ISSUE 2 2024‑2025 A PUBLICATION OF THE GEORGIA AUTOMOBILE DEALERS ASSOCIATION IN THIS ISSUE Georgia’s Tort Reform A Lifeline for Small Businesses
Have You Outgrown Your DMS Tech? Welcome To Your New Cloud - Core DMS 866.928.3210 1515 South Federal Highway, Suite 406 Boca Raton, FL 33432 USA Leverage a DMS With a Better VUE DominionDMS.com
2024-2025 GADA Board of Directors Executive Committee Bo Scott Regal Nissan, Roswell Chair Marsh Butler Butler Automotive Group, Macon Chair-Elect David Jones Gerald Jones Auto Group, Augusta Secretary-Treasurer Charles Prater Prater Ford, Calhoun Immediate Past Chair Jason Denson Ford of Dalton, Dalton North Georgia Area Vice Chair Mike Domenicone Classic Cadillac & Subaru, Atlanta West Georgia Area Vice Chair Tim Redding Jr. Dublin Ford Lincoln, Dublin East Central Area Vice Chair Dana McCracken Brannen Motor Company, Unadilla Southwest Area Vice Chair Chad Nesmith Nesmith Chevrolet, Jesup Southeast Area Vice Chair Matt Laughridge Terry Reid Hyundai Cartersville NADA Director ISSUE 2, 2024‑2025 TABLE OF CONTENTS THE ©2025 The Georgia Automobile Dealers Association (GADA) | The newsLINK Group LLC. All rights reserved. The Generator is published two times per year by The newsLINK Group LLC for GADA 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 GADA, 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. The Generator is a collective work, and as such, some articles are submitted by authors who are independent of GADA. 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. GADA Staff General Administration Lea Kirschner, President Bill Morie, President Emeritus Ben Jordan, General Counsel/Governmental Relations Hau Le, Controller Surangi Moonesinghe, Assistant Controller Maria Yolova, Accounting/Membership Esther Castro, Accounting — Receivables/Payables Travis Lockhart, Governmental Relations GADA Workers Compensation Group Self Insurance Fund Lisa Pritchett, Managing Director Melissa Gutierrez, Claims Adjuster Christina Zais, Claims Adjuster Jeremy Lane, Claims Adjuster Nicole Christian, Claims Assistant Andy Willis, Director of Loss Prevention Aaron Moon, Loss Prevention Specialist Leroy Smith, Loss Prevention Specialist GADA Insurance Services Shawn Presnell, Managing Director Candace McDole, Benefits Specialist Gabriella Filipov, Enrollment Specialist Felix Jackson, P&C Account Exec. (N. GA) David Crew, P&C Account Exec. (S. GA) Sherry McGaha, Insurance Services Admin Assistant Title Services/TOPS & Business Forms Roseann Nichols, Senior Director Title Services Beverly Bird, Office Admin/TOPs & Forms GEORGIA AUTOMOBILE DEALERS ASSOCIATION 2060 Powers Ferry Rd. SE Atlanta, GA 30339 (770) 432-1658 www.gada.com PRESIDENT’S MESSAGE 4 On My Mind By Lea Kirschner GADA President and CEO HEADLIGHTS ON THE LAW 6 Senate Bill 81: A Win for Georgia’s Franchise Dealers By Ben Jordan, GADA General Counsel & Director of Governmental Relations INSURANCE INSIGHTS 8 Employee Benefits Navigating the System and Making the Best Decisions By Shawn Presnell, Managing Director of Insurance Services, GADA 10 A Safety Mindset With William Strickland, GADA’s WCF Chair 12 Washington Is Recalculating — Are You Still on Course? By Matthew Simpson, Esq. and Grace Mallory, Esq., Fisher Phillips 14 Bridging the Gap Successfully Managing a Multi-Generational Workforce 18 Are “Main Street” Businesses in Local Economies Dead? The Role of Franchised Auto Dealerships 22 Georgia’s Tort Reform A Lifeline for Small Businesses 24 Turning Up the Heat Early Start on Heat Illness and Prevention Requirements By Hao Nguyen, Esq., Senior Product and Regulatory Counsel, ComplyAuto 28 Payment Strategies for a Changing Auto Retail World By Truist Dealer Services 32 The Vital Role of Accurate Dealership Valuations By DSMA 35 Georgia Auto Outlook First Quarter 2025 3 THE GENERATOR
LEA KIRSCHNER GADA PRESIDENT AND CEO PRESIDENT’S MESSAGE In the auto industry, the first half of the year has been full of information about tariffs, EVs and CARB waivers. Uncertainty seems to be the norm. Yet, one thing has remained the same — the perseverance and strength of automotive retail industry. Dealers always demonstrate resilience to a rapidly changing world. For our part, the GADA staff have been diligently working to provide our members with the services they expect and the information they need. I cannot stress enough how important it is for dealers to stay connected to GADA and to participate as much as possible. We exist to keep the industry and your dealerships thriving. As I write this, we are preparing for our Annual Convention at The Cloister in Sea Island, Georgia. It is a wonderful event that gives dealers the opportunity to network with allied business representatives and with each other. I can happily report that attendance this year is beyond expectations. If you can’t get there this year, give the Convention a try next year. Our 2026 Convention will be held on June 25-28 at the Ponte Vedra Inn & Resort in beautiful Ponte Vedra, Florida. Membership invoices for 2025-26 fiscal year (July 1-June 30) have been mailed. As a reminder, all participants in the GADA Group Self-Insurance Workers’ Compensation Fund must maintain membership in GADA. Also, be sure to complete and return the Dealership Contact Form included with the invoices so that you can be on top of industry news and alerts! When paying this year’s Dues, we humbly ask you to contribute to GADA’s Political Action Committee, CARD, and Dealer Advocacy Fund. Unfortunately, even though 100% of Georgia franchise dealers benefit from the work of GADA, less than 50% of GADA’s members contribute to CARD and DAF. If you have contributed to CARD and DAF in the past, we thank you! If you haven’t contributed to CARD or DAF, it’s time to join your fellow dealers in fighting for this industry. The return on investment can be seen every day when you proudly open the doors of your business. Dealers always demonstrate resilience to a rapidly changing world. On My Mind THE GENERATOR 4
