Gary Kaminsky 2025 TIME Dealer of the Year Nominee WINTER 2025 OFFICIAL PUBLICATION OF THE NEW CAR DEALERS ASSOCIATION SAN DIEGO COUNTY
BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICES FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations FERRUZZO.COM | CALIFORNIA | TEXAS Business Transactions • Buy-Sell Agreements • Entity formation and structure • Shareholder Agreements • Manufacturer approvals and relations Employment Practices • Arbitration agreements • Wage and hour class action lawsuits • Private Attorneys General Act (PAGA) claims • Employee handbooks and compliance Estate Planning • Succession planning for business continuation • Family estate planning (wills and trusts) Tax • Property tax planning, audits and appeals • EDD audits Business Litigation • Consumer Legal Remedies Act lawsuits • Sales and Service Agreements • Disputes before the CA New Motor Vehicle Board • Manufacturer audit disputes • Hearings before the AQMD, RWQC and OSHA Real Estate • Dealership site acquisitions and lease agreements • Lender opinion letters An Automotive Industry Authority For over 40 years, Ferruzzo & Ferruzzo, LLP has been a leading authority in the Automotive Industry. Our team of auto-focused attorneys provide a spectrum of legal services to support every aspect of running and owning your new car and/or truck dealership. Solving Your Challenges, Together
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?® Bob Ludwig, robert.ludwig@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.
©2025 The New Car Dealers of San Diego (NCDA) | The newsLINK Group LLC. All rights reserved. San Diego Dealer is published four times per year by The newsLINK Group LLC for NCDA 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 NCDA, 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. San Diego Dealer is a collective work, and as such, some articles are submitted by authors who are independent of NCDA. 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. CHAIRMAN JOHN SEGAL........................... DISTRICT 3 VICE CHAIRMAN TBD SECRETARY/TREASURER SCOTT KIEFNER..................... DISTRICT 6 PAST CHAIRMAN CHRIS GEORGE...................... DISTRICT 4 BOARD MEMBERS JENIFER BALL......................... DISTRICT 6 ANTHONY BENFATTI............ DISTRICT 1 MATT CRANDALL.................. DISTRICT 2 PAUL DYKE............................. DISTRICT 4 BANU GREWAL...................... DISTRICT 3 GREG KAMINSKY................... DISTRICT 4 JASON MOSSY........................ DISTRICT 5 MANNY SEDANO................... DISTRICT 5 JOHNNY SIEPKER................... DISTRICT 2 NCDA STAFF SCOTT WEBB PRESIDENT DIANA SILVA ACCOUNTING AND ADMINISTRATION MANAGER TYLER GRAY MARKETING & OPERATIONS MANAGER CLAUDIA OLVERA MEETING AND FACILITIES COORDINATOR ROBERT HEINTZ CALIFORNIA SALES TRAINING ACADEMY INSTRUCTOR Contents 10065 Mesa Ridge Ct. San Diego, CA 92121 Tel: (858) 550-0080 Fax: (858) 550-9537 ncda.com 6 14 Publication 13 | 2024-2025 Issue 1 | Winter 5 Chairman’s Letter By John Segal, Chairman, New Car Dealers Association 6 Gary Kaminsky 2025 TIME Dealer of the Year Nominee 10 Fisher Phillips’ Top Predictions for California Workplace Law Developments in 2025 By Fisher Phillips 12 NADA Retirement From Empower 13 Meet District 76 Assemblymember Dr. Darshana Patel 14 Eye and Face Protection Requirements for Employees at Auto Dealerships By Sam Celly, BChE, MChE, JD, CSP, Celly Services Inc. 18 Pre-Hiring Obligations What Employers Should Know Before the First Day By Scali Rasmussen 20 Save the Date: NCDA Golf Tournament + Annual Meeting & Luncheon Wednesday, May 7, 2025 21 Ask Alison: A Case Study — Simpson Automotive Group 22 San Diego Auto Outlook Fourth Quarter 2024 4 SAN DIEGO DEALER
Chairman’s Letter By John Segal, Chairman, New Car Dealers Association Dear Dealer Members, I’d like to join the entire San Diego County dealer community in wishing a heartfelt congratulations to this year’s TIME Dealer of the Year award nominee, Gary Kaminsky. Gary developed a passion for the automotive retail business and an appreciation for hard work from his mother and father, both of whom were mentors who inspired him during his early career. Gary continues his family legacy as one of the co-owners of K Motors, which includes Toyota of El Cajon, Honda of El Cajon and Puente Hills Toyota, as well as Toyota Certified Center of Santee and Honda Service Center of Santee. I hope you’ll take a few minutes to read about Gary and his contributions as both a dealer and a member of the community. Congratulations on this prestigious honor, Gary! I’d also like to thank all the dealers once again who donated to the NCDA PAC to support the association’s efforts. Those contributions were put to good use during the November election to help defeat the San Diego City and County sales tax increase ballot measures, which would have added hundreds of dollars to the total cost of new and used vehicle purchases locally. On a similar note, thank you to each of you who completed the Economic Impact Report survey. The yearly Economic Impact Report is a powerhouse for advocacy efforts, showcasing the vital contributions of franchised new car dealers across San Diego County and throughout California. This report amplifies your positive impact, demonstrating franchised dealers’ essential role in California’s economic success. Looking ahead, I want to encourage each of you to join us for the 2025 NCDA Golf Tournament + Annual Meeting & Luncheon, which takes place Wednesday, May 7, at the Maderas Golf Club in Poway. It’s the most anticipated dealer networking event of the year, and even if you’re not a golfer, you’ll enjoy spending time with fellow dealers and all of the media and support organizations that enrich the retail automotive business during the luncheon. Registration information will appear in your inboxes soon. Sincerely, John Segal NCDA.COM 5
