck Vanessa Delegas, Franchised Tim Foss, Franchised Jason LaCroix, Franchised Mike Phillips, Independent Used Car Ron Poirier, Independent Repair/Service David Hammer, NADA Director George Mullin, Franchised/Independent Jessica Trask, Franchised Roger Groux, Advisory Director Mike Petell, Franchised/Motorcycle ©2024 New Hampshire Automobile Dealers Association (NHADA) | The newsLINK Group, LLC. All rights reserved. Drive New Hampshire is published six times each year by The newsLINK Group, LLC for the NHADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. 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 circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the NHADA, 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. Drive New Hampshire is a collective work, and as such, some articles are submitted by authors who are independent of NHADA. While Drive New Hampshire 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. For further information, please contact the publisher at 855.747.4003. 4 A Message From the President Changes and Challenges Following the Midpoint of the Legislative Session By Dan Bennett, REM, IOM, CAE, President, NHADA 6 A Message From the Chair Stronger Together How Trade Associations Fuel Business Innovation and Growth By Marshall Jespersen, ICL Autos, Chairman, NHADA 8 NADA Update Harvard Business Review Echoes NADA on EV Challenge By NADA 9 NADA Update Lessons From the Best Highlights From Leading Workplaces By NADA 10 Unlocking Opportunities at the Business Conference & Partner Expo Recap By Kaleena Guzman, Director of Major Events and Partnership Program, NHADA 12 Motorcycle/Powersports Members Working Together for a Stronger Industry By George Mullin, NHADA Director, Souhegan Valley Motorsports 13 Thank You, Departing Board Members 14 Youth Employment Laws in New Hampshire By Margaret “Peg” O’Brien, Esq., McLane Middleton, Professional Association 17 Last Call! Join Us for the Ultimate Family Reunion at Lake Winnipesaukee! By Kaleena Guzman, Director of Major Events and Partnership Program, NHADA 18 Going for the Gold at the 2024 SkillsUSA Auto Competition 20 Don’t Wait Until It Hurts By Lori Preve, Licensed Insurance Producer, NHADA 22 Are You Taking Advantage of NHADA’s Training Opportunities? 23 6 Key Considerations for Buying or Selling a Dealership By Albin, Randall & Bennett, an NHADA Silver Partner 24 Heat Stress By Brian Duplessis, Loss Prevention Supervisor, NHADA 25 Loss Prevention Concerned With Large Tires By Brian Duplessis, Loss Prevention Supervisor, NHADA 26 LotDrop The 2024 Summer Collection 28 NHADA Membership Milestones Q2: April 1, 2024-June 30, 2024 28 NHADA New Members 29 By the Numbers 30 Thank You, 2024 NHADA Partners! CONTENTS 3
A MESSAGE FROM THE PRESIDENT CHANGES AND CHALLENGES FOLLOWING THE MIDPOINT OF THE LEGISLATIVE SESSION BY DAN BENNETT, REM, IOM, CAE PRESIDENT, NHADA Crossover marks the midpoint of the legislative session and the deadline for full chamber votes on all originating bills. This critical juncture determines which bills advance to the opposite chamber, maintaining their potential to become law. Crossover day is invariably long and hectic for senators and representatives. For many years, we have hosted the annual Legislative Crossover Reception, offering legislators a chance to unwind with complimentary food and drinks as they celebrate or reflect on the day’s outcomes. This year’s event fostered bipartisan camaraderie and provided a relaxed setting for discussions on NHADA issues and the legislative session. Initially, over 1,000 bills were filed, many of which landed on our watchlist. We’ve seen significant successes so far, particularly in advocating for road and trail safety. We remain committed to opposing any legislation that might undermine annual vehicle safety inspections, as this could have serious implications for driver safety across the state. HB 1391 was a bill that attempted to modify our vehicle inspection program. Under this proposed legislation, vehicle inspections would not be required until the second year of ownership following the purchase of a new vehicle. As of this writing, thanks to the support of our members, we are happy to report that on May 7 the Senate Transportation Committee unanimously voted that the Senate take no further action. Thanks to the efforts of our Motorcycle/OHRV members, we helped kill HB 1562, a bill that proposed reclassing jet skis as “personal watercraft,” effectively banning them on 4
many New Hampshire lakes. This would have negatively impacted our members and increased congestion on other lakes. The session’s second half promises to be equally busy and swift. We will continue to play a crucial role in legislative discussions on title exemptions and consumer regulations that could complicate vehicle servicing. Moreover, we and e-lien are actively engaged in the state’s shift to e-titling. By now, the state has likely chosen a vendor to implement this project. We are committed to building a strong partnership with the vendor to ensure a seamless transition for our members. As the session winds down, legislators are preparing to return to their districts for the upcoming elections, anticipating another busy period. We remain committed to advocating for the motor vehicle industry’s interests at the Statehouse. As always, feel free to reach out to me with any legislative concerns at dbennett@nhada.com or call me at (603) 224-2369. WHAT DID DEALERSHIP TRANSACTIONS IN GREATER NEW ENGLAND LOOK LIKE IN 2023? The Phillips Report is the only publication that specifically speaks to auto dealership transaction values, trends and trajectories in the New England and New York market areas. DOWNLOAD THE 2023 YEAR END REPORT WWW.NANCYPHILLIPS.COM 5
