VOL. 7 | NO. 01 Navigating the 2025 Legislative Session Page 4 Tax and Policy Changes What Lies Ahead for Auto Dealers Page 20
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Daniel Duda, daniel.w.duda@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
VOL. 7 • NO. 01 PRESIDENT Dan Bennett, REM, IOM, CAE NHADA OFFICERS Marshall Jespersen, Chairman Jason LaCroix, Vice Chairman Jeff Platek, Treasurer Shawn Hanlon, Secretary NHADA DIRECTORS John Sawyer Jr., Immediate Past Chair Michael Lampert, Franchised Heavy Duty Truck John Crowley, Franchised New Car Tim Foss, Franchised New Car Jason LaCroix, Franchised New Car Dennis Gaudet, Independent Used Car Ron Poirier, Independent Repair/Service David Hammer, NADA Director George Mullin, Franchised/Independent Jessica Trask, Franchised New Car Roger Groux, Advisory Director Jim Boyle, Advisory Director ©2025 The New Hampshire Automobile Dealers Association (NHADA) | The newsLINK Group LLC. All rights reserved. DRIVE New Hampshire is published six times per year by The newsLINK Group LLC for 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 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 a first-print policy is encouraged, 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. CONTENTS A Message From the President 4 Navigating the 2025 Legislative Session By Dan Bennett, REM, IOM, CAE, President, NHADA A Message From the Chair 6 Paying It Forward to Those in Need Exeter Area New Car Dealers Association Gives $206,000 to Area Nonprofit Charity Causes By Marshall Jespersen, Chairman, NHADA, ICL Autos 7 NADA and TADA Win Court Challenge to FTC Vehicle Shopping Rule 8 Tilton Dealer Honored at 2025 NADA TIME Dealer of the Year Reception 9 Go “All-In” at This Year’s Casino-Themed Convention 10 Protect Your Dealership Avoiding Sophisticated Invoice Scams 13 Carbon Monoxide and Employee Health By Brian Duplessis, Loss Prevention Supervisor, NHADA 14 Highlighting 5 of the Top 10 Wage and Hour Violations in New Hampshire (And How to Avoid Them in 2025) By Jim Reidy, Attorney, Sheehan Phinney, NHADA Silver Partner 16 The Critical Role of Deal Jacket Audits Ensuring Compliance and Mitigating Risk By Brad Miller, Chief Compliance/ Regulatory Officer, ComplyAuto 19 Unpacking the 2024 Automotive Instructor Training By Adam Memmolo, Workforce Development Coordinator, NHADA 20 Tax and Policy Changes What Lies Ahead for Auto Dealers By Matthew Marcoullier, CPA, Albin, Randall & Bennett, NHADA Silver Partner 22 Workers’ Compensation Indemnity Benefits By Deb Handrahan, WCT Supervisor, NHADA 24 OSHA Injury Reporting Requirements By Matt Foster, Senior Loss Prevention Representative, NHADA 25 With VSP, You Have the Freedom to Choose By Lori Preve, Licensed Insurance Producer, NHADA 26 LotDrop The 2025 Winter Collection 28 NHADA Membership Milestones Q1: Jan. 1, 2025-Feb. 28, 2025 28 NHADA New Members 29 By the Numbers 30 Thank You, 2025 NHADA Partners! 3
NHADA’s High Priority Bills: 2025 Legislative Session BILL TITLE, SPONSOR(S), LEGISLATIVE ACTIONS NHADA POSITION PROPOSAL HB 649 removing the requirement for physical safety inspections and on-board diagnostic tests for passenger vehicles and eliminating funding for the motor vehicle air pollution abatement fund. Sponsors: (Prime) Michael Granger, Jason Osborne, Juliet Harvey-Bolia, John Sellers, Shane Sirois, Matt Sabourin dit Choinière Oppose HB 209 allowing a new vehicle purchased in the model year or before to be inspected in the second year after purchase. Sponsors: (Prime) Matthew Coker, James Spillane, Gregory Hill, Charlie St. Clair, Heath Howard, Timothy Lang, Donald McFarlane Opposed HB 212 allowing a 180-day operation waiver when a motor vehicle fails an emission control test. Sponsors: (Prime) Matthew Coker Support A MESSAGE FROM THE PRESIDENT NAVIGATING THE 2025 LEGISLATIVE SESSION BY DAN BENNETT, REM, IOM, CAE PRESIDENT, NHADA The legislative session brings a wide array of proposals that impact our members, the motor vehicle industry and the communities we serve. The bills outlined in this document cover key topics such as vehicle safety standards, emissions testing, workers’ compensation and operational regulations. Each bill presents unique challenges and opportunities, and our positions reflect careful consideration of their potential effects on our industry and the broader public. Our legislative approach is guided by the NHADA Legislative Committee made up of our members. On the following chart, you’ll find our full priority bill list, detailing the specific legislation we are tracking and our position on each. As advocates for the motor vehicle industry, our collective success depends on your active participation. When we call on you to take action — whether it’s contacting a legislator, sharing your story or amplifying our message — your involvement makes a tangible difference. Remember, our voice at the statehouse is only as loud as yours back home. Let’s work together to ensure that the industry’s interests are represented and that thoughtful, impactful legislation prevails. Thank you for standing with us. MVPAC carefully and thoughtfully contributes to candidates from both political parties. MVPAC funds are used exclusively to support New Hampshire elected officials (State Representatives and Senators, Executive Councilors, and Gubernatorial candidates) who are sympathetic to dealer concerns and issues. Since 1982, MVPAC has held a very successful track record in supporting those state candidates that support us. WE SUPPORT THOSE WHO SUPPORT US 4