Gary Kaminsky 2025 TIME Dealer of the Year Nominee The TIME Dealer of the Year Award has been called the most prestigious honor a new-car dealer can receive. In partnership with Ally and in cooperation with the National Automobile Dealers Association (NADA), this program honors new-car dealers in America who exhibit exceptional performance in their dealerships and perform distinguished community service. Now in its 56th year, dealers are nominated by members of the ATAE (Automotive Trade Association Executives), and the winner is acknowledged during the opening business session of the NADA convention. TIME, Ally and NADA honor outstanding new-car dealers across America and their unyielding commitment to improving their communities. For 2025, the board of directors of the New Car Dealers Association San Diego County selected Gary Kaminsky of K Motors for their nomination for the TIME Dealer of the Year award. The following contains excerpts of a recent interview with Gary, demonstrating why he was chosen by his peers to represent San Diego County. As the owner and general manager of Toyota of El Cajon, Gary Kaminsky is proud of the organizational culture that has developed over time — a culture where employees feel like they’re cared about and given the resources to be successful. “Creating a supportive work environment for our associates, where they can thrive and advance, has been deeply fulfilling,” Gary explained. Equally as gratifying to Gary is improving the customer experience so that clients enjoy buying a car in a relaxed, friendly atmosphere. “I read a book years ago when I was first starting in the business called ‘Triple Net Profit.’ It explained the three things needed for long-term success — associate satisfaction, customer satisfaction and net profit — in order to get the best associates and keep them happy, and then they take care of your customers.” That made a lot of sense to Gary, and that mindset is at the heart of everything he does today. Having been mentored by both his father and mother, was a blessing. “My father taught me about the overall operations of a dealership,” Gary recalled. “He led by example: honest, optimistic and hardworking.” To this day, Gary makes it a priority to keep the workplace both positive and productive. “I was young when I started in the industry, so I had a chance to make a lot of mistakes and learn along the way.” Gary continued, “There were days when I let my stress show outward, and on those days, my dad would say, ‘What, did your dog die today?’ I’d reply, ‘What are you talking about?’ In his wisdom, my dad would explain, ‘You look really down like you’re unhappy, and everybody’s looking at you, they’re judging you and how you’re feeling.’ My dad always pushed me to try harder, reminding me that a positive attitude is everything.” Gary’s mother worked in the business office of another dealership around the time she first met Bob. She was good with numbers and knew her way around a balance sheet. “My mom taught me the financial aspect of this business, and I am forever grateful for that,” Gary said. Gary remembers the challenging time when his late father, Bob, bought the first store: “He kept trying to bring in a top performer from the outside. Someone who 6 SAN DIEGO DEALER
could come into the store and find great success, quickly. I watched this happen time and time again. Eventually, it came down to my brother and me. We came to work every day doing what was best for the company. I realized then that there were no quick fixes to make a business really successful.” He continued, “There’s nothing wrong with going outside and getting a really talented person, but even better would be to promote somebody from within your organization. An employee who has been given the tools to grow and the resources to succeed.” Today, Gary and his brother, Greg, run the dealership that was acquired by their parents in 1990. “My brother and I are deeply entrenched in the automotive industry, we work hard every day to live up to and honor the family legacy of dedication and hard work that my parents passed along to us,” he said. In 2000, Gary was entrusted to manage Toyota of El Cajon and has been dedicated to upholding the high standards and values that have defined his family’s legacy ever since. The store has received numerous honors, including the coveted Toyota President’s Cabinet Award multiple times. “This distinguished accolade is awarded to only the top 12 Toyota dealerships in the United States and acknowledges overall exceptional performance in sales, customer satisfaction and overall operational excellence,” he said. The Kaminsky brothers’ K Motors auto group also includes new car dealerships, Honda of El Cajon and Puente Hills Toyota in City of Industry, California, as well as two satellite stores, Toyota Certified Center of Santee and Honda Service Center, both in Santee, California. In addition to creating a positive culture for both customers and employees, giving back to the community is something that is important to Gary. His company’s philanthropic programs include community outreach and dealership events. One significant collaboration is with the San Diego River Park Foundation (SDRPF), for which the dealership has committed to planting a tree for every vehicle sold. “This initiative has led to the planting of more than 50,000 trees across our local area,” Gary said. “Notable projects in the Boulder Creek Preserve Habitat, Eagle Peak Ranch and Santee Lakes Recreational Preserve have helped to enhance the natural beauty of our region and contributed to preserving the environment.” The dealership also supports the future SDRPF River Center at Grant Park, a new 17-acre complex in Mission Valley that will offer hands-on nature learning experiences about the river and its wildlife to children and adults from urban communities. Toyota of El Cajon proudly sponsors the local National Night Out event, a free, family-friendly gathering aimed at building strong bonds between the community and law enforcement agencies and the Helen Woodward Animal Center’s signature events, including the Surf Dog Surf-A-Thon and Pawmicon, which raise funds for the organization’s educational programs and humane care and adoption of homeless animals. Gary has also given his employees and residents the opportunity to give back to the community by collaborating with the San Diego Food Bank annual food drive and the Salvation Army’s Angel Tree program which fulfills holiday wishes for children. And he has partnered with Toyota and the Kids in Need Foundation for the “Big Summer Giveback” which provides filled backpacks with school supplies for children in low-income communities. Driving Towards a Greener Future — Toyota of El Cajon relocated in 2009 to become San Diego’s first LEED Green Dealership. From energy efficiency to reduced environmental impact, they’re committed to a cleaner future. NCDA.COM 7