STRONGER TOGETHER How Trade Associations Fuel Business Innovation and Growth BY MARSHALL JESPERSEN ICL AUTOS, CHAIRMAN, NHADA A MESSAGE FROM THE CHAIR In the dynamic world of the motor vehicle industry, fostering strong networks and staying up with industry trends is vital for survival as well as growth and innovation. An overlooked avenue for achieving these objectives is involvement in trade associations. Membership in organizations such as NHADA and active event participation gives one access to a wealth of knowledge, experience and practical advice that can help solve problems and improve business outcomes. BUILDING A SUPPORTIVE NETWORK Trade associations provide a valuable platform for professionals to meet and collaborate. Our members gain access to a community of like-minded individuals facing similar challenges. These relationships are invaluable, as they facilitate the sharing of knowledge, experience and advice, thus reducing stress and isolation often felt in competitive business environments. EXCHANGING INNOVATIVE IDEAS Periodic events, such as town halls, seminars, larger events and fundraisers, serve as opportunities for participants to share ideas, stimulate creativity and give them the environment in which to come up with innovative solutions to some persistent problems. The diverse perspectives and experiences shared at such events can lead to breakthroughs that may not have been possible alone. Join us at Mill Falls at the Lake for the NHADA “Family Reunion” Convention. More on pg. 17. LEARNING FROM SUCCESSES AND FAILURES Another significant benefit is the opportunity to learn from both the successes and failures of peers. Case studies and real-life stories shared during events often offer practical insights that are directly applicable to one’s own business. This ongoing exposure to new and differing viewpoints, the latest industry developments, legislative information and practical experience (been there, done that, now you don’t have to) is crucial for thriving in our industry. CREATING LASTING BONDS The trust, friendships and professional relationships formed often go beyond mere networking. These relationships can evolve into lasting partnerships, where businesses collaborate on projects, share resources and support each other’s growth. The trust and mutual respect that develop over time are invaluable assets contributing to sustained business success and personal satisfaction. Embrace the journey and let the power of camaraderie guide you to your next business breakthrough. For questions on how you can become more involved with NHADA, contact the office at (603) 224-2369 or support@nhada.com. 6
A Better Core in 2024 DominionDMS.com (866) 928-3210 1515 South Federal Highway, Suite 406 Boca Raton, FL 33432, USA SCHEDULE YOUR DEMO Discover how VUE By Dominion DMS gives your dealership: Hearing the cries of the automotive community, we developed a brand new cloud core DMS, called VUE. This software is flexible, efficient and innovative. Schedule a demo and upgrade to a Better Core in 2024. EFFICIENCY INNOVATION FLEXIBILITY SAVINGS Personalization, Engagement, and Speed – the holy trinity of an amazing customer experience. Being a cloud-core DMS and using agile development methodologies means that we can keep dishing out top-notch solutions for our dealers and partners. Dominion DMS is easy to learn and simple to use. You have easy access from any web connection and you get to choose the apps you want and need to drive your success. Behold, VUE! Waving a magic wand to make DMS core fees vanish into thin air. Franchise dealerships can now save while still enjoying our best in class accounting, parts, sales, and service modules.
NADA UPDATE HARVARD BUSINESS REVIEW ECHOES NADA ON EV CHALLENGE BY NADA Last November, NADA President and CEO Mike Stanton authored an op‑ed in Automotive News that shaped the automotive industry narrative on EVs, and the then-forthcoming EV regulations from the Environmental Protection Agency (EPA). Entitled “Crossing the chasm on EVs may require plug-in hybrids,” Stanton laid out the challenge of getting mass market consumers to adopt new technologies adored by early adopters: “In the marketing classic ‘Crossing the Chasm,’ Geoffrey Moore describes the difficulty of moving new technology from early adopters to the mass market. The problem is so universal and so difficult that Moore says there is effectively a ‘chasm’ in the market between early adopters and the mass market that can be nearly impossible for tech companies to cross … the real-life drawbacks of range anxiety, slow charging and undeveloped charging infrastructure are keeping many [mass market consumers] from buying them.” Stanton concludes, “Promoting plugin hybrids may be the way to get EVs across the chasm … Plug-ins would ease the transition to EVs, get consumers used to charging, create the demand necessary for investments in the charging network and build a bridge across the chasm to bring EVs to the mass market.” NADA even had Geoffrey Moore on its Driving Ahead podcast to talk about the difficulty of EVs crossing the chasm. Harvard Business Review is now echoing this analysis. In a new article, “Why has the EV market stalled?” author Jeremy Korst writes, “We have reached a classically difficult point … where the challenge becomes figuring out how to move from what early adopters want to what a broader segment of the market wants.” Korst continues, “To travel safely over Moore’s chasm — many consumers will need a bridge … [Consumers] see hybrid and plug-in hybrid vehicles as a bridge that will help them eventually get to an all-electric future. … Automakers and policymakers alike need to acknowledge and meet this demand by making more hybrids and hybrid plugins available as soon as possible.” The new EPA regulations released last month made a step toward embracing plug-in hybrids, although not nearly to the levels petitioned by NADA or the automakers. As the federal government tracks consumer sales of EVs, hopefully, they will also realize the larger role hybrids and plug-in hybrids should play in the future of the fleet. Article provided by David Hammer, NH NADA Director. 8