BILL TITLE, SPONSOR(S), LEGISLATIVE ACTIONS NHADA POSITION PROPOSAL SB 157 relative to inspection and registration of certain fleet vehicles and necessary amendments and administrative rules regarding the state implementation plan. Sponsors: (Prime) Denise Ricciardi Monitor HB 239 defining and enabling lane filtering. Sponsors: (Prime) Ellen Read, JD Bernardy, Henry Giasson Opposed SB 273 relative to motorist duties when approaching highway emergencies involving a stopped or standing vehicle. Sponsors: (Prime) Donovan Fenton Support HB 411 relative to making the use of a mobile electronic device while driving a secondary offense. Sponsors: (Prime) Ellen Read, Mark Warden, Tom Mannion Opposed HB 174 increasing the maximum weight of a utility terrain vehicle to 3,500 pounds unladen dry weight. Sponsors: (Prime) Mike Ouellet, Brian Cole, Richard Lascelles, Arnold Davis, Lori Korzen, Ron Dunn, Sean Durkin, Michael Murphy Support HB 127 extending the closing date of the OHRV trails on the Connecticut River Headwaters property from September 30 to Columbus Day. Sponsors: (Prime) Ouellet (R), Durkin (R), Tierney (R), Lascelles (R), Korzen (R), Rochefort (R) Support SB 67 relative to workers’ compensation and resolution of payment disputes. Sponsors: (Prime) Tim McGough Support HB 744 relative to workers’ compensation indemnity benefits percentage. Sponsors: (Prime) Mark MacKenzie Oppose HB 299 relative to the award of attorneys’ fees and costs in workers’ compensation claims. Sponsors: (Prime) Stephen Pearson, Suzanne Prentiss, Mike Bordes Opposed HB 354 relative to alternate certification pathways for career and technical education instructors. Sponsors: (Prime) Rick Ladd, David Watters, Peter Leishman, Glenn Cordelli, Patricia Cornell, Ruth Ward, Timothy Lang, Howard Pearl, Kristin Noble Support WELCOME, JAY O’LEARY! We are thrilled to announce that Jay O’Leary, former State Police Lieutenant and Troop G Commander, has joined the NHADA team as our new Government Relations & Compliance Specialist. With extensive experience leading Troop G, which oversees the inspection and regulation of commercial vehicles — including those operated by motor vehicle dealerships and transportation companies — Jay brings invaluable expertise to this role. His background will not only enhance our compliance efforts but also play a key role in advancing our legislative advocacy initiatives this year and beyond. Welcome to the team, Jay! 5
BY MARSHALL JESPERSEN CHAIRMAN, NHADA, ICL AUTOS For more than 30 years, The Exeter Area New Car Dealers Association has lived its mission to serve children and families in the region through its annual golf tournament, raising funds and assisting nonprofits in ways that have left a lasting positive impact on several New Hampshire communities. In 2024, the association contributed $206,600 to support a variety of programs benefiting children and young people. These initiatives included suicide prevention efforts, food pantries, playground upgrades at local parks, a YMCA amphitheater, teen after-school programs, youth sports and other projects focused on enriching the lives of young people. Additionally, the association’s donations have extended to broader community needs, such as providing a passenger van for a local retirement home to offer free transportation and improve residents’ access to area services. Representing Audi of Stratham, Porsche of Stratham and Honda Stratham, I am privileged to work alongside several business owners and managers who have made it a year-round priority to give back: • Phil Gregoire, AutoFair Nissan • Mark Wilkins, BMW of Stratham • David Yanofsky and Darren Coute, Exeter Subaru • Larry Foss and Tim Foss, Foss Motors • Mike Baillargeon, Holloway Automotive • Chris Lane, McFarland Ford, McFarland Hyundai, McFarland Kia • Sheree Kaplan-Allen, Mercedes-Benz of Portsmouth • Doug Miles, formerly of Seacoast Volkswagen • Dan Enxing and Adam Enxing, Volvo Cars Exeter A MESSAGE FROM THE CHAIR PAYING IT FORWARD TO THOSE IN NEED Exeter Area New Car Dealers Association Gives $206,000 to Area Nonprofit Charity Causes Recognizing the alarming rise in traffic fatalities in New Hampshire, The Exeter Area New Car Dealers Association donated $25,000 to the New Hampshire Driver Education Fund. This contribution aims to ensure that new drivers and their families can afford the type of training necessary to save lives and foster safe driving habits from the earliest age. These funds are specifically allocated to families who struggle to cover the full cost of driver education. (L-R): Tim Foss, Foss Motors; Adam Enxing, Volvo Cars of Exeter; Doug Miles; Chris Lane, McFarland Ford; Dan Enxing, Volvo Cars of Exeter; Larry Foss, Foss Motors; Darren Coute, Exeter Subaru; Mike Doucette, NH Driver Ed. Teachers Association; Scott Rogers, Thin Blue Line Driving School; Dan Bennett, NHADA; John Marasco, NH DMV; Janet Bouchard, NH DMV; Maria Buckman, NH DMV; Everette Miller, NH Driver Education Fund Scholarship Recipient Our dealerships have been fortunate to receive tremendous support from our customers, families and local businesses, and we believe in the importance of giving back. Looking ahead to 2025, we are actively planning to make an even greater impact. 6
In a 2-1 vote, the U.S. Circuit Court of Appeals for the Fifth Circuit granted a petition filed by NADA and the Texas Automobile Dealers Association (TADA) to vacate the FTC Vehicle Shopping Rule (CARS Rule) for violating the FTC’s own procedural requirements for issuing trade regulation rules. More specifically, the court held that the FTC skipped an essential step to inform the rulemaking process requiring it to begin with an Advanced Notice of Proposed Rulemaking. As a consequence, the FTC Vehicle Shopping Rule has no force or effect. This decision by the 5th Circuit Court of Appeals on NADA’s and TADA’s legal challenge is a victory for the rule of law and a great outcome for consumers. As we have been saying since this rushed, poorly researched and unnecessary rule was announced, the FTC’s Vehicle Shopping Rule would have added massive amounts of time, complexity, paperwork and cost to the car-buying and car-shopping experience for virtually every customer. That truly would have been a nightmare for consumers and dealers alike. Thanks to the success of this legal challenge, dealers can get back to what they do best, which is creating the best possible customer experience and reducing transaction times wherever possible. NADA reminds dealers that many provisions that were in the Vehicle Shopping Rule have been subject to FTC enforcement under Section 5, and dealers should continue to ensure compliance with all existing rules related to advertising, sales and financing. NADA will continue to fight for dealer interests at the FTC and all federal agencies, as well as on the Hill and in the courts whenever necessary. NADA AND TADA WIN COURT CHALLENGE TO FTC VEHICLE SHOPPING RULE ... the FTC Vehicle Shopping Rule has no force or effect. 7