“Through these diverse initiatives, our employees not only cultivate a strong community spirit but also significantly enhance the well-being of our local area, embodying our core values of service and engagement,” he said. It’s easy to see how much Gary cares about his employees, his customers and the community. Because of this, Gary was named as the 2025 TIME Dealer of the Year nominee. When asked what that meant to him, he humbly replied, “In San Diego, we have a great group of dealers. Even though we’re all competitors, we have a respectful relationship amongst everyone. For my fellow dealers to nominate me as a peer, it is a big honor. I’m very appreciative of them, and this means so much to me. Thank you for giving me this honor.” When Gary is not at work, he spends his free time with his wife and two teenage daughters. “Family is everything; children grow up fast, and time with them is fleeting. I want to be there for them, even if it’s watching TV together. I try to spend as much time with my family as I can,” Gary said. Driven by Compassion — Gary Kaminsky, owner and general manager of Toyota of El Cajon, is a proud supporter of the Helen Woodward Animal Center, a San Diego nonprofit providing humane animal care, adoption services and therapeutic programs for the community. Honoring Service, Empowering Families — In partnership with Toyota, Hiring Our Heroes was proud to present a 2023 Toyota Highlander to a deserving military family in El Cajon. 8 SAN DIEGO DEALER
Fisher Phillips’ Top Predictions for California Workplace Law Developments in 2025 By Fisher Phillips Fisher Phillips’ California thought leaders have pulled together their 2025 top predictions for the year so that employers can be better prepared. CALIFORNIA WILL RETAKE THE LEAD ON REGULATING AI IN THE WORKPLACE AND BEYOND While a California bill (AB 2930) aimed specifically at the use of artificial intelligence in employment did not make the cut in 2024, it will certainly be back this year. The lawmaker who introduced the groundbreaking legislation — which would have required employers to provide notification (and 10 SAN DIEGO DEALER
perhaps an accommodation) to workers when AI is used in certain critical ways during hiring or employment that she plans to reintroduce the bill in 2025. Another California bill (SB 1047), which came tantalizingly close last year to becoming law, would have required developers of high-risk AI models to conduct safety tests and implement shutdown mechanisms to prevent critical harms. While Gov. Newsom vetoed the bill in September, he said in a veto message that safety protocols must be adopted, and that he was committed to finding “the appropriate path forward, including legislation and regulation.” Either by legislation or regulation, California will join and likely surpass other jurisdictions that have recently enacted their own requirements in the absence of comprehensive federal regulation. THE GOLDEN STATE WILL REVIVE ITS ROLE AS THE LEADER OF THE “TRUMP RESISTANCE” California will lead the blue states resisting changes by the incoming Trump administration, in line with Gov. Newsom’s Nov. 6 proclamation. Most of the substantive labor protections in California are already stronger than federal law, but the state will attempt to push the legal envelope into areas of federal control — such as protecting immigrant workers and finding ways to make it easier for employees to unionize. Specifically, Newsom and the state legislature kicked off a special session on Dec. 2 to propose a “new litigation fund of up to $25 million for the California Department of Justice (DOJ) and state agencies to defend California from unconstitutional federal overreach, challenge illegal federal actions in court and take administrative actions to reduce potential harm.” Legislation that establishes the fund was expected to be signed into law before Jan. 20. CALIFORNIA WILL RAMP UP PRIVACY EFFORTS ON BOTH OFFENSIVE AND DEFENSIVE FRONTS California privacy officials recently pushed forward key initiatives that could impact certain businesses and employers, including by initiating formal rulemaking that would significantly impact those using resume screening and other automated decision-making technology. These regulations will ultimately only apply to businesses that are subject to the California Consumer Privacy Act. In addition, while we expect to see a renewed push for a federal privacy law, the aim of this legislation largely will be to supersede the patchwork of state laws on the books and reduce the perceived administrative burden of compliance — particularly for broad laws like California’s. Any such federal law would avoid touching on employment-related data or providing a private right of action, sparking California and other blue states to file suit to maintain their own comprehensive laws and retain as much power as possible. THE STATE WILL FURTHER EXPLORE INDUSTRY-SPECIFIC REGULATION Labor advocates succeeded in California this year with the creation of a Fast-Food Council, a fast-food specific minimum wage and a healthcare minimum wage. In a tough environment for union organizing (which may be made even tougher under a second Trump administration), labor advocates will look to explore other creative ways to legislate specific working standards for other industries. For example, the Los Angeles City Council voted on Dec. 11 in favor of a motion that brings the city one step closer to increasing the minimum wage rate for hotel and airport workers to $22.50 per hour starting July 1, 2025, followed by annual increases until reaching $30 per hour in 2028 — just before the city hosts the 2028 Summer Olympics. WANT MORE? Read Fisher Phillips’ entire FP Workplace Law Forecast 2025 for our predictions for a wide range of practice areas and industries. Scan the QR code. https://online.flippingbook.com/view/973083376/ Check out Fisher Phillips’ Employer Cheat Sheet to learn more about all the new workplace laws that took effect on Jan. 1 in California and beyond. Scan the QR code. https://www.fisherphillips.com/en/news-insights/employercheat-sheet-for-workplace-laws-taking-effect- january-1.html CONCLUSION Fisher Phillips will continue to monitor developments related to all aspects of California workplace law. Make sure you are subscribed to Fisher Phillips’ Insight System at www.fisherphillips.com/en/subscribe.html to get the most up-to-date information. If you have questions, contact your Fisher Phillips attorney or any attorney in our California offices. NCDA.COM 11