NADA UPDATE LESSONS FROM THE BEST Highlights From Leading Workplaces BY NADA Dealers often refer to their dealership employees as “family.” These teams are close-knit groups of hard workers who care about their customers, each other and their community. A strong dealership culture is good not only for employees but also for business. So, how is the “family” culture created? To answer that question, we compiled some of the key trends from dealerships highlighted in Automotive News’ 2023 Best Dealerships To Work For. BENEFITS ENCOURAGING HEALTH Dealerships are finding ways to encourage their employees to stay healthy. Beyond standard healthcare packages, some companies offer support or full funding for diabetes and cardiovascular programs, gym memberships, registration fees for races and marathons, Lasik surgery, hearing aids, vitamins and supplements, mental health resources and incentives to stop smoking. THINKING ABOUT LIFE OUTSIDE THE STORE Employee benefits are not limited to physical health and well-being. Some dealerships have programs to help ease personal burdens outside the store — like legal and financial services, retail partnerships with cell phone providers, vehicle purchasing programs, pet insurance and even monthly haircuts at the dealership. In recognition of their commitment to the local communities where they live and work, some dealerships offer additional time off or financial incentives for team members to engage in philanthropy and civic activities. LIFELONG LEARNING The auto retail industry is constantly changing. The most successful dealers stay ahead of the curve, as do the most successful employers. Comprehensive onboarding and training (often including interdepartmental shadowing) at the start of each employee’s career is only the beginning. Dealerships are implementing ongoing education through internal and external apprenticeship programs, internally developed training curriculums to develop managers, training school partnerships with local technical colleges, subsidized education developing new languages or skills and offsite leadership training through manufacturers and NADA. CELEBRATING EMPLOYEE MILESTONES Sharing moments in employees’ personal lives, as well as in their professional lives, helps foster closeness among a dealership’s larger staff. Dealerships will often buy season tickets for their local sports teams and disperse them among employees throughout the year or encourage employees to attend together. Celebrations for birthdays, professional achievements, work anniversaries and holidays — especially when they involve food — offer a fun break in the workday. OPENING THE DOOR An “open-door policy” is much less a policy than a carefully created culture. Dealerships create a welcoming and positive culture through public recognition of their employees as well as intentional efforts to solicit feedback, including town hall meetings, employee councils, employee surveys, two-way reviews with managers and exit interviews. Article provided by David Hammer, NH NADA Director. 9
UNLOCKING OPPORTUNITIES AT THE BUSINESS CONFERENCE & PARTNER EXPO RECAP BY KALEENA GUZMAN DIRECTOR OF MAJOR EVENTS AND PARTNERSHIP PROGRAM, NHADA On May 15, professionals from member and partner businesses gathered for a day of education and networking at our Business Conference & Partner Expo. The event, made possible by the generous support of our sponsors, members and partners, showcased a diverse array of engaging breakout sessions. Among the standout sessions were: • Empowering Middle Managers: Strategies to Elevate Their Leadership Potential in Your Dealership, presented by ProActive™ Leadership Group, NHADA Bronze Partner. • Time Well Spent: Decoding Employment Law for Effective Attendance Management, presented by Bernstein Shur, Devine Millimet, McLane Middleton and Sheehan Phinney — all NHADA Silver Partners. • 2024 Top 5 Real Issues for New Hampshire Franchised Dealers, presented by Bernstein Shur, NHADA Silver Partner. • All-in Compliance: Mastering New Regs and Legal Challenges in 2024, presented by ComplyAuto, NHADA Diamond Partner. • Regulate It Right: Your Ultimate Guide to NH Title Tidbits, an informative session presented by NH DMV. • Navigating Participation Programs in a Turbulent Industry, presented by Assurant Dealer Services, an NHADA Diamond Partner • Unlocking the Truth: Detecting Fraud in Dealerships presented by NH Troop G – Investigation/Fraud Unit 10
EVENT SAVE THE DATES NHADA “Family Reunion” Convention Sunday, June 23-25, 2024 Mill Falls at the Lake in Meredith, NH Mingle with NHADA members and partners and their families. 28th Annual Drive for a Tech Golf Tournament Friday, September 6, 2024 Pease Golf Course at 200 Grafton Rd. in Portsmouth, NH Shotgun Start! Supports the NH Automotive Education Foundation. Raffle for Automotive Education Tuesday, October 29, 2024 Bank of NH Stage 16 at S. Main St. in Concord, NH 25K in scholarships awarded! Supports the NH Automotive Education Foundation. These sessions provided attendees with practical strategies, legal insights and regulatory updates essential for navigating the ever-changing landscape for motor vehicle businesses in New Hampshire. We want to once again acknowledge the generosity of our event sponsors! Their consistent support is crucial to the success of events like this. • Armatus Dealer Uplift: AV Sponsor • Team Nissan: Table Top Sponsor • Tyler, Simms & St. Sauveur CPAs: Breakout Session Sponsor • Northeast Auto Auction: Gift Bag Sponsor • GW Marketing Services: Name Badge Sponsor • Nancy Phillips Associates: Ticket Sponsor • Dominion DMS: General Expo Sponsor • Gordon-Darby NHOST Services: General Expo Sponsor • Portsmouth Ford: General Expo Sponsor • Quirk Auto Dealers NH: General Expo Sponsor Thank you to all who attended this year’s Business Conference & Partner Expo! We hope you found the event valuable and look forward to seeing you at our upcoming events. Please see the Event Save the Dates and be sure to mark your calendars! 11