TILTON DEALER HONORED AT 2025 NADA TIME DEALER OF THE YEAR RECEPTION The unexpected inclement weather didn’t stop this year’s TIME Dealer of the Year Nominee from attending this year’s NADA Show. Among 48 other nominees, Dan Dagesse, co-owner and chairman of Nucar Automall of Tilton, was acknowledged for his charitable giving, donating millions of dollars to various organizations. He has paid partial tuition for college students; stocked local food banks; renovated an ice rink; and supported White Mountains Community College; Boys & Girls Club of the Lakes Region; Granite United Way; Court Appointed Special Advocates (CASA) of New Hampshire; and many others. Raymond L. Farabaugh, President of D-Patrick Inc. in Evansville, Indiana, was named the 2025 TIME Dealer of the Year. 8
Join us for an unforgettable evening at NHADA Casino Night! Mark your calendar for this year’s annual convention on Friday, June 13, at the AC Hotel in Portsmouth, New Hampshire. This one-night-only event is sure to sell out, so book your room now! WHAT TO EXPECT Partner Showcase: Connect with our incredible partners to learn about their products, how they can help your business, and to start building your bankroll of funny money for later in the evening. Casino Games: Whether you’re a seasoned pro or a first-timer, there’s a seat for you! Enjoy heavy appetizers, cocktails, and live music throughout the night while you engage in casino-style games. Kid-Friendly Fun: Our Kids Club ensures little ones are entertained while you enjoy the evening. EXTEND THE FUN Stay overnight, enjoy a Saturday morning breakfast, and explore Portsmouth or join our annual golf tournament. Prefer to head home after the games? The choice is yours! A NEW SPIN ON TRADITION This year, we’re shaking things up based on your feedback! But don’t worry — the beloved NHADA Family Convention will return next year, bigger and better at The Lake Estate on Winnisquam. Questions or sponsorship inquiries? Contact Kaleena Guzman at kguzman@nhada.com or (603) 224-2369. Mark your calendar, secure your spot and get ready for an incredible night! REGISTER YOUR TEAM Visit nhada.com/convention. GO “ALL-IN” AT THIS YEAR’S CASINO-THEMED CONVENTION 9
Auto dealerships are increasingly becoming targets of sophisticated email scams designed to exploit routine financial processes. One such incident, recently thwarted by a vigilant dealership, serves as an important reminder to stay alert and implement best practices to avoid falling victim to fraud. THE SCAM: AN OVERVIEW A dealership narrowly avoided a loss of nearly $59,000 when its accounts payable team identified and stopped a fraudulent invoice scam. Here’s how the scam unfolded: 1. Spoofed Emails » The scam involved emails that appeared to come from a trusted internal employee’s official email address. » These emails instructed the accounts payable team to process payment for an “overdue invoice.” They even referenced the dealership’s official accounts payable email address to enhance credibility. 2. The Fraudulent Invoice » The invoice claimed to be issued by a professional-sounding company and totaled $58,999.99. » It detailed services for a “Strategic Vision and Execution” program, complete with a detailed breakdown of charges and professional descriptions. 3. Detailed Line Items The invoice listed specific services, each with associated fees: » Strategic Vision and Execution — $12,000.99: Training on creating and executing strategic visions to drive growth. » Advanced Financial Strategies — $11,500.00: Guidance on financial tools and superior decision-making techniques. » Elite Leadership Training — $12,500.00: Leadership enhancement through advanced training. » Innovation and Change Leadership — $10,000.00: Fostering innovation and managing change effectively. » Strategic Networking and Partnerships — $10,000.00: Building valuable networking skills and partnerships. » Initial Setup and Orientation — $2,999.00: Administrative costs for onboarding and materials. 4. Professional Messaging » The emails featured polished language and a fabricated correspondence trail to make the payment request appear legitimate. » References to leadership development and partnership success bolstered the scam’s credibility. PROTECT YOUR DEALERSHIP Avoiding Sophisticated Invoice Scams 10
HOW THE SCAM WAS PREVENTED Fortunately, the dealership’s team followed established training and verification protocols: • Vigilance: A member of the accounts payable team flagged the invoice as suspicious and raised concerns. • Verification: The team contacted the employee whose email appeared to authorize the payment to confirm its legitimacy. • Confirmation of Fraud: The employee confirmed they had not sent the email or authorized the payment. By following these steps, the dealership avoided the fraudulent payment and was able to report the incident internally for further action. KEY TAKEAWAYS FOR DEALERSHIPS This incident underscores the importance of implementing strong safeguards to protect against scams. Consider the following best practices: 1. Employee Training » Educate employees on recognizing phishing and spoofing attempts. » Regularly remind teams to verify unusual or urgent financial requests. 2. Verification Protocols » Require confirmation from multiple parties before processing large or unexpected payments. » Use phone calls or in-person verification to confirm email requests. 3. Email Security » Implement robust email security measures, such as two-factor authentication and anti-phishing tools. » Regularly monitor and update email security settings. 4. Incident Reporting » Encourage employees to report suspicious activity immediately. » Share incidents with industry associations to raise awareness and strengthen collective defense efforts. CONCLUSION Sophisticated scams targeting dealerships are on the rise, but vigilance and robust protocols can prevent losses. By staying informed and proactive, dealerships can protect themselves from financial fraud and maintain their reputation as trusted members of their communities. Please reach out to support@nhada.com to report any scam you encounter, and we will spread the word. 11