Contact your dedicated NADA Retirement Director today Todd Adrian I 970-581-3548633 I Todd.Adrian@empower.com As they do each fall, the IRS recently announced adjustments affecting the dollar limitations on 401(k) plans, IRAs, and other retirement-related items for tax year 2025. The changes from 2024 to 2025 are summarized below. The contribution limit for employees who participate in their 401(k) plan increased to $23,500, with the catch-up contribution limit remaining at $7,500 for employees age 50 and up. IRA contributions remained at $7,000, with a catch-up contribution limit of $1,000. For lower- and moderate-income employees, the income limit for the saver’s credit will increase to $79,000 for married couples filing jointly and $39,500 for singles. As a business owner and plan sponsor, you may find that a few key changes could impact your personal situation: • The Annual Compensation Limit affecting 401(k) plans has been increased to $350,000. • The Limitation for Defined Contribution Plans has been increased to $70,000. • The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase from $168,600 to $176,100. This was brought to you by the NADA Retirement Program from Empower, our partner for dealership 401(k) solutions. Empower provides service excellence, constant innovation, thought leadership and outstanding people to help plan sponsors and participants get involved in and help plan for their financial future. The National Automobile Dealers Association and Empower have created a unique relationship through which Empower offers flexible, competitive 401(k) plans with an award-winning service model and fiduciary support at a negotiated NADA member price. If you work with a local financial professional, be sure to ask them about the NADA Retirement Program or visit nadaretirement.com. Description 2024 2025 Maximum Pretax 401(k) Contribution (not including catch-up contributions for participants age 50 and older) $23,000 $23,500 Catch-Up Contribution Limit (for participants age 50 or older) $7,500 $7,500 Annual Addition Dollar Limit (not including catch-up contributions for participants age 50 and older) $69,000 $70,000 Compensation Limit $345,000 $350,000 Compensation Limit for Highly Compensated Employees $155,000 $160,000 Compensation Limit for Key Employee Officers $220,000 $230,000 Social Security Wage Base $168,600 $176,100 Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/ SIPC. EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice. “EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America. ©2024 Empower Annuity Insurance Company of America. All rights reserved. 460000-FLY-WF-3761497-1124 RO4045318-1124 12 SAN DIEGO DEALER
Meet District 76 Assemblymember Dr. Darshana Patel Assemblymember Dr. Darshana Patel recently attended the 2025 San Diego International Auto Show with her daughter. Dr. Darshana R. Patel was elected in November 2024 to represent the 76th Assembly District in northern San Diego County. The district spans diverse communities, including the cities of Escondido, San Marcos and San Diego, as well as the unincorporated areas of Del Dios, Elfin Forest, Fairbanks Ranch, Harmony Grove, Lake San Marcos and Rancho Santa Fe. Dr. Patel serves on the following Assembly committees: Budget, EDGHI (Economic Development, Growth and Household Impact), Education, Higher Education, Health, Rules, and Budget Subcommittee 3 on Education Finance. A research scientist, school board president and dedicated community leader, Dr. Patel brings a unique blend of expertise and compassion to public service. As the daughter of immigrants, she experienced firsthand the challenges of building a new life in California. Her journey was marked by tragedy at an early age when she lost her mother at 14 — a loss that inspired her pursuit of medical and health research. After earning a B.A. in biochemistry from Occidental College and a Ph.D. in biophysics from the University of California, Irvine, she launched a successful career in biotechnology research before transitioning to community leadership. In 2016, as the Poway Unified School District grappled with financial mismanagement and criminal embezzlement, Dr. Patel ran for the school board to help restore trust and effective governance. Elected as a Trustee, she focused on stabilizing the district’s finances, rebuilding governance structures and navigating the educational challenges of the COVID-19 pandemic. Her efforts earned her widespread community support, leading to her reelection in 2020 and her role as school board president. Beyond her local district, Dr. Patel has been a tireless advocate for educational equity and community engagement. She serves as president of the San Diego County School Boards Association and on the California Commission on Asian and Pacific Islander American Affairs, where she champions policies to promote inclusion and opportunity. She has also contributed to public safety as a member of the San Diego Police Department Northeastern Division Captain’s Advisory Board and has held leadership roles on the Rancho Peñasquitos Planning Board and Town Council. Dr. Patel lives in San Diego with her husband and their three daughters. NCDA.COM 13