MOTORCYCLE/POWERSPORTS MEMBERS WORKING TOGETHER FOR A STRONGER INDUSTRY BY GEORGE MULLIN NHADA DIRECTOR, SOUHEGAN VALLEY MOTORSPORTS The discussions centered on current legislation, updates from our regulatory partners and strategies for workforce development. We appreciate everyone who attended and contributed to making this event both productive and successful. We are eager to continue these discussions and further our connections at the upcoming NHADA events. NH RIDES DAY On May 4, 2024, NHADA Motorcycle/Powersports members connected with New Hampshire’s rider community. Enthusiasts from all over the state joined us for “NH Rides Day” at Manchester Community College to kick off the riding season. The NH Motorcycle Task Force worked together to host this event in early May in recognition of Motorcycle Safety Awareness Month. Safe roadways are a cornerstone mission of NHADA and protecting on and off-road motorcyclists begins with rider awareness. TOWN HALL MEETING Earlier this year, Souhegan Valley Motorsports participated in the Motorcycle and Powersports Town Hall, hosted in the NHADA seminar room. It was encouraging to see the room filled with industry members actively engaged in meaningful discussions. We were privileged to have representatives from NH Fish & Game and the DNCR Trails Bureau join us. A special acknowledgment to Executive Director Scott Mason, Captain Michael Eastman and Trails Chief Craig Rennie for their contributions. 12
THANK YOU, DEPARTING BOARD MEMBERS NHADA would like to thank our board members who are stepping away after several successful years serving our membership. Marshall Jespersen (Chairman, ICL Autos) presenting a plaque to Mike Phillips (independent used car director, Phillips Auto Sales) as a thank you for his years of service. MIKE PHILLIPS (Independent Used Car) Phillips Auto Sales Years of Service: 2018-2024 MARYBETH ALOSA (Heavy Duty Truck) New England Kenworth Years of Service: 2018-2024 VANESSA DELEGAS (Franchised) Lovering Auto Group Years of Service: 2020-2024 EVENT HIGHLIGHTS: • Food Trucks • Motorcycle Dealers • Vendors • Riding Demonstrations • Bike Contest • Giveaways • Presentation of Motorcycle Safety Awareness Month Proclamation If you are part of NHADA’s Motorcycle/ Powersport community and would like to get involved and participate in events like these, please contact support@nhada.com or call the office at (603) 224-2369. 13
As summer approaches and more teenagers enter the workplace due to low unemployment, now is a good time to review the laws governing the employment of individuals under the age of 18 in New Hampshire. YOUTH EMPLOYMENT LAWS The New Hampshire Department of Labor (NH DOL) and the U.S. Department of Labor (U.S. DOL) enforce the state Youth Employment Law (RSA 276-A) and the federal Fair Labor Standards Act (FLSA), respectively, and perform inspections and assess penalties for violations related to youth workers. There are two general areas of focus regarding youth employment laws: hours/time of day limitations and hazardous work restrictions. Employers should ensure that any individuals responsible for hiring are aware of both the state and federal rules pertaining to youth employment and that all supervisors are properly trained with respect to the scope of appropriate work for minors, as well as with respect to scheduling issues. Please remember that employers must comply with both the federal and state laws governing youth employment and that these laws are not identical. This means that employers must comply with whichever youth employment law (federal or state) provides the greatest protection for the youth. Although both laws define a “youth” to be any individual under the age of 18, the specific restrictions are different for 16- and 17-year-old workers compared to those under 16 years of age. In general, any youth under the age of 14 may not work in New Hampshire (casual work and newspaper delivery). Additionally, most youths may not perform “hazardous” work, such as, but not limited to, commercial driving, excavation, manufacturing explosives and operating many types of power-driven equipment. Further, New Hampshire has specific laws governing the employment of youth in the alcoholic beverage industry not covered in this article. YOUTH EMPLOYMENT LAWS IN NEW HAMPSHIRE BY MARGARET “PEG” O’BRIEN, ESQ. MCLANE MIDDLETON, PROFESSIONAL ASSOCIATION 14
cutters or bakery mixers; or any other activity classified as a “hazardous occupation.” • No work in warehouses, communications or public utilities jobs, construction or repair jobs, or jobs in which they drive a motor vehicle or operate powerdriven machinery or hoisting apparatus (other than typical office machines). • No work loading and unloading goods to and from trucks or conveyors. Hours Allowed & Limitations • Up to three hours on a school day and up to 18 hours per week during a school week. • Up to eight hours on a nonschool day and up to 40 hours per week during a nonschool week. • No work before 7:00 a.m. and after 7:00 p.m., except from June 1 through Labor Day, when they can work as late as 9:00 p.m. • “Week” is defined as any fixed and regularly occurring 168-hour period that is the same as the employer’s workweek. SPECIFIC LAWS GOVERNING 16- AND 17-YEAR-OLDS Type of Work Allowed • May engage in any work not classified as a “hazardous activity” (or separately regulated, such as serving alcohol). • Occasional driving by minors at least 17 years old during daylight hours within limitations outlined by DOL Fact Sheet #34. • Auto Industry Specific Jobs: U.S. DOL stated in a 1986 FLSA opinion letter that 16- and 17-year-olds may operate electric, pneumatic and hydraulic lifts in service stations, and electric doors. NH DOL has also clarified driving and lift operation restrictions for 16- and 17-year-olds. Type of Work Not Allowed* • Work classified as hazardous including but not limited to power-driven woodworking metal-forming, punching and shearing machines; forest, logging and sawmilling operations; and unloading or operating balers and compactors. *Limited apprentice/student-learner exemptions may apply. Hours Allowed & Limitations • No more than 35 hours during a workweek when school is in session for the whole week. • During school vacations and from June 1 through Labor Day, no more than six consecutive days or 48 hours in any one week. (There is an exception for youths who reside and work at a summer camp for minors.) • Youth not enrolled in school