CONTACT US TODAY TO PLACE YOUR ANNOUNCEMENT AD. SHOW-OFF. THERE'S NOTHING WRONG WITH BEING A Call (801) 676-9722 or scan the QR code to get started. Place QR Code Here ▷ Show o your employees. ▷ Show o your accomplishments. ▷ Show o a job well done. Employees are motivated when they are recognized and feel valued. This magazine is a great platform to celebrate your team’s accomplishments! Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. drive-nh.thenewslinkgroup.org 12
CARBON MONOXIDE AND EMPLOYEE HEALTH BY BRIAN DUPLESSIS LOSS PREVENTION SUPERVISOR, NHADA When cold weather sets in, service departments close their garage doors. This has an immediate impact on the air quality in the shop, which can lead to service technician complaints centered on inadequate shop ventilation. Vehicle exhaust is loaded with thousands of contaminants resulting from the incomplete combustion of fuel. The primary culprit and largest component of exhaust that threatens employee health is carbon monoxide. Carbon monoxide (CO) is a colorless, odorless, tasteless gas and one of the most common industrial hazards. Mild poisoning can cause such symptoms as nausea, dizziness or headaches, while severe poisoning can result in brain or heart damage or even death. Aside from the serious effects of CO exposure, it’s important to also consider that even moderate levels of CO can be responsible for employees not being attentive at times, which makes them more likely to make mistakes or to have accidents. As the amount of CO in the air increases, more serious symptoms may develop, such as lack of coordination, weakness and confusion. Therefore, it is easy to see how poor shop ventilation can translate to accidents and reduced productivity (and more expenses). HOW MUCH CO IN THE AIR IS ACCEPTABLE? CO is not a naturally occurring component of air. It results from incomplete combustion of burning materials. OSHA sets 35 parts per million of air (ppm) as the maximum CO level for shop areas. Office areas, including the Parts Department, would fall under the ASHRAE indoor air quality standard, which is 10 ppm. The NHADA WCT Loss Prevention Department would recommend that dealers take action to reduce CO levels to below 20 ppm in the shop and to as close to 0 ppm as possible in other areas of the dealership. HOW CAN SHOP AIR QUALITY BE IMPROVED? The following are a few ways that you can improve air quality in your shop: • Properly service and maintain the shop exhaust ventilation system to ensure optimal performance throughout the winter months. • Regularly inspect and replace any defective exhaust hoses. • Install CO level direct reading monitors to identify areas where CO is likely to be present. Areas to consider are the service department, customer waiting areas and parts department. If levels exceed the levels mentioned above, mitigation efforts should be made. • Demand and enforce that all technicians use exhaust hoses when vehicles are running in the shop, unless they are coming and going — NO exceptions! Good air quality is an essential ingredient for a safe and healthy work environment. Members must ensure that both adequate shop ventilation and proper employee work practices maintain CO at the lowest possible level. The NHADA Loss Prevention staff is available for carbon monoxide monitoring upon request. Contact us at (603) 224-2369 or email me at bduplessis@nhada.com. Good air quality is an essential ingredient for a safe and healthy work environment. 13
Every year, around this time, we review the top 10 most common wage and hour violations from the last year. The Christmas season may be over, but employers could still end up with coal in their stockings. That is because the stakes for noncompliance with state and federal wage and hour laws are higher than ever. Employers need to be aware of these common violations to stay in compliance and avoid disruptive wage claims, as well as expensive civil penalties and wage adjustment orders from the Department of Labor. Note: This outline focuses on violations of state (New Hampshire) wage laws. The USDOL enforces the Federal Fair Labor Standards Act (FLSA) and USDOL investigators have also been busy with workplace investigations in New Hampshire. While USDOL investigations can involve some of the same issues, this outline focuses on the most common violations under state (New Hampshire) law and how to avoid them in the new year. 5. FAILURE TO HAVE A JOINT LOSS MANAGEMENT (SAFETY) COMMITTEE *RSA 281-A:64, III Problem: Employers with 15 or more employees must have a Joint Loss Safety Committee to review and address workplace accidents and related safety issues. Recommendation: Covered employers should ensure that their safety committee is organized, they hold meetings at least quarterly, and they properly maintain meeting minutes (posted, then filed). Those records must be available for NHDOL inspection. 4. FAILURE OF EMPLOYERS TO REPORT OR OBTAIN A WORKERS’ COMPENSATION POLICY *RSA 281-A:5 Problem: Employers in New Hampshire with at least one employee need to secure workers’ compensation insurance. Failure to secure or maintain that insurance could result in civil penalties and it could also result in unfunded liabilities to cover the employee’s medical bills and lost wages. Recommendation: Along with other items on your risk management checklist, this item should be the top priority for your organization. Insurance should be secured, premiums should be paid in a timely manner, and information requests as required by the carrier should be provided to avoid gaps in coverage. 3. FAILURE TO HAVE A WRITTEN SAFETY PLAN AND SAFETY SUMMARY FORM, IF REQUIRED *RSA 281-A:64, II AND LAB 602.01, 602.02, 603.02 AND 603.03 Problem: In addition to recording injuries, illnesses and responses to workplace hazards, employers must BY JIM REIDY, ATTORNEY SHEEHAN PHINNEY, NHADA SILVER PARTNER WAGE AND HOUR VIOLATIONS IN NEW HAMPSHIRE (And How to Avoid Them in 2025) HIGHLIGHTING 5 OF THE TOP 10 14