By implementing comprehensive safety measures, we can reduce the risk of injury and promote a safe working environment. Eye and Face Protection Requirements for Employees at Auto Dealerships By Sam Celly, BChE, MChE, JD, CSP, Celly Services Inc. BACKGROUND Eye injuries in the workplace can have severe consequences, including permanent vision loss. According to the CDC, over 2,000 workers sustain job-related eye injuries daily, leading to significant downtime and economic loss. Implementing proper eye protection and eyewash stations is crucial to ensure safety and compliance with OSHA regulations. This article outlines the requirements for eye protection and eyewash stations at your dealership and why they are critical. THE LAW ON EYE AND FACE PROTECTION Employees working in locations where there is a risk of receiving eye injuries such as punctures, abrasions, contusions or burns as a result of contact with flying particles, hazardous substances, projections or injurious light rays, which are inherent in the work or environment, shall be safeguarded by means of face or eye protection. Suitable screens or shields isolating the hazardous exposure may be considered adequate safeguarding for nearby employees. Note: Anyone at risk of an eye injury needs protection! 14 SAN DIEGO DEALER
CAN I WEAR NORMAL PRESCRIPTION LENSES/FRAMES INSTEAD? NO. Normal prescription lenses and frames DO NOT meet safety requirements, are not strong enough and haven’t been tested to ANSI standards. Prescription safety glasses that meet ANSI standards [ANSI Z87-2+] or over-the-glasses safety glasses/goggles may be worn as a substitute for safety glasses/goggles. EYEWASH STATIONS Cal/OSHA requires eyewash stations (EWS) where employees may encounter corrosive chemicals and specifies requirements for eyewash stations, including accessibility and functionality criteria. Battery charging, battery filling, used battery storage and use/dispensing of corrosive chemicals or irritants are processes that require the installation of an eyewash station. In general, Cal/OSHA refers to ANSI standards as the widely accepted guideline for the proper selection, installation, operation and maintenance of emergency eyewash station equipment. Note: During routine inspections, remind employees to keep the area clear. DOES THE PARTS DEPARTMENT NEED AN EYEWASH? YES. A big box warehouse store with multiple outlets in California was cited by Cal/OSHA for failure to have eyewash stations. The employer appealed to the California Occupational Safety & Health Appeals Board (COSHAB) stating that the eyewash standard does not apply as the chemicals are merely unloaded, unboxed and placed on shelves in sealed containers by employees. COSHAB held that the employees could be exposed to leaks and spills from packages damaged in transit and when employees unpack these cases. Employees involved in cleanup in the warehouse where there is a spill have the potential of an eye injury from corrosive and irritating chemicals, hence the requirement of an eyewash in the warehouse. Safety Glasses • Basic protection against flying objects and large particles. • Must meet ANSI Z87.1 standards. • Limitations include gaps allowing potential entry of chemicals and vapors. Safety Goggles • Provides basic protection of safety glasses but includes 360° coverage around the eyes with no gaps. • Additional protection to eyes against chemical splashes (i.e., battery explosion) but doesn’t provide protection to the face. • Ideal for use in scenarios involving battery handling and chemical exposure. Face Shields • Secondary protection, used in conjunction with safety glasses or goggles. • Essential for tasks involving splashing or spraying of hazardous materials. • Shouldn’t be used alone or in place of safety glasses/goggles. Welding Goggles/Helmets • Required for protection during welding activities. • Goggles: Used with OXYGEN torches when cutting or welding. Shade protection of 3 to 6 (depending on plate thickness) to EYES. • Helmets: Used with GAS TUNGSTEN torches when welding. Shade protection of 7 to 10 (depending on arc current) to EYES and FACE. TYPES OF EYE PROTECTION Employees are often exposed to hazards such as flying particles, chemical splashes and intense light from welding operations. These hazards make appropriate eye protection necessary. EYEWASH STATION (EWS) SELECTION Water Temperature • Tepid (60-100° F). Type • Plumbed or wall-mounted tank. • Plumbed units are generally better and are preferred where water lines are available. Flow • Should wash both eyes at no more than 8” above the spray-head. • Eyewash tester can be used to ensure these two requirements are met. • Flow needs to deliver at least 0.4 gallons of water/minute for 15 minutes. • Flow pattern should be 33-55 inches from the floor. Capacity • Only applicable if using a tank system: minimum capacity of 6 gallons. Operation • Can be operated hands-free with a stay-open valve that activates in under 1 second. Covers • Must have a cover that protects spray heads from airborne contaminants. • Covers must move freely enough to be pushed open by the flow of water. NCDA.COM 15
EYEWASH STATION (EWS) LOCATION 1 • Within 10 seconds from the hazard (about 55 feet). 2 • On the same plane as the hazard. 3 • Have a path that is unobstructed: • In some instances, a free-swinging door with no handles may be allowed. • If the chemical hazard is caustic (such as battery acid), the eyewash station needs to be available directly and not through a door. Clearance • At least 30 inches clearance on all sides from any obstruction. • 48 inches from the back wall or nearest permanent obstruction. • 27 inches of knee clearance below the unit. Identification • Must be in a well-lit area and include a highly visible sign. • A “DO NOT BLOCK” parameter is highly recommended to ensure clearance. EWS MAINTENANCE, CAUTIONS AND COMMON MISCONCEPTIONS Inspect and perform weekly activations. A weekly maintenance/ activation log needs to be maintained, and 90-day flushes for wall-mounted units also need to be performed/documented. • Any valves on the supply line to plumbed units need to have their handles removed. • Water hoses, sinks, faucets, showers and eyewash bottles DO NOT comply with Cal/OSHA standards. • Handheld drench