may not work more than 10 hours a day or 48 hours in a week in any manual or mechanical labor in manufacturing and no more than 10¼ hours day or 54 hours in a week, if any manual or mechanical labor in nonmanufacturing environments. If a youth worker has more than one job, this limitation still applies to all employers. See RSA 276A:11 and RSA 276-A:12. POSTING REQUIREMENTS NH employers are required to post in a conspicuous place in every room where youths are employed a printed notice stating the hours of work, the time allowed for dinner or other meals and the maximum number of hours any youth is permitted to work in any one day. YOUTH EMPLOYMENT CERTIFICATES New Hampshire requires most youths under the age of 16 to acquire a New Hampshire Youth Employment Certificate within three business days of the first day of employment. The certificate may be issued by principals of schools or their designee, or by a parent or legal guardian. For 16- and 17-year-olds, the employer must obtain a signed written document from the youth’s parent or legal guardian permitting the youth’s employment, and this permission SPECIFIC LAWS GOVERNING 14- AND 15-YEAR-OLDS Type of Work Allowed • Non-manufacturing, non-mining and non-hazardous jobs, such as found in retail stores, offices, restaurants, movie theaters, amusement parks and gasoline service stations. • Auto Industry Specific Jobs: U.S. DOL regulations provide that 14- and 15-year-old youths may work in jobs connected with cars and trucks if confined to the following: dispensing gasoline and oil; courtesy service; and car cleaning, washing and polishing by hand. Type of Work Not Allowed • No baking or cooking (except with gas or electric grills that do not involve an open flame); work with freezers or meat coolers; work in meat processing areas; work to operate, set-up, adjust, clean, oil or repair power-driven food slicers, grinders, choppers, 15
form must be on file at the worksite prior to the first day of employment. Samples of both of these forms are available on the NH DOL website under “Forms and Publications.” OTHER CONSIDERATIONS Teenagers and young adults frequently possess limited exposure to professional environments, which may result in a lack of familiarity with workplace norms and safety protocols. As a consequence, they may struggle to discern what constitutes appropriate behavior and may be unaware of potential health and safety hazards present in the workplace. Young workers may find themselves particularly prone to experiencing sexual harassment and discrimination in the workplace, often lacking the knowledge or confidence to address such misconduct. It is imperative for employers to prioritize comprehensive training for young employees, outlining company policies and reporting channels for instances of discrimination and harassment from the outset of their employment. By actively fostering an environment that encourages young workers to voice their concerns and promptly report any issues, employers can intervene early and effectively mitigate potential escalations of misconduct. Safety training should be comprehensive with regular feedback and evaluation, including counseling and disciplinary action if unsafe behavior and/or violations of safety rules occur. OSHA provides guidance on employer responsibilities related to youth workers. For example, OSHA recommends employers label equipment that young workers are not allowed to operate. Lastly, there may be exceptions to the minimum age requirements listed previously for minors employed by their parent or by a person acting as their guardian. HIRING INTERNS In the pursuit of gaining practical work experience, many teenagers and young adults express interest in working as an unpaid summer “intern.” This arrangement, commonly regarded as mutually beneficial, provides interns with a chance to acquire invaluable experience while affording employers the aid of free, enthusiastic support. However, unpaid internships may run afoul of federal and state wage and hour laws. Both the U.S. DOL and the NH DOL have issued guidance addressing when unpaid interns are allowed. In NH, organizations must receive approval from the NH DOL first. See U.S. DOL Fact Sheet #71 and the NH DOL School-to-Work. PENALTIES Employers violating youth employment laws risk criminal and civil penalties, including fines and imprisonment. Under federal law, employers are subject to a civil money penalty of up to $15,629 per worker for each violation of the child labor laws. In addition, employers are subject to a civil money penalty of $68,801 for each violation that causes the death or serious injury of any minor employee. Federal law also provides for a criminal fine of up to $10,000 upon conviction for a willful violation of child labor laws. For a second conviction for a willful violation, the act provides for a fine of not more than $10,000 and imprisonment for up to six months or both. State law also imposes civil and criminal penalties for violations of youth employment laws. CONCLUSION Employers have a responsibility to adhere to both federal and state laws and regulations, with a particular focus on safeguarding the well-being of young workers. The U.S. DOL and NH DOL have both expressed increased enforcement efforts in this area. Now is a good time to review the company’s practices with respect to youth employment to ensure that all of the specific requirements of both laws are being satisfied. For more information about youth employment in New Hampshire, please scan the QR code. https://www.nhada.com/our-solutions/workerscomp/youth-employment 16