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?® Jim Yager, jim.yager@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.
HEADLIGHTS ON THE LAW BEN JORDAN GADA GENERAL COUNSEL & DIRECTOR OF GOVERNMENTAL RELATIONS Once again, your voice at the Georgia Capitol was heard, and this legislative victory is the result. Senate Bill 81: A Win for Georgia’s Franchise Dealers The 2025 legislative session came to an end late on the evening of Friday, April 4. This year’s session was notable for the passage of comprehensive tort reform, the first comprehensive reform in 20 years. This session was also notable for Georgia’s franchise dealers because of the passage of Senate Bill 81, which updates Georgia’s Franchise Practice Act, the law that regulates the relationship between a local franchise dealer and motor vehicle manufacturer. This is the first update to Georgia’s franchise law since 2019, and it contains several provisions beneficial to GADA members and to the dealer franchise system in Georgia. I. LEGISLATIVE FINDINGS The Legislative Findings portion of a statute states the reasons why the General Assembly enacts a piece of legislation. Sente Bill 81 amends current law by: • Adding “recall service” to the list of services of substantial concern to the public that franchise dealers perform for consumers. • Emphasizing the benefits of competition within the franchise system for consumers, including competitive pricing, service and convenient repair facilities. • Highlighting additional benefits of local dealerships, such as introducing new automotive technology, supporting and maintaining vehicles after sale, protecting against monopolies and providing stable employment. When the constitutionality of laws is challenged in court, judges often look to the legislative findings portion of statutes to help decide whether a statute is valid. It is hopeful these changes will help fortify Georgia’s franchise law. THE GENERATOR 6
II. DATA PROTECTION Dealerships handle significant amounts of sensitive customer data. This legislation would address concerns about data access and security between dealers, Dealer Management Systems (DMS) and data vendors. Specifically, Senate Bill 81: • Prevents unauthorized access, sharing or selling of dealership data from a dealer’s DMS. • Prohibits third parties from limiting a dealership’s ability to protect, store or use its data. • Allows data integrators to access data on a dealership’s DMS for specific services, provided they comply with industry standards for secure data integration. • Permits dealers to continuously monitor or audit data accessed from or written to their data systems without interference. • Allows dealers to back up data and implement redundant systems for business continuity in case of security breaches. These changes are designed to promote competition in data management and integration and help dealers secure and monitor third-party access to ensure customer data protection. III. OVER-THE-AIR (OTA) UPDATES The increasing use of OTA updates has raised questions about the role of dealerships in providing repair services. Senate Bill 81 would bring some clarity to this topic by: • Requiring manufacturers to compensate franchise dealers when dealers assist customers with OTA updates covered under factory warranty. • Requiring manufacturers to disclose to dealers each accessory or function of a new vehicle that may be initiated, updated, changed or maintained through OTA updates, along with the associated costs to the consumer. This information can be provided digitally or on the manufacturer’s website. These changes aim to ensure fair compensation for dealers’ services and transparency for consumers regarding OTA updates and their costs. IV. ALLOCATION Senate Bill 81 aims to bring more fairness and transparency to the allocation process in Georgia. Specifically, it would require a manufacturer’s allocation process to be “fair, equitable and non-discriminatory” to its line-make dealers in Georgia. It would also require manufacturers to give dealers information concerning how allocations decisions were made when requested by dealers. V. SHOWROOMS/GALLERIES In Georgia, new car dealers cannot engage in “any activity as a new motor vehicle” except at their dealership or a temporary site for which it receives a permit from the Department of Revenue. Despite that, some companies have opened “showrooms” or “galleries” at which vehicles are displayed and demonstrated without obtaining a dealer’s license, raising questions about whether they are “engaging in the business