document their safety policies and compile them in a written safety program. Many employers neglected to maintain their safety committees, written safety programs and to ensure they had a safety summary form on file with NHDOL. Recommendation: Employers with 15 or more employees must maintain a written safety program. The written safety program must be reviewed and updated at least every two years, and the employer must keep records of the dates on which the written safety program is reviewed and updated. Employers with 15 or more employees must file a safety summary form with the NHDOL. The safety summary form can be filed with NHDOL electronically and must be available for inspection by NHDOL. Employers with a current (2011 or later) safety summary form on file with NHDOL do not have to file again. 2. FAILURE TO KEEP ACCURATE RECORDS OF ALL HOURS WORKED (Not recording meal breaks taken; not paying for breaks of less than 20 minutes in duration.) *RSA 279:27 AND LAB 803.03 Problem: This is a common violation but in recent years it has taken on a new dimension because of split shifts and remote work. State law requires employers to keep a daily “true and accurate record” of all hours worked for employees (specifically hourly and salaried nonexempt employees). These records must be maintained for at least three years and be available to NHDOL upon request. The problem in recent years has been tracking and accurately recording those hours. This issue comes up in a number of different ways, including not accounting for meals and other short breaks, as well as time spent working on a hybrid or remote basis. Recommendation: As you know, employers in New Hampshire must permit employees to take a 30-minute (unpaid) meal break after five consecutive hours of work in a workday unless it is feasible for the employee to eat while working and they are permitted to do so. Meal breaks must be recorded on daily time sheets, just like the start and end times for all hourly and salaried nonexempt employees. Note that if an employee eats while working and does not take a break of at least 20 minutes, all that time must be paid. Timekeeping is the employer’s obligation even when the employer expects the daily record to be kept by the employee. Therefore, employers have to be sure the daily time records entered by employees are accurate and changes are only permitted if agreed to (New Hampshire law says the change must be initialed) by the impacted employee. The issue with meal break recording errors and other time recording mistakes is that employees may not have received all wages due, which means the employer could be fined for not permitting the breaks and not recording time properly and ordered to pay back wages. If the NHDOL looks back at all covered employees for each workday over the last three years, these fines and wage adjustments can add up. This can be both expensive and unnecessary (because the employees likely took breaks). (Note: If the employer can prove meal periods were actually taken there might be civil penalties for incomplete records, but wage adjustments may not be due.) ... And the number one worst (most common) wage and hour violation from 2024 is ... 1. FAILURE TO HAVE WRITTEN NOTIFICATIONS OF RATE OF PAY OR CHANGES *RSA 275:49 AND LAB 803.01(G)(1) Problem: Employers don’t always have the documentation to prove that an employee was notified in writing at the time of hire — and before any subsequent changes — of their rate of pay. This information is usually contained in an offer letter but especially with rushed hires or transitions in HR, this documentation has been overlooked. State law requires a written notice at the time of hire, signed by the employee, that contains the employee’s wage rate, pay date, pay period and general description of fringe benefits. This must also be documented in the same manner in advance of any changes to those arrangements. Those documents must be maintained in personnel files and available for inspection. Recommendation: This is an easy fix. Make sure that all involved in hiring and onboarding and those involved with subsequent pay changes are aware of this requirement, and this is included in your HR compliance audit checklist. Thank you to NHDOL General Counsel John Garrigan, NHDOL Director of Inspections Division Lexie Rojas and the NHDOL Wage and Hour Division staff for the useful information and statistics for this year’s list. A special thanks also to my law partner, Attorney Jen Moeckel, for her assistance with this update. This article is intended as a general summary only and is not a substitute for specific legal advice. This article has been abbreviated for usage in this publication. To read the complete list of the New Hampshire Top 10 Violations, scan the QR code. www.nhada.com/news/2024-top-ten-list-ofwage-and-hour-violations-in-new-hampshire 15
THE CRITICAL ROLE OF DEAL JACKET AUDITS Ensuring Compliance and Mitigating Risk BY BRAD MILLER, CHIEF COMPLIANCE/REGULATORY OFFICER, COMPLYAUTO In the fast-paced world of automotive retail, deal jacket audits are becoming increasingly important for dealerships looking to stay compliant and avoid regulatory and consumer risks. This article examines why these audits matter, the challenges dealerships encounter in conducting them effectively and recent regulatory actions highlighting their significance. WHAT IS A DEAL JACKET AUDIT? Deal “jackets” are comprehensive files containing all documentation related to a vehicle sale or lease, and they serve as the primary record of each transaction. These are essential records of a vehicle sale or lease, and they tell a story of compliance and of process. These files contain disclosure documents, contracts, registration and titling information, financial information, receipts and other transaction records, and can easily run into hundreds of pages. Many dealerships conduct audits of these deal jackets for a variety of reasons. This means that they will (either themselves or, more likely, with the assistance of an outside expert) review a selected number of deal jackets, and review them in detail to look for compliance, business and other issues. Why only a select few? Because deal jacket audits are complicated, time-consuming and difficult to do properly. Ideally, dealers would review each deal jacket carefully, but as a practical matter, there has never been time to do so (until now). WHY AUDIT DEAL JACKETS? Auditing deal jackets is essential for several reasons: 1. Compliance Verification: Regular audits ensure that all required documents are present and properly completed and signed, demonstrating dealership compliance with state and federal regulations. 