units support but do not replace a dedicated EWS. • A single step into an enclosure where EWS can be accessed is not considered to be an obstruction. • HOWEVER, this must also meet wheelchair accessibility requirements where applicable. • The PARTS department dealing with any chemicals that can cause corrosion, severe irritation or permanent tissue damage (battery acid) also needs a dedicated EWS. CONCLUSION Adhering to these guidelines for eye protection and eyewash stations is essential to safeguard your employees from potential eye injuries and ensure regulatory compliance. By implementing comprehensive safety measures, we can reduce the risk of injury and promote a safe working environment. This article does not cover all necessary elements of the standard. We merely summarize some important elements. Ref: CAL/OSHA: Title 8 CCR 5162, 3382 FED: 29 CFR 1910.151(c), 133 (a) (1) ANSI: Z87-1, -2+, 358.1-2014 DISCLAIMER: The contents of this newsletter are for informational purposes only and are not to be considered as legal advice. Employers must consult their lawyer for legal matters and EPA/OSHA consultants for matters related to Environmental, Health & Safety. The article was authored by Sam Celly of Celly Services Inc., who has been helping automobile dealers across the United States comply with EPA and OSHA regulations for over 38 years. Sam is a certified safety professional (No. 16515) certified by the National Board of Certified Safety Professionals. Sam received his BE (1984) and MS (1986) in chemical engineering, followed by a J.D. from Southwestern University School of Law (1997). Sam is a member of the American Chemical Society (No. 31176063), American Industrial Hygiene Association (No. 124715), and National Association of Dealer Counsel (NADC). Sam also serves on the Board of Orange County American Industrial Hygiene Association and on the California Industrial Hygiene Council (CIHC). Our newsletters can be accessed at www.epaoshablog.com. Your comments/questions are always welcome. Please send them to sam@cellyservices.com. 16 SAN DIEGO DEALER
RETAIL WARRANTY REIMBURSEMENT Armatus provides the industry’s only turn-key solution for retail warranty reimbursement submissions. Our dedicated staff and proprietary software guarantee you will achieve an optimized result. OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you ÙFully Contingent Fee: You only pay when you are approved ÙOptimization: Proprietary Software guarantees you the best result ÙSpeed: No one completes a submission faster ÙData Governance: Fully FTC compliant ARMATUS WORKS WITH 46% OF CA’S DEALERS ARMATUS HAS COMPLETED 1,713 SUBMISSIONS IN CA ON AVERAGE, CA DEALERS ADD $170,232 IN LABOR UPLIFT ANNUALLY ON AVERAGE, CA DEALERS ADD $198,744 IN PARTS UPLIFT ANNUALLY Exclusively Licensed By: (888) 477-2228 info@dealeruplift.com WWW.DEALERUPLIFT.COM
Pre-Hiring Obligations What Employers Should Know Before the First Day By Scali Rasmussen California employers are used to being extra careful with employee-related actions — policies are detailed, managers are trained, and processes are designed to stay compliant. But when it comes to pre-hiring, especially in fast-paced industries like dealerships, that same level of care can fall by the wayside. Here’s a rundown of recent legal updates that affect pre-employment practices — and how to stay on the right side of the law. JOB POSTINGS 1. Pay Scale Disclosure: Since Jan. 1, 2023, California employers with 15 or more employees must include pay scale information in job postings. No links or references to separate documents — this information needs to be in the posting itself. Pay scale means the salary or hourly wage range you reasonably expect to pay for the position. It doesn’t include bonuses, tips or other benefits. If the role involves commission or piece-rate wages, you need to disclose that too. And while there’s no strict rule on how broad the range can be, an overly wide range could raise eyebrows and might not be seen as meaningful. Keep it realistic based on the position, expected experience level and market conditions. 2. Driver’s License Requirements: Employers can no longer require a driver’s license in job postings unless driving is an essential job duty that can’t be done another way. This change helps non-drivers who rely on rideshare services, public transportation or biking. If driving is truly necessary for the job — like for technicians, valets or shuttle drivers — go ahead and include it. But for other roles, you’ll want to remove any mention of a driver’s license. 3. No “Clean Record” Language: Under the Fair Chance Act, you can’t include statements like “No Felons” or “Must Have a Clean Record” in job postings or applications. APPLICATION AND INTERVIEW PROCESS: WHAT NOT TO ASK 1. Salary History: It’s a no-go to ask about an applicant’s salary history — whether in person, on the application or through a recruiter. You also can’t use salary history to decide whether to offer them a job or what salary to offer. What you can ask is their salary expectations for the role. If they share their salary history on their own, you’re allowed to consider it, but you still can’t use it to justify pay differences between employees based on gender, race or ethnicity. 2. New Protected Characteristics: It’s always been illegal to discriminate based on protected characteristics, but recent updates added a few more to the list: reproductive decision-making, off-duty cannabis use and any combination of two or more protected characteristics. Watch out for innocent-sounding questions during interviews. Asking about family responsibilities or where someone was born can cross into areas like marital status or national origin. Instead of asking about childcare coverage, ask if they’ll be able to stick to the work schedule. Also, no questions about conviction history until after you’ve made a conditional job offer. 