of a new car dealer” without the required license. As this would be a potential loophole for manufacturers who want to sell “direct,” like Rivian, Lucid or Scout Motors, Senate Bill 81 addresses this problem by defining specific activities that constitute “engaging in the business of a new car dealer” that would necessitate a dealer’s license. Specifically, the following activities would require a dealer’s license: selling, leasing, offering to sell or lease, negotiating terms, accepting deposits, processing reservations, or accepting or negotiating trade-ins. Displaying vehicles alone, or disclosing the MSRP, would not constitute such activity. Thus, Senate Bill 81 clarifies that those without a dealer’s license cannot engage in any sales activity at a showroom or gallery in Georgia. CONCLUSION Senate Bill 81 was GADA’s top priority this legislative session, and we are incredibly grateful to members in the Georgia House and Senate for their strong, bipartisan support. We are particularly thankful to Sen. Brass (R-Newnan), lead sponsor of the bill, and to Rep. Alan Powell (R-Hartwell), who carried the bill in the House. We also appreciate all the GADA members who contacted their legislators and encouraged their support. Once again, your voice at the Georgia Capitol was heard, and this legislative victory is the result. 7 THE GENERATOR
Employee Benefits Navigating the System and Making the Best Decisions INSURANCE INSIGHTS SHAWN PRESNELL MANAGING DIRECTOR OF INSURANCE SERVICES, GADA By educating your employees in certain aspects of health care, they can become better consumers and advocates. CONTROLLING PRESCRIPTION DRUG (RX) COSTS What are brand-name medications versus generic medications? Generic medications can cost up to 85% less than their brand-name equivalent. Generic drugs are heavily regulated and go through a rigorous review process before they’re approved. The FDA tests them to make sure they offer the same benefits as brand-name medications. In studies, it has been shown that 87% of the time, the generic medication was equally as effective as its brand-name equivalent. OUTPATIENT IMAGING OR TESTING COSTS The cost of outpatient imaging or testing can vary significantly depending on where the test is completed. The most expensive testing is typically in an outpatient setting at a hospital. This is an area where most people decide to have their imaging or testing done where their doctor writes the order. If the imaging is done at a hospital, the cost can be anywhere from two to three times the cost of what it would cost at a stand-alone imaging center! It is critical that employees make sure they do some investigation up front prior to having imaging or testing done. Most stand-alone imaging centers can either send your results to your doctor or provide them directly to you. CONSIDER OFFERING AN HSA (HEALTH SAVINGS ACCOUNT) AS YOUR LOW-COST PLAN HSA plans or consumer-driven health plans are a great way to engage your employees in understanding the costs of health care and driving their consumer behavior to save money on health care expenses. Employees who participate in HSA plans are more likely to be cost-effective when spending health care dollars. This can keep your overall claims costs down and have an impact on better rate stability. LEVEL-FUNDED VS. SELF-INSURED If your medical loss ratio is in the 80s or below, a level-funded medical program may provide additional savings in the form of a potential surplus. Employers with more than 100 employees enrolled in your medical program may find a self-insured program to be beneficial, especially if your loss ratios are below 90%. IMPORTANT UNDERWRITING FACTORS IN GROUP HEALTH INSURANCE Participation is a very important factor in underwriting health insurance. No matter the size of an employer, participation in your health plan is extremely important. It is important to keep your participation in your group health plan as high as possible and not allow it to go under 50% of total employees or 75% of eligible employees, not including those with a valid waiver. If your participation drops below these levels, then most insurance companies will add a participation load to your rates. Some insurers may not provide a health quote for employers under these participation levels. It is not to your advantage to switch health insurance companies too often. One of the questions underwriters will ask is how many insurance companies you have been with for the past five years. Two is OK, but more than two may limit who will provide a quote or how competitive a quote you receive. Employer Contribution plays a vital role in your rates. Our analysis of benefit clients shows that those who contribute more toward “employee only” for health insurance have a higher participation, which helps keep overall rates down. THE GENERATOR 8