2. Fair Lending Documentation: An audit can ensure that dealers properly document steps taken in the sales and leasing process to ensure fair lending practices. 3. Risk Mitigation: By identifying and correcting errors or omissions early, dealerships can reduce the risk of costly penalties and legal actions. By addressing issues like Red Flags compliance and identity verification, dealers can also address potentially costly business risks from identity theft and other fraudulent activities. 4. Process Improvement: Audits can reveal inefficiencies or recurring issues in the sales and F&I processes, allowing for targeted improvements. They can also help identify issues with lender requirements, stipulations or errors that will delay payment from a lender. 16
5. Customer Protection: Ensuring all disclosures and agreements are properly executed helps protect both the dealership and its customers from potential disputes. By identifying and addressing issues such as missing signatures, incorrect consumer disclosures or improper versions of documents, dealers can ensure customer satisfaction and reduce the likelihood of consumer litigation. THE COMPLEXITY OF DEAL JACKET AUDITS Conducting thorough and effective deal jacket audits is a complex task that requires a unique and comprehensive understanding of the applicable state and federal law, dealership operations, F&I products and practical requirements. Deal jackets must be thoroughly reviewed for dozens of legal and regulatory issues. To be done correctly, you must ensure you are working with a company that has: 1. Expertise in Dealership Operations: A thorough understanding of the entire vehicle sales process — from the initial customer contact through to final delivery, as well as post-delivery matters like financing and titling issues — is essential for identifying potential challenges. 2. Knowledge of State and Federal Laws: Auditors must be well-versed in the myriad of regulations governing automotive sales, including: » Truth in Lending Act (TILA). » Equal Credit Opportunity Act (ECOA). » Fair Credit Reporting Act (FCRA). » Used Car Rule. » Privacy Rule. » Unfair and Deceptive Acts and Practices laws (UDAP). » State-specific laws and regulations. 3. Attention to Detail: Each document in a deal jacket must be scrutinized for accuracy, completeness and compliance with current regulations. 4. Understanding of F&I Products: Knowledge of various finance and insurance products, their documentation requirements, and associated regulations is essential. 5. Familiarity with Evolving Regulations: The regulatory landscape is constantly changing, requiring auditors to stay informed about new rules and interpretations. 17
Given that the average deal jacket consists of hundreds of pages of complex and detailed documents, conducting a thorough and useful audit that will produce helpful results for the dealer is no small task, even for a seasoned expert. Manual deal jacket audits, conducted by experienced professionals, can easily take several hours to complete. RECENT REGULATORY ACTION HIGHLIGHTS AUDIT IMPORTANCE Recent regulatory actions have underscored the significance of thorough deal jacket audits. In a notable recent case filed in August 2024, the Federal Trade Commission (FTC) brought an enforcement action against one of the largest dealership groups in the United States, for alleged violations related to F&I practices. The FTC’s complaint alleged several issues, including: • Charging consumers for F&I products without their consent. • Misrepresenting the cost and coverage of F&I products. • Discriminatory pricing practices. Importantly, the FTC discussed the fact that dealerships in this group conducted deal jacket audits but criticized their scope and adequacy — and the follow-up related to those reviews. This enforcement action is a stark reminder of the potential consequences of insufficient internal controls and highlights the critical role that thorough audits play in maintaining compliance. BEST PRACTICES FOR EFFECTIVE DEAL JACKET AUDITS To ensure the effectiveness of deal jacket audits, dealerships should consider the following best practices: 1. Establish a Regular Audit Schedule: Conduct audits on a consistent basis, not just in response to identified issues. It is only by looking for issues over time that patterns will be revealed. 2. Audit a Range of Personnel and Issues: You should also ensure that you are getting a sampling of different stores, deals with different sales and F&I managers, and different types of deals (new, used, finance and lease) to ensure you are checking for a full array of issues. 3. Use Comprehensive Checklists: Ensure that anyone who conducts an audit on your behalf has developed and maintained detailed checklists covering all aspects of compliance and documentation requirements at the state and federal levels. 4. Leverage Technology: Engage experts who are utilizing the latest technology, systems and specialized audit software to streamline the process and improve accuracy. 5. Engage External Experts: Consider periodic third-party audits to provide an objective assessment and identify potential blind spots. 