3. Cannabis Use and Drug Testing: Employers can no longer take action against an applicant who tests positive for non-psychoactive cannabis metabolites — these just show past cannabis use, not current impairment. However, if a scientifically valid test shows psychoactive THC (the stuff that indicates recent use), you can take action. Since those tests aren’t as common, many employers have removed cannabis from their drug screens entirely. If you want to keep testing for cannabis, check with your provider for updated options. CRIMINAL BACKGROUND CHECKS: THE FAIR CHANCE ACT Since 2018, employers with five or more employees can’t ask about conviction history before making a job offer. New regulations clarify what you can consider and how to handle it. When you’re reviewing an applicant’s criminal history, you must conduct an individualized assessment to decide if their conviction directly affects their ability to do the job. This assessment needs to be thoughtful and evidence-based, considering the nature and seriousness of the offense, how much time has passed since the offense or completion of the sentence and the specific duties of the job. If the applicant wants to provide evidence of rehabilitation, you need to consider it. This might include participation in work or education programs during incarceration; stable employment history since the conviction; volunteer work or community engagement; and other mitigating factors like trauma, disability or duress. If the applicant disputes the conviction history or says they’re taking steps to clear it up, you must give them time to respond before making a final decision. Be sure your written notices follow the timing and content requirements under the Fair Chance Act. Always get expert guidance before rescinding a job offer based on criminal history. Also, remember to give a written conditional job offer before conducting background checks or asking about convictions. 18 SAN DIEGO DEALER
LOS ANGELES / SAN DIEGO / SACRAMENTO / (213) 239-5622 //ScaliRasmussen.com Avoiding litigation when it’s possible. Protecting you when it isn’t. Take advantage of liability reduction provisions of the new PAGA reforms. Our Labor & Employment team is here to help! LEARN MORE
SAVE THE DATE NCDA Golf Tournament + Annual Meeting & Luncheon Wednesday, May 7, 2025 MADERAS GOLF CLUB 17750 Old Coach Rd. Poway, CA 92064 STAY TUNED FOR MORE DETAILS. 20 SAN DIEGO DEALER
ASK ALISON EPICBROKERS.COM ©2024 Edgewood Partners Insurance Center. All rights reserved. | CA License: 0B29370 EPIC Insurance Brokers & Consultants is proud of its partnership with more than 300 California dealerships and is the CNCDA’s only licensed broker for health insurance and employee benefits. As the dealers’ consultant, experience what EPIC can do for you, including: • A team producing significant results with decades of experience understanding the specific needs of dealerships • Fully insured and unique alternative funding options to best fit your needs and generate the best possible costs • Full compliance services and HR support for your team LEARN MORE ABOUT OUR SERVICES BY CONTACTING: Alison McCallum (949) 422-6431 alison.mccallum@epicbrokers.com A Case Study — Simpson Automotive Group I have been working with Alison McCallum and her dealer team since 2010. Her negotiation skills have allowed us to maintain our costs year after year. With her impressive results, we have been able to sustain our premiums and provide a high-level and affordable benefits package for our employees. — David Simpson, Owner We have been with Alison and her dealer team at EPIC for over 14 years. Their negotiations with different health plan providers have managed to keep our medical rates the same as they were five years ago with no reduction in benefits. Alison and her team were careful to lay out all options so we could minimize the impact on employees and their current medical-provider relationships. Due to Alison and her team’s results, Simpson Automotive Group has been able to maintain the same company contribution for over 10 years while keeping medical premiums consistent and affordable for our employees. In addition, Alison has negotiated premium/ financial credits from the carriers in the tens of thousands for the Simpson Automotive Group. She is constantly looking at alternative funding and options to ensure we get the most competitive pricing. Several years ago, when changing carriers, the open enrollment process was not as smooth as we were accustomed to, and Alison was as disappointed as we were. When open enrollment came around the next year, the problem was solved; a new process was implemented, and it was smooth and efficient for our employees and reduced the workload on HR. I recommend Alison and her team at EPIC without any reservations. — Richard Brown, CFO I have been working with Alison and her dealer team for several years. Alison and her team implemented in-person, one-on-one benefit counselors to enroll and educate our employees. This not only helps our employees understand their benefits and options but also helps them understand the value of the benefits Simpson Automotive Group provides. In addition, it helps HR by reducing our load, the time spent during open enrollment, and time educating new hires throughout the year. Nancy Cantos and my EPIC team keep me up to date with compliance mandates such as preparing Medicare Part D Notices and ACA annual employee notices or 5500’s. If I have more complex or non-benefit questions, I feel confident knowing I have access to EPIC’s resources such as their compliance team and ERISA attorneys. — Madison Diesel, Human Resources If you would like more information or a benefit strategy and cost review, EPIC will provide details to NCDA San Diego members at no cost. Please contact Alison McCallum at alison.mccallum@epicbrokers.com or (949) 417-9136. NCDA.COM 21