Telehealth benefits and overall benefit education can play a major role in keeping claims costs down and impacting lower medical loss rates! Make sure your broker takes a proactive role in your medical renewal. The insurance company may not be aware that a high claimant is no longer part of your group. These things can impact your ability to negotiate your renewal. DID YOU KNOW? Did you know that GADA has an in-house insurance agency that specializes in employee benefits? We would be happy to discuss your employee benefit challenges to see if we can provide better solutions. Our goal is to provide the most competitive costs, top customer service and keep our benefit clients informed. We have clients with fully insured, level-funded and self-insured medical insurance programs. Please get in touch with us if we can help answer any specific insurance questions. You can contact Shawn Presnell, managing director of insurance services, by calling (770) 432-1658, ext. 240, or emailing shawn_presnell@gada.com. You can contact Candace McDole, benefits specialist, by calling (770) 432-1658, ext. 219, or emailing candace_mcdole@gada.com. 9 THE GENERATOR
A Safety MINDSET With William Strickland, GADA’s WCF Chair At the time the GADA’s Workers’ Compensation Fund (WCF) was created, the U.S. economy was marred by high unemployment and a severe economic downturn that was triggered by high inflation and rising interest rates. Then GADA President, William “Bill” Morie, with the help of GADA board members, was not deterred as they went from bank to bank to get the monies for the WCF covered by the then $100k FDIC rule. That was in 1982. Since then, there have been a number of GADA members overseeing the WCF and making sure it remains stable while it grows. In 2015, William Strickland became the chair and serves in that position to this day. “I am so thankful for those who came before me. The fund is successful today because of the sound decisions that were made in the past,” stated William. “I am standing on the shoulders of giants; they did a wonderful job of setting up and managing the fund.” Today, the WCF provides Georgia dealers with stable, low rates, prompt claims management, payroll coordination and more. In fact, during his time as chair, the board has been able to add a Safety Group to the program. Andy Willis, director of loss prevention and his team spearhead this effort, providing safety assessments for member dealerships at no charge. The assessments provide dealers with suggestions and changes they can implement to help make the store a safer place to be. Protecting employees with smart policies is the goal. “Keeping our employees safe is so important, especially when it comes to highly skilled workers like our technicians. We should be doing everything we can to minimize injuries,” said William. “If they do get hurt, we can’t easily replace them. The last thing you want them to do is to get hurt.” Looking forward, William hopes to add additional benefits to the WCF, but keeping it on a smooth, steady course is THE GENERATOR 10
his main goal. With $103 million for members to access, the WCF is as healthy as it has ever been. Even better is that so many GADA members are prioritizing safety, which leads to fewer accidents and, ultimately, fewer claims. The year-end dividends are proof that being safety-minded works. “On average, I get about 50% of what I’ve paid in dividends back to our store,” said William. “It’s a huge money saver.” “I’m very thankful for the leadership of our association. The WCF wouldn’t be doing as well as it is without the excellent job they do,” said William. MORE ABOUT WILLIAM As a first-generation dealer, William has had to learn about the auto business from the ground up. During the economic downturn of 1991, he had the opportunity to purchase a struggling Chevrolet dealership in McDonough, Georgia. The dealership had many problems and was losing around $46,000 a month. He applied his sales background, hard work ethic and small-town values to begin the process of fixing the problems. The first year was filled with many long days and some sleepless nights, but by 1992, William had right sided the company. “We didn’t make a whole lot of money that year, but we didn’t lose any money, and that was big news,” said William. “Had I known the stakes were as high as they were, I probably wouldn’t have made the journey,” said William. Today, Bellamy Strickland Chevrolet GMC is a staple of the community and stronger than ever. In addition to running a successful dealership and serving on the GADA board, it is important to William to give back to his community. The dealership is proud to be a sponsor of local youth sports, the Henry County and Forsyth-Monroe Chambers of Commerce, and A Friends House in Henry County, which provides a safe and loving environment for children in crisis in McDonough. Because of his many achievements, William was the 2020 Georgia TIME Dealer of the Year Nominee. 11 THE GENERATOR
Washington Is Recalculating — Are You Still on Course? BY MATTHEW SIMPSON, ESQ. AND GRACE MALLORY, ESQ. FISHER PHILLIPS THE GENERATOR 12