6. Foster a Culture of Compliance: Emphasize the importance of accurate documentation and regulatory compliance throughout the organization. CAN I UTILIZE TECHNOLOGY TO HELP? Deal jacket audits are an essential component of a dealership’s compliance and risk management strategy. You can accomplish this critical task efficiently and cost-effectively with ComplyAuto’s new tool, Guardian. With Guardian, ComplyAuto has developed patented technology and tools to deliver the first AI-based deal jacket review software. Guardian is faster, more thorough and far more cost-effective than even the best human auditors. It not only looks for more issues but also provides incredible insight through reporting, dashboards, automated mitigation and more. By strengthening audit procedures and creating a culture focused on compliance, dealerships can safeguard against regulatory risks, enhance their day-to-day operations and earn greater trust from their customers. In light of recent enforcement actions, the importance of these audits cannot be overstated, making them an essential practice for modern auto retailers. Contact ComplyAuto today to learn more about how to leverage ComplyAuto’s experience and expertise, along with the power of AI, by deploying Guardian. Deal “jackets” are comprehensive files containing all documentation related to a vehicle sale or lease, and they serve as the primary record of each transaction. 18
One of the ways NHADA supports ASE-accredited automotive programs in New Hampshire is by providing instructors with 20 hours of required industry update training each year. This past Nov. 6-7, we held our annual training at Nashua Community College (NCC). High school automotive and collision instructors from across the state gathered for this two-day event, which included both classroom and hands-on training sessions. This year, we adopted a new approach by including a broader range of automotive training sectors that are often overlooked but play a vital role in building a stronger workforce in New Hampshire. NHADA Bronze partner Sullivan Tire®/Lift Works Corp. joined us to offer career path insights from the aftermarket perspective, covering roles such as parts, service advisors and the growing position of the “mobile technician.” This unique role requires not only a skilled technician but also someone with excellent customer service abilities, as they work on the road without the support of a service advisor. They showcased some of the cutting-edge technology used in their mobile service vans and gave us a glimpse into a day in the life of a mobile technician. We were also joined by NHADA member Souhegan Valley Motorsports, who provided an in-depth look at the powersports industry. In addition to exploring numerous career opportunities in powersports, we had the chance to see firsthand the advanced technology being incorporated into new ATVs and side-by-sides. NCC provided hands-on lab training, giving instructors a refresher course on various types of welding. Instructors had the opportunity to practice MIG, TIG and stick welding with guidance from one of NCC’s experienced instructors. With some friendly competition, NCC awarded prizes to the top three welders. In response to instructors’ requests for more information on alternative career paths for their students, we were joined on day two by NHADA Bronze partner Brown and Brown Dealer Services, who offered an in-depth training session on the role of a service advisor. Handouts were provided, and the interactive lecture encouraged active participation from all the instructors in the room. Ford Motor Company also joined us to provide updates on their high school automotive curriculum (ACE) and shared exciting news about their upcoming automotive competition. Lastly, we reserved some time for David Lilly, the cluster chair for Transportation, to lead discussions on topics such as curriculum development, transportation competencies and SkillsUSA. This session was invaluable as it helped unify our automotive training programs across the state and elevated the quality of education provided to our students. All in all, it was a fantastic two days. The instructors left with valuable new knowledge, a chance to refine older skills and meaningful connections with colleagues from around the state. The next training will be held this April, and we are constantly looking to bring in fresh content. If you or someone you know might be interested in providing industry training to our instructors, please reach out to me at amemmolo@nhada.com or (603) 224-2369. UNPACKING THE 2024 AUTOMOTIVE INSTRUCTOR TRAINING BY ADAM MEMMOLO WORKFORCE DEVELOPMENT COORDINATOR, NHADA 19
TAX AND POLICY CHANGES What Lies Ahead for Auto Dealers President Trump’s re-election campaign leaned heavily on being pro-business on tax and policy reform. However, predicting what actual changes will come from the new administration is challenging. One of the cornerstones of the campaign’s proposals was the extension of the 2017 Tax Cuts and Jobs Act (TCJA). The TCJA has generally been beneficial to dealers but is scheduled to sunset after 2025. There have also been a number of tax changes and policy proposals floated by the Trump Administration that could impact the auto dealer industry. Below, we’ll review some of the expiring TCJA provisions and Trump Administration proposals that are likely to have a significant impact on dealers and their businesses. KEY TCJA PROVISIONS CURRENTLY IN PLACE Estate Tax Limit: The estate tax limit was doubled as part of the TCJA, and upon its expiration, these limits will revert to the old threshold, albeit indexed for inflation. Even with dealership prices cooling off over the last year, many dealers are over the current threshold of $13.6 million, and almost all dealers would likely be over the limit if this is cut in half. Qualified Business Income Deduction (QBI): This is the 20% deduction that’s generally available to pass-through business owners. This effectively limits your pass-through income to 80% of whatever you earn, and has been a key benefit for dealers, who are largely operating their dealerships as S corporations. Bonus Depreciation: The TCJA initially allowed for 100% bonus depreciation but has been