LAST CALL! JOIN US FOR THE ULTIMATE FAMILY REUNION AT LAKE WINNIPESAUKEE! The countdown has begun for our largest annual event — the “Family Reunion” Convention at Mill Falls on Lake Winnipesaukee from June 23‑25! Don’t miss out on this perfect opportunity to kick off your summer with fellow members of your industry. Experience a blend of leisurely activities for you and your family, as well as business and networking opportunities. ACTIVITIES GALORE! Be sure to pack your clubs for our annual golf tournament at the scenic Waukewan Golf Club. Prefer something more laid-back? Join our Brew Tour and sample the finest local brews, or hop aboard our Tiki Boat Rides for a leisurely cruise along the tranquil waters of Lake Winnipesaukee! For the nature enthusiasts, don’t miss the Moulton Farm tours and picnic, where you can explore picturesque landscapes and indulge in farm-fresh delights. With hiking and biking trails nearby, there’s no shortage of outdoor adventures to explore. Craving an adrenaline rush? Funspot awaits! Dive into the arcade, and just minutes away, you’ll find go-karts and mini-golf! Sports enthusiasts can showcase their skills at the soccer tournament, and water lovers can dive into a variety of water sports available throughout the weekend. With so much to explore and enjoy, there’s never a dull moment at our convention! WHAT ELSE? Enjoy refreshing drinks, delicious hors d’oeuvres and scenic views at our nightly cocktail hour, followed by meals and live after-dinner entertainment that promises a night to remember. LAST CALL – DON’T MISS OUT! With less than a month to go, now is your last chance to secure a spot for an unforgettable weekend getaway. Don’t wait to read about all the fun in the next issue – sign up now and join us for the ultimate family reunion! We can’t wait to welcome you, your family and team members to kick off the summer! Questions? Don’t hesitate to contact me directly at kguzman@nhada.com or at (603) 224-2369. Scan the QR code to register today! https://www.nhada.com/convention BY KALEENA GUZMAN DIRECTOR OF MAJOR EVENTS AND PARTNERSHIP PROGRAM, NHADA 17
GOING FOR THE GOLD at the 2024 SkillsUSA Auto Competition In early March, we had the privilege of co-hosting the state SkillsUSA Auto Competition. In this event, students vied for the opportunity to represent New Hampshire at the national competition in Atlanta, Georgia, and to win impressive prizes. This year, with a little help from our friends at MB Tractor & Equipment, Nucar Automall of Tilton and TMS Diesel, we were able to provide the top three finalists with tool sets varying in size. The first-place finisher also received a U.S. General toolbox. Additionally, each finalist received a scholarship toward their automotive education. This not only heightened the competition but also offered significant bragging rights as gold, silver and bronze medalists in each of the four categories. Over 35 students from across the state gathered at Lakes Region Community College to test their skills in power 18
To learn more about the winners and the competition, scan the QR code. https://foundation.nhada.com/news/go-for-the-goldin-the-2024-skillsusa-auto-competition These are the winners of this year’s SkillsUSA Automotive Competitions: MLR 1st Place — Aiden Slosser 2nd Place — Austin Hopler 3rd Place — Caleb Normandin Power Equipment Technology 1st Place — Ryan Hill 2nd Place — Joshua Laverdure 3rd Place — Ryan Tango AST 1st Place — Micah Krick 2nd Place — Aeden Cullen 3rd Place — Zachery Fish Diesel Equipment Technology 1st Place — Hunter Schrempf 2nd Place — Colin Fay 3rd Place — Jackson Hall equipment, diesel, maintenance and light repair (MLR) and collegelevel automotive service technology (AST). Marc Pouliot of White Mountain Community College ran the Diesel event with the support of TMS Diesel, Jamie Decato and his team from Lakes Region Community College covered MLR along with AST, and the MB Tractor & Equipment team took on the Power Equipment portion. The students were tested in areas such as electrical diagnostics, automotive measurements and parts identification — and faced a soft skills challenge that included job interview techniques. Upon registering, they even submitted their resumes. Volunteers monitored the students’ progress across various stations throughout the day, ensuring safety was maintained. By the end of the day, everyone was exhausted, but the students could breathe a sigh of relief knowing their efforts were complete, leaving them to await the judges’ final scores. Hunter Schrempf (student) and Alan Sheldon of TMS Diesel. 19
DON’T WAIT UNTIL IT HURTS BY LORI PREVE LICENSED INSURANCE PRODUCER, NHADA Regular dental check-ups are more than just an opportunity to brighten your smile; they’re a crucial component of overall health maintenance. Seeing your dentist yearly helps in early detection of potential issues and preventing them from escalating into serious problems. These visits are essential in keeping your dental health in optimal condition. 20
Remember, investing a small amount of time in annual dental visits can lead to a lifetime of healthy smiles and contribute significantly to your well-being. NHADA Insurance has several excellent dental coverage offerings available to our members. If you’re interested in exploring potential dental benefits please contact me at (603) 224-2369 or lpreve@nhada.com. Children: Your children should have their first dental visit by age 1. A general or pediatric dentist can determine your child’s risk for dental disease and recommend an appropriate dental schedule. • Never put your baby to bed with a bottle and limit sippy‑cup use to mealtimes only. • Parents or caregivers should brush and floss their children’s teeth until they are aged 8 to 10, when adequate motor skills develop. • Be sure children use fluoridated toothpaste at least twice daily and floss once (at a minimum). • Limit frequency of sugary drinks and foods to reduce risk of dental decay. • Look for products containing Xylitol, a natural sweetener, which can help prevent tooth decay. • To help prevent dental decay on the chewing surfaces of your child’s back teeth, ask your dental provider about dental sealants. Adults: Adults should continue with routine dental visits. Regular dental cleanings and good home care can help to prevent gum disease and dental decay. • Dental exams include oral cancer screenings, which could save your life. • The early stage of gum disease, called gingivitis, is reversible if diagnosed early. • Late stages of gum disease, called periodontal disease, is a chronic infection