As your dealership adapts to the latest automotive trends, be prepared — employment law is also getting a full system upgrade. Recent legal detours and regulatory U-turns are rewriting how employment rules are created, enforced and challenged. So, before you change lanes or slam the brakes, here’s what’s happening in D.C., and what it means for Georgia dealerships. Courts Take the Wheel: In Loper Bright v. Raimondo, the U.S. Supreme Court scrapped the Chevron doctrine, which had required courts to defer to federal agency interpretations of ambiguous laws. Now, courts decide for themselves whether agency rules cross the legal line. This shift is already impacting agency actions, including the DOL’s new overtime rule and the FTC’s noncompete ban, both of which have been blocked. EEOC guidance on pregnancy and harassment may be next in line. New Drivers, New Directions: New agency leadership is shifting focus. Many Biden-era initiatives are being reversed or abandoned. For dealerships, this means less aggressive enforcement and more emphasis on compliance support. The DOL is expected to withdraw its complex independent contractor rule and the FTC’s proposed noncompete ban may fade. OSHA, too, is likely to hit pause on rules related to emergency response, heat injury and injury reporting, all of which could have affected service operations. The NLRB Slows to a Crawl: With just two of five seats filled, the National Labor Relations Board can’t fully function. That stalls several union-friendly policies, including memos on joint employment, non-disparagement clauses and stay-or-pay provisions. Dealerships may find more room to enforce employment standards without stepping into legal gray areas. Pregnancy Rules Still Have the Right of Way: The Pregnant Workers Fairness Act remains in effect and is broadly applied. Employers must accommodate pregnancy-related limitations — including schedule changes, breaks, remote work or light duty — often without requiring documentation. The law applies to all roles, from showroom to service bay, and even allows temporary suspension of essential functions. I-9 Compliance in the Spotlight: The Department of Homeland Security has ramped up I-9 audits. Dealerships should perform internal audits now to stay ahead. Meanwhile, cutbacks to visa programs like the H-1B may affect operations that rely on specialized or multilingual staff. Stay in Your Lane — But Keep Moving: While federal priorities are shifting, most legal obligations haven’t changed. State laws still apply, and litigation risks remain. Whether your dealership needs a compliance tune-up or a fresh route forward, your Fisher Phillips team is here to help. 13 THE GENERATOR
Bridging the Gap Successfully Managing a Multi-Generational Workforce For the first time in history, we have five generations in the workplace, which also means dealerships are juggling the interests, needs and communication styles of members whose ages span over a half-century. Each of these groups has been influenced by the socio-cultural events that took place during the formative years of their lifetimes, including how each generation views its financial needs, goals and communication preferences. A generation is defined as “a group of people born around the same time and raised around the same place. People in this birth cohort exhibit similar characteristics, preferences and values over their lifetimes.” This generational melting pot presents an interesting puzzle for both owners and management teams because a one-size-fits-all approach is no longer an effective way to engage all employees. In order for employees to be fully engaged and participate more and more, the feedback is to communicate with them how they want to be communicated with. Generations have differences in the values, beliefs and opinions of different groups of people. While some believe strongly in the differences, others believe they are a myth. Those believing in the differences assert they are important to recognize and accommodate, especially in settings with multiple generations in today’s workforce. THE GENERATOR 14
• Traditionalists value workplaces that are conservative and hierarchical and have a clear chain of command and top-down management. • Baby boomers value workplaces that have flat hierarchies, democratic cultures, humane values, equal opportunities and warm and friendly environments. • Generation X value workplaces that are positive, fun, efficient, fast-paced, flexible, informal and have access to leadership and information. • Millennials value workplaces that are collaborative, achievement-oriented, highly creative, positive, diverse, fun, flexible and continuously providing feedback. • Generation Z value workplaces that offer security, are competitive and offer independence where they can multi-task and communicate face-to-face in an entrepreneurial environment. They are digital natives who want to be catered to. Leaders need to be adaptable and willing to negotiate compromises to effectively serve all generations. While it may not always be possible to find a middle ground, making an effort can create significant positive change. It’s important to work on bridging the generation gap without exacerbating it. Achieving this requires thoughtful conversations conducted in good faith, as well as effective negotiation. Let’s examine where intergenerational conflict may arise and the potential consequences if leaders fail to establish an inclusive path forward. COMMUNICATION Setting expectations upfront can help avoid any confusion while reaching business goals. • Set clear guidelines and expectations for communication channels and response times. • Offer training on effective communication strategies for leaders, focusing on bridging generational gaps. 15 THE GENERATOR