gradually phasing that out. In 2024 and 2025, bonus depreciation will drop to 60% and 40%, respectively. However, even with the phase-out, the rules around the property qualifying for bonus depreciation were broadened significantly, making it much more beneficial to undertake cost segregation studies on dealer facilities, even at the reduced rates. SALT Deduction Cap: One of the more controversial provisions of the TCJA was the $10,000 cap on the state and local tax (SALT) deduction, which limits the amount taxpayers can deduct for state and local taxes. The cap on the SALT deduction has significantly impacted residents of high-tax states, and has helped to spur the various pass-through entity (PTE) tax regimes that have been implemented in the Northeast. Again, all of these provisions are scheduled to sunset after 2025 unless Congress takes action to extend them. “Tax extenders” have always been part of the political game, and these are expected to be treated in a similar manner, although hopefully Congress acts quickly enough to allow for informed tax planning this time around. TAX AND POLICY PROPOSALS Renewal of 100% Bonus Depreciation: Under the first Trump Administration, there was a push to extend the 100% bonus depreciation for businesses, and the intent would be for this to become permanent. This provision would offer flexibility to many businesses but would be most impactful for dealers that are upgrading their facilities, whether through renovation or new build, or looking to acquire new dealerships. Removal of SALT Deduction Cap: The Trump Administration has proposed eliminating the $10,000 cap on the SALT deduction, which would benefit taxpayers in high-tax states who have been disproportionately impacted by the cap. It is not clear how such a move would impact the state PTE taxes, which were at least partially enacted to help circumvent the SALT cap. Tariffs: As of this writing, the North American tariffs have been delayed. They were estimated to add as much as $3,000 to the cost of a new vehicle, which would be a major headwind as the industry contends with BY MATTHEW MARCOULLIER, CPA ALBIN, RANDALL & BENNETT, NHADA SILVER PARTNER 20
IMAGE HERE September 12, 2025 Pease Golf Course Portsmouth, NH SAVE THE DATE! Supports Automotive Education! www.nhada.com/events/golf historically high prices and affordability issues already. When or if these tariffs return remains to be seen. Suspension of Clean Energy Credits: The future of the credits that helped fuel EV demand and offset some of the implementation costs is uncertain at best. These credits have been a target throughout the re-election campaign, and if the Trump Administration gets its way, these are not likely to survive, which will significantly impact the affordability of EVs and related equipment. While it is difficult to predict what will happen, or the timing thereof, the current TCJA provisions are still in effect for the 2024 and 2025 tax years, so there is a baseline for planning over the next year. What comes after is hard to say. Whether changes are from the TCJA expiring, or new proposals being undertaken, it seems certain that the 2026 tax landscape will look vastly different from our current position. In the meantime, dealers should be talking to their advisors to determine how to best prepare themselves for the potential changes ahead. While there will certainly be opportunities to capitalize on, there are also plenty of potential risks. Proactive planning and preparation will help you be positioned for success. Albin, Randall & Bennett’s Dylan Anderson, Sahaley DuPree and Sam Goodine contributed to this article. Proactive planning and preparation will help you be positioned for success. 21
Unfortunately, accidents happen, and as a result, the injured employees may be disabled from work, partially or completely. When we receive an Employer’s Report of Injury and identify it as a potential lost time claim, our Claims Representative, Heather Overson, will meet with the injured employee and explain the benefits that the employee is entitled to under the worker’s compensation statute, including the indemnity benefits available. In order to calculate a compensation rate, our claims team needs to know the average weekly wage of the employee prior to the injury. The New Hampshire Department of Labor requires a wage schedule form to be filled out for 52 weeks of gross wages prior to injury. The employer should include bonuses and commissions in the wage schedule. We will send the wage schedule to our claims contact or payroll department, or you can find it on our website by scanning the QR code. https://cdn2.hubspot.net/hubfs/4829685/ NHADA.com/docs/52_WageSchedule.pdf The average weekly wage is calculated by taking the average of at least 26 weeks but no more than 52 weeks, whichever is more favorable to the injured employee. If the injured employee is disabled from concurrent employment that is covered by a workers’ policy in New Hampshire, they may be entitled to additional disability benefits. NHADA WCT has a way to recover those funds from the state of New Hampshire in September of the following year. WAITING PERIOD The first three days of disability are not paid unless the period of disability continues for 14 days or longer (RSA 281-A:22). However, if the injured employee returns to work within five days of the date of injury in a light duty capacity, then the three-day waiting period is waived (RSA 281-A:23-b). Workers’ compensation disability benefits are based on a seven-day week, so weekends are counted in the calculation of the waiting period. If an employee is injured on a Thursday, seeks treatment and is taken out of work until Monday, when he/she is released to return to full duty, the three-day waiting period applies, and no disability benefits are due. Under the same scenario, if the physician releases the injured employee to return to work in a light-duty capacity on Monday, three days of disability are due. WORKERS’ COMPENSATION INDEMNITY BENEFITS BY DEB HANDRAHAN WCT SUPERVISOR, NHADA 22
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