131,612 142,548 142,442 145,300 2022 Actual 2023 Actual 2024 Actual 2025 Forecast 2023 2024 % Chg. Mkt. Share Annual Annual '23 to '24 2024 TOTAL 142,548 142,442 -0.1% Car 40,608 35,838 -11.7% 25.2% Light Truck 101,940 106,604 4.6% 74.8% Domestic 50,225 46,115 -8.2% 32.4% European 20,032 19,807 -1.1% 13.9% Japanese 58,013 61,254 5.6% 43.0% Korean 14,278 15,266 6.9% 10.7% Fourth Quarter 2024 Released January, 2025 Market Summary Forecast for County New Retail Light Vehicle Registrations Domestics consist of vehicles sold by GM, Ford, Stellantis (excluding Alfa Romeo and FIAT), Tesla, Rivian, and Lucid. Data sourced from Experian Automotive. DOWN 9.6% vs. ‘21 UP 8.3% vs. ‘22 DOWN 0.1% vs. ‘23 UP 2.0% vs. ‘24 San Diego Auto Outlook Comprehensive information on the San Diego County new vehicle market FORECAST County New Vehicle Market Predicted to Improve in 2025 1. County market was flat in 2024. U.S. improved 3.1% 2. Total registrations exceeded 142,000 last year, up from the recent low of 131,612 in 2022. 3. Market was up 1.7% in 4Q ‘24 vs. year earlier, stronger than the 5.2% decline in 3Q. 4. San Diego County Japanese brand market share was higher than U.S. (see page 3). 5. Hybrid vehicles powered the market in ‘24. New hybrid vehicle registrations increased 26% and market share exceeded 16%. 6. Tesla Model Y, Toyota RAV4, and Honda CR-V were top three sellers in San Diego County market. Toyota Tundra had a large percentage increase from 2023 to 2024 (see page 5). Below is a list of six primary questions and answers regarding the San Diego County new retail light vehicle market. How did the County market perform in 2024? County new light vehicle registrations slipped 0.1% from 2023 to 2024, off from the 8.3% improvement from 2022 to 2023. What is the outlook for 2025? Registrations for all of this year are predicted to exceed 145,000 units and increase 2.0% from 2024 (see graph below). What are the key factors impacting new vehicle sales this year? Potential changes in government policies during 2025 (i.e, possible tax cuts, increase in tariffs, and reductions in labor force due to deportations) introduce elevated uncertainty into the outlook for new vehicle sales. Most economists agree that collectively, these policy initiatives would accelerate inflation, potentially reversing recent improvements in affordability. Despite these potential negatives, we think a strong labor market and pent- up demand accumulated during five years of below average sales should be sufficient to push the market higher in 2025. A big increase does not seem likely, however. Which brands posted gains during all of 2024 and which finished the year strong? County new retail registrations for Lexus, GMC, Toyota, Rivian, Land Rover, and Kia increased by more than 7% last year. Rivian, Mercedes, Land Rover, Toyota, and Jeep gained some momentum as the year ended, with 4Q ‘24 registrations increasing by more than 14% from 3Q. Based on a comparison to U.S. market share, which brands are strong performers in the county market? The analysis on page 5 compares actual registrations in the county for each of the top 30 selling brands to a calculated target. The target equals county registrations required for the brand to attain the same county market share as in the Nation. Actual registrations significantly exceeded target for Tesla, Toyota, Honda, BMW, and Mercedes. What are recent trends in the battery electric vehicle market? BEV registrations were up 3% last year, higher than the slight 0.1% drop in the overall market. Market share gains leveled off, however. BEV share increased by 5.7 share points from 2022 to 2023, but improved by just 0.7 points last year. 4Q ‘24 BEV share was 22.0%, down from 24.2% in 3Q. Six Key facts for County New Vehicle Market The graph above shows annual new retail light vehicle registrations from 2022 through 2024, and Auto Outlook’s projection for 2025. Historical data sourced from Experian Automotive.
Page 2 San Diego Auto Outlook At Auto Outlook, we strive to provide sound and accurate analyses and forecasts based upon the data available to us. However, our forecasts are derived from thirdparty data and contain a number of assumptions made by Auto Outlook and its management, including, without limitation, the accuracy of the data compiled. As a result, Auto Outlook can make no representation or warranty with respect to the accuracy or completeness of the data we provide or the forecasts or projections that we make based upon such data. Auto Outlook expressly disclaims any such warranties, and undue reliance should not be placed on any such data, forecasts, projections, or predictions. Auto Outlook undertakes no obligation to update or revise any predictions or forecasts, whether as a result of any new data, the occurrence of future events, or otherwise. KEY TRENDS IN SAN DIEGO COUNTY NEW VEHICLE MARKET San Diego Auto Outlook Published by: Auto Outlook, Inc. PO Box 390, Exton, PA 19341 Phone: 610-640-1233 EMail: jfoltz@autooutlook.com Editor: Jeffrey A. Foltz Information quoted must be attributed to San Diego Auto Outlook, published by Auto Outlook, Inc. on behalf of the New Car Dealers Association San Diego County and must also include the statement: “Data sourced from Experian Automotive.” COUNTY MARKET VS. U.S. San Diego County DOWN 0.1% % Change In New Retail Market 2024 vs. 2023 New retail light vehicle registrations in the county were essentially unchanged last year. State market declined 0.8%, while U.S. was up 3.1%. Data sourced from Experian Automotive. Data sourced from Experian Automotive. SAAR estimates: Auto Outlook. QUARTERLY RESULTS San Diego County Quarterly Registrations Seasonally Adjusted Annual Rate, Converted to Equivalent U.S. New Vehicle Market SAAR (millions of units) The graph on the left provides an easily recognizable way to gauge the strength of the county market. It shows quarterly registrations based on a seasonally adjusted annual rate. These figures are then indexed to SAAR sales figures for the U.S. new vehicle market. So just like in the national market, when the quarterly SAAR is above 17 million units, the county market is strong, 15 million is about average, and below 13 million is weak. Equivalent SAAR levels in the county increased from 14.3 million in the Third Quarter of 2024 to 15.2 million in the Fourth Quarter. % Change in quarterly registrations vs. year earlier (4Q ‘24 vs. 4Q ‘23) % Change in registrations vs. previous quarter (4Q ‘24 vs. 3Q ‘24) California DOWN 0.8% U.S. UP 3.1% 14.2 15.0 14.8 15.0 15.0 14.8 14.3 15.2 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Millions UP 1.7% UP 2.4%
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy MTg3NDExNQ==