• Promote collaboration and communication across generations through group projects that develop intergenerational skills. • Provide cheat sheets during onboarding that include team communication preferences. Add personal details (pets, hobbies, etc.) to facilitate quicker interpersonal connections. • Train employees on scheduling emails for later to respect communication preferences and not pressure them to respond outside of regular business hours, even if their colleagues are working during those times. THE WORK/LIFE BALANCE Different generations have unique expectations regarding work hours, flexibility and time off. However, preventing burnout is crucial for all age groups. Research indicates that an imbalance between work and personal life greatly contributes to burnout, leading to higher turnover rates and lower job satisfaction. To enhance work/life balance across generations while maintaining high productivity and morale, consider the following strategies: • Provide flexible work arrangements, including options for hybrid, remote or adjustable schedules. • Encourage employees to prioritize self-care and well-being by implementing wellness initiatives. • Establish policies and guidelines that encourage work/life balance and clearly define expectations for all employees. • Offer resources and support for effectively managing stress and achieving a healthy work-life balance. EMBRACING TECHNOLOGY Different rates of technology adoption can hinder team collaboration and engagement. Training and effective communication are essential to bridge the gap between these varying adoption rates. Consider the following steps to help your employees embrace technology: • Implement training programs to enhance digital skills across all generations, including opportunities for cross-skilling. • Foster a culture of questioning where individuals from any generation feel comfortable raising their hand and saying something like, “I’m having difficulty understanding the new process. I know I’ve asked before, but could someone please help me?” • Develop a technology adoption roadmap that includes ongoing support and clearly outlines training expectations. • Engage employees in the decision-making process and address their concerns about changes in technology. BENEFIT OFFERINGS Each generation requires different benefits, however, it’s crucial not to make assumptions based solely on someone’s birth year. Instead, employers should ask employees about their specific needs and then offer them a range of options. This can make a huge difference in employee retention. Additionally, providing a wide variety of choices and benefits can distinguish employers in the competitive job market, helping them resonate with and attract talent from all generations. Failing to provide complete information about benefits or not communicating them clearly can hinder your ability to attract new talent. Job postings that explicitly mention various benefits, such as workplace wellness programs and flexible work arrangements, tend to receive significantly higher engagement rates from job seekers compared to postings that do not include these details. To enhance benefit participation, consider the following: • Regularly assess and revise benefit offerings to reflect changing demographics and incorporate employee feedback. • Clearly communicate the value and purpose of each benefit to ensure transparency and understanding. • Consider cafeteria-style benefit plans where employees can select the benefits that suit them best. • Ask the right questions to avoid overpaying for unnecessary benefits. For example, while some employees may express a desire for fully remote work, you might find that, upon further inquiry, they are actually comfortable coming into the office two days a week. CONCLUSION To maintain an up-to-date understanding of your workforce, establish feedback channels throughout the employee experience. Consider conducting stay interviews to gain insight into why employees choose to remain with the company and why others leave, rather than waiting for exit interviews after someone has departed. By approaching it this way, you can gather valuable insights that may influence your workplace strategy, lead to changes in policies and benefits, and help shape your plans for attracting and retaining talent. Remember, work cultures are dynamic and must evolve alongside your workforce. The suggestions in this article are not one-time fixes; instead, they offer ways to collaborate with your employees to find timely solutions tailored to your team’s needs. As you adapt and are transparent about your actions, the strategies you implement can go a long way in helping your business’s growth and success. After all, happy employees lead to happy customers. And isn’t that what selling cars is all about? THE GENERATOR 16
Take your profit potential to new heights with Assurant Dealer Services. Get a high-impact performance plan, hands-on training, and retail-proven expertise. Assurant’s in-store development and one-on-one training helped us build a culture of success with better production and more profit.” ― Dale Critz Jr. President and CEO, Critz Auto Group “ ADS21675-0525 © 2025 Assurant, Inc. Personalized F&I support. Unrivaled performance. Move your F&I numbers | Generate profit and wealth | Drive customer retention assurant.com/dealer-services Start your free profit analysis.