which has been linked to systemic inflammation and chronic disease, including diabetes and heart disease. • Periodontal disease can cause chronic bad breath, receding gums, tooth mobility and tooth loss. • Adults can still develop dental decay; so, continue brushing with fluoridated toothpaste, floss regularly and limit consumption of sugary foods and drinks. • Some prescription and over-thecounter medications cause drymouth, which increases the risk for dental decay — especially on exposed root surfaces. • Elderly seniors may require assistance with home care regimens — especially those in residential facilities. Patients with Dentures: Those wearing dentures must still visit their dentist regularly to ensure proper fit, and to be screened for oral cancer. • Dentures should be removed at night and soaked in denture cleaner. • Brush dentures with paste designated for dentures instead of regular toothpaste (as it can scratch denture material). • Keep soaking dentures in a secure container and away from pets. REASONS WHY EVERYONE NEEDS TO SEE THEIR DENTIST YEARLY 21
ARE YOU TAKING ADVANTAGE OF NHADA’S TRAINING OPPORTUNITIES? The New Hampshire Automobile Dealers Association (NHADA) is a key resource for motor vehicle industry professionals in New Hampshire, offering a wide range of training designed to enhance individual and industry growth. All proceeds from these programs support the New Hampshire Automotive Education Foundation, reinforcing the future of the state’s automotive workforce — a clear win-win for personal and professional advancement. NHADA provides a dynamic selection of on-demand education, allowing professionals to learn at their own pace and schedule. Choose from webinars to specialized courses like Hazmat certification, which grants a three-year certification upon completion. This flexibility ensures that professionals can stay up-to-date with industry standards and expand their skills without disrupting their daily routines. The association keeps its training relevant and engaging, regularly updating its sessions to reflect the latest industry trends. Upcoming courses include: • June 12: Titles & Regulations — Webinar • June 20: Emerging Leaders Business Forum Series 2 — In person • July 10: Intermediate Automotive Accounting — Webinar • August 7: Titles & Regulations — In person • September (Date TBD): Dealer Bill of Rights and Warranty Reimbursements — Webinar These training sessions provide valuable opportunities for learning, networking and staying informed about critical trends and regulations. Visit www.nhada.com/training for updates and seize every chance to enhance your expertise and leadership in the industry. 22
6 KEY CONSIDERATIONS Although the buy/sell market is starting to show signs of slowing, many dealers are still flush with cash accumulated over the past several years and are still looking to grow by adding additional franchises. Dealer groups, both large and small, are generally in a strong cash position, which can lead to considerable purchase opportunities. WHAT ARE SOME KEY CONSIDERATIONS WHEN A BUYER TARGETS A DEALERSHIP FOR PURCHASE? • Facilities — Whether or not a dealership’s facilities are factory-compliant influences both the attractiveness of the franchise and the value of the franchise. If a dealership is not factory compliant, then a normalizing adjustment should be made to the earnings. This will reduce the historical earnings of the dealership against which a multiple or return on investment is applied, reducing the goodwill the buyer is willing to pay. • Goodwill/“Blue Sky” — Obvious factors affecting a dealership’s intangible value (goodwill/“blue sky”) are location, market size, competition and the type of franchises you already own, in addition to understanding the intrinsic value of the specific target franchise. Large discrepancies in valuation multiples exist among different franchises. Whether you are considering a luxury franchise, import franchise or domestic franchise, each will have a significant range of multiples when considering franchise value. It is also important to understand the current dealership’s reputation within its local market. Service absorption is another important component of a dealer’s profitability, so pay particular attention to an analysis of a dealer’s fixed operations and units in operation. An underperforming dealer may have more upside and may be worth more to a purchaser than an over-performing dealership in the same market. An add-point may also be worth more to an acquiring dealer than one who is entering a new market. • Inventory Valuation — How to define the value of the inventory you are buying is included in the letter of intent and the buy/sell agreement. New vehicle inventory is purchased at a price net of factory incentives already received by the selling dealer. The purchase price generally does not include hold back, floorplan or advertising assistance. The seller generally has already collected or will collect these factory incentives, so the buyer would not pay for them again. It is important to understand what factory incentives a manufacturer has and what should be excluded from the purchase price. Used vehicle inventory is usually purchased at a negotiated price adjusted for any modifications made to the vehicle by the selling dealer. The value paid for OEM parts inventory is usually an amount for returnable undamaged parts. The buyer and seller generally negotiate the price paid for non‑OEM parts. • Appraisal of Assets — Aside from goodwill and inventory, what other business assets are you acquiring? It is important to take an inventory and value all fixed assets. As a buyer, you should not buy assets at the value on the factory financial statement. Often the value presented here is due to a previous purchase price allocation. Who knows if the value is accurate and representative of what you are receiving? Sellers should take note of their previous capitalization policies. Did you expense certain items? How did you account for special tools? You should ask these questions prior to putting a value on these assets. While considering the assets you are selling, you should also consider various contracts you want a potential buyer to inherit. Accumulate these contracts and make sure they can be assigned to another company. • Quality of Management — An often-overlooked aspect of many deals is the importance of assessing a target dealership’s existing workforce. If the buyer is a local dealer group, they are more likely to have existing management team personnel and/or employees they can transfer to the new dealership. However, if the buyer is an outside dealer group expanding into a new market, they are likely to be more reliant on the target dealership’s current employee base, especially its management team. Most buyers believe they can improve on the profitability of FOR BUYING OR SELLING A DEALERSHIP BY, RANDALL & BENNETT AN NHADA SILVER PARTNER 23