Are “Main Street” Businesses in Local Economies Dead? The Role of Franchised Auto Dealerships THE GENERATOR 18
The U.S. Chamber of Commerce reports that small businesses account for 99.9% of all U.S. businesses and employ 46% of the private sector workforce. According to the SBA’s “small business” definition, the majority of local franchised auto dealerships are part of the 33.2 million small businesses that form the foundation of our nation’s economy. At the heart of many communities are “main street” businesses. They are often locally owned brick-and-mortar stores that offer essential goods and services. These “main street” businesses serve as a hub for social interaction while fostering a sense of place and hometown pride. Franchised auto dealerships are the last true “main street” businesses. With deep community ties, many of these businesses are family-owned and have been passed down from generation to generation. When it comes to local franchised auto dealerships, an estimated 85% of the 16,000+ are family-owned and some even have a fourth generation getting ready to take over the reins. These dealerships are known for their accessibility, a place where customers can often interact personally with the owner, thus fostering strong community relationships. Additionally, dealers are inherently ingrained and deeply invested in their communities, giving back as much, if not more, than they bring in. Across the board, dealers directly invest in their neighborhoods through car donations, Little League sponsorships, volunteer hours and so much more. And this is just the start of what dealerships bring to the local table. Employees of dealerships are often involved in chambers of commerce and other local business associations, playing a direct role in keeping the local business community vibrant and healthy. This level of community commitment is not easily replicated. It’s not hard to see how franchised dealerships have become an integral piece of the local economy and we haven’t even mentioned economic activity. According to NADA, in 2023, Georgia dealerships employed 77,633 people, that’s 72 employees per dealership on average with a whopping $3 billion in payroll. What’s more, those employed in the automotive industry don’t have just another low-paying job. Whether it be in retail or as a service technician, the automotive industry offers one of the few work opportunities where those who 19 THE GENERATOR
don’t see a four-year college degree as an option can find a path to the middle class and higher. All that is needed is a healthy dose of work ethic, a willingness to learn and on-the-job experience. The benefits of these jobs to the community are immediate because employees and customers are the community. The profits feed right back into the local area. Really, the only people the franchise model isn’t good for are Wall Street billionaires. Yet another staggering number is the $36 billion in total sales that Georgia’s franchised auto dealers made in 2023. That equates to $930,224,691 in state and federal income taxes and $2.3 billion in state sales tax. Those are impressive numbers, and though there are certainly outliers, most franchised dealerships, fit into the “main street” business mold. They are not what one would classify as a mom-and-pop shop nor are they considered a billionaire class. Simply put, they are affluent “main street” community businesses. While not immune to consolidation by larger corporations, for the most part, dealerships remain a fundamentally local small business that lives and dies by their community, selling person to person to their neighbors. The recent efforts of new tech manufacturers to disrupt the franchised dealership system — which has thrived for over 100 years — have not succeeded. What leaders from new tech companies fail to realize is how expensive it is to get a storefront, customize and brand it, fill it with inventory, hire staff and train them on the intricacies of the car make and model so the customer relationship can be built, nurtured and live well beyond the initial purchase of the vehicle. This carefully developed relationship happens over time and includes regular oil changes, service and repair, warranty work, and if all goes to plan, selling the customer their next new car when the time is right. Over the last decade, we’ve heard a lot of talking points about the usefulness of physical dealership stores. The talking heads spoke from one extreme to another, especially with Tesla and their internet model of selling cars. In statehouses across the nation, bills were filed, hearings were held, and legislation was passed in an effort to protect the franchised system. As the dust settles, the evidence is clear: The integration of a physical store with an online shopping option is the optimal retail model. Not because we said so, it’s because car buyers prefer a combination of physical and digital channels, and their money does the talking. The “bricks and clicks” model of selling cars is here to stay. While younger generations may prefer a digitally enhanced car-buying experience, they still value physical touchpoints, choosing to gather information and make decisions based on a combination of online and physical channels. At the same time, older generations prefer an in-store car-buying experience but are increasingly engaging in online shopping options. The benefits of the franchised dealer model are the wide distribution network, personalized customer service, the ability to manage inventory and financing while providing a physical space for test drives and the final purchase experience. It also supports the car sales process and provides a deeply human interaction, one that can be facilitated, but not replaced, by technology, making the franchised auto dealership the epitome of “main street.” THE GENERATOR 20