H E A T S T R E S S BY BRIAN DUPLESSIS LOSS PREVENTION SUPERVISOR, NHADA High temperatures and humidity are finally here. NHADA reminds members it’s important to take steps to prevent heatrelated illness, which can be very serious and even deadly. Members are also reminded that the Occupational Safety and Health Administration (OSHA) currently has a heat stress emphasis program, meaning they will visit any workplace upon receiving a complaint. Some of the best practices recommended include: • Employee awareness • Proper hydration • Air circulators • Frequent breaks in air-conditioned areas • Lightweight clothing (shorts) • Cooling wearables It’s also important to monitor employees and take prompt action if you recognize the symptoms of a heat-related illness, which can include: • Cool, moist skin with goose bumps when in the heat • Heavy sweating • Faintness • Dizziness • Fatigue • Weak, rapid pulse • Low blood pressure upon standing • Muscle cramps • Nausea • Headache Lastly, we are asking members to be extra vigilant early in the summer season as employees haven’t been acclimated to the high heat. Acclimation is one of the risk factors. For more information and assistance with heat injury prevention resources, contact your NHADA loss prevention rep or Brian Duplessis at bduplessis@nhada.com. the prior dealer. If that is the case, then look carefully at what the current management team is doing or not doing. Are they the cause of poor performance, or are there other factors? • Earnings Capacity — Normalize the target dealerships earnings by increasing or reducing expenses you expect will not apply to your new company. For example, if rent is not fair market rent, then add back or subtract an amount that will normalize rent to the fair market. If the current dealer employs family members who will not be needed at their current salary, then add back or subtract an amount that will normalize their salary. If the current dealer packs his or her extended service contracts and pays that money to a management company, then add that pack back to net income to determine normalized net income. This type of analysis will help you determine what you think you can do with this opportunity. An underperforming dealer in a high-traffic market may present more of an upside than the same type of dealer in a lowertraffic market. It’s important to work with qualified professionals when analyzing an opportunity. They should assist you with formulating a reasonable projection of earnings when targeting a dealership to acquire. Once you understand your opportunity, you can start putting together your offer. Please let anyone on our dealership services team know how we can help. To learn more or contact our team, scan the QR code. https://arbcpa.com/auto-dealership/ 24
LOSS PREVENTION CONCERNED WITH LARGE TIRES BY BRIAN DUPLESSIS LOSS PREVENTION SUPERVISOR, NHADA In addition to the routine servicing of heavy truck tires, most manufacturers offer upfitting packages for trucks and SUVs that include large sport tires. These tires represent substantial material handling hazards for service technicians. This exposure has led to some serious lifting injuries. From a claims standpoint, it’s not a frequency issue, averaging 15-20 per year, so much as a severity concern. Injuries involving tires are more than double the average cost per claim. That severity means that technicians are being put out of work by these injuries and potentially experiencing life-altering debilitation. With our industry facing critical workforce shortages, we cannot afford to lose technicians to injury. Therefore, it’s essential that shops take action to prevent material handling injuries involving large tires. Every shop should have policies and procedures for upfitting vehicles with large tires and changing truck tires in general. These procedures must be aimed at minimizing the amount of physical exertion required. The best prevention measures are material handling aids like tire lifts and tire wheel arm extensions. Tire lifts work great, but often don’t fit between bays. Therefore, the shop should have a policy of performing these jobs on lifts that have enough space, i.e. truck bays. Shops should avoid assigning the majority of these jobs to the most “brawn” technician, as even the strongest technicians can wear out and get injured doing too much heavy lifting. One clever hack we see in some shops is setting the tire in a 15 gallon barrel to keep it at a safe lifting height versus placing it on the floor. This works well in tight spaces. If you have unique procedures you use to minimize lifting hazards, please contact us and share your ideas. Another best practice we strongly encourage is to train employees on proper ergonomics. NHADA offers an industry-specific ergonomic awareness training that all technicians should complete. Service technicians are critically important to the success of our industry. Therefore, action must be taken to ensure their health and safety at work. Policies and procedures on handling heavy tires are essential in preventing debilitating injuries. For information on ergonomic awareness training, please contact Brian Duplessis at bduplessis@nhada.com. 25
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