Jeffrey Wolters District Manager 9000 Cameron Parkway Oklahoma City, OK 73114 800-654-8489, Ext. 2602 americanfidelity.com We know the automotive drill: High stakes. High pressure. High sales goals. That’s why you need a partner who can keep the pace, reduce the headaches, and simplify [employee benefits and administration]. With our year-round benefits enrollment, we’re there on your schedule for your people. So you can focus on your team’s high performance. For insider knowledge, consider American Fidelity for a different opinion. Help is here. • Strategic Voluntary Benefits • Cost-Management Benefits Solutions • Employee Benefits Education Automotive professionals deserve a specialist. SB-30819-0117 American Fidelity Assurance Company EMPLOYER BENEFIT SOLUTIONS FOR AUTOMOTIVE
Georgia’s Tort Reform A Lifeline for Small Businesses On April 22, Georgia Gov. Brian Kemp signed historic legislation, delivering meaningful tort reform and what some hope will be a lifeline for small businesses throughout the state. For too long, small businesses in Georgia have been struggling to keep their doors open under the weight of frivolous lawsuits. The issue threatened the livelihoods of many main street businesses by driving up insurance premiums and diverting vital resources away from growth and innovation. The issue came to a head in November 2024, when the Georgia Office of the Commissioner of Insurance and Fire Safety issued a report summarizing its findings concerning the state of the casualty insurance market and included proposed reforms. According to their report, the five-year average claim count increased by over 24% between 2014-18 and 2019-23. The report showed a steady increase in policy limits claims and losses that exceeded $1 million. The rising frequency of claims and severity was only further amplified by the legal landscape in Georgia, which was ranked as the fourth worst jurisdiction in the country according to the American Tort Reform Foundation (ATRF). A statement from the ATRF expounded on the issue, saying, “Georgia’s civil justice system is plagued by skyrocketing nuclear verdicts, inflated awards for medical costs, expansive premises liability and laws that set up defendants to fail, creating endless liability.” They went on to say that the “lawsuit abuse and excessive tort costs wipe out billions of dollars in economic activity annually.” To that point, a study conducted by the Perryman Group noted that Georgia citizens each pay a “tort tax” of $1,372.94 in higher product prices, reduced economic activity and the 137,658 jobs that are lost each year because of abusive tort litigation. On Jan. 30, 2025, Gov. Kemp, along with Lt. Gov. Burt Jones, Speaker Jon Burns, Commissioner John King and leaders from industries across the state unveiled a tort reform package. The package aimed to level the playing field in courtrooms, ban hostile foreign powers from taking advantage of consumers and legal proceedings, stabilize insurance costs for businesses and consumers, and increase transparency and fairness. SB 68, referred to as the “Act,” was sponsored by 25 senators and directly addressed the rising tide of lawsuit abuse that has negatively impacted Georgia’s small business owners. Efforts THE GENERATOR 22
were met with opposition from trial lawyers and consumer advocates who were pitted against businesses and insurance advocacy groups. Proponents argued that this new law offers critical protections that will make Georgia a more affordable and competitive place to do business. The Georgia Chamber of Commerce commented, “SB 68 will curb lawsuit abuse while protecting families, small businesses, the medical community and Georgia’s economic competitiveness. For the past 20 years, securing tort reform has been the top legislative priority of the Georgia Chamber. The House passage of SB 68 takes us to the brink of finally delivering meaningful tort reform for Georgia.” At the signing ceremony, Gov. Kemp stated, “SB 68 and 69 put job creators and hardworking Georgians first by leveling the playing field in our courtrooms and ensuring Georgia remains the best place to live, work and raise a family. Today, I’m proud to sign these bills into law!” The new legislation limits owners’ liability for injuries that occur on their property and restricts damages for medical bills, along with allowing juries to determine liability and damages separately. More specifically, here are some key parts: Pain and Suffering: Lawyers can’t tell the jury exactly how much money they think someone should get for pain and suffering. Instead, the jury decides based on what they think is fair. Answering a Lawsuit: When someone is sued, they have 30 days to respond. If, for some reason, they ask the court to clarify something, they can get a little more time. Legal Costs: There is no double-dipping. You can’t get paid twice for the same legal costs, like lawyer fees. Contract Disputes: If someone breaks a contract, and if they were really difficult or acted in bad faith, you can ask for legal costs. Seat Belts: If someone wasn’t wearing a seat belt, it can be introduced as evidence in court to show the other party might be partly responsible for their injuries. Negligent Security: If you didn’t keep your property safe and someone got hurt, you might have to pay damages, but only if you knew there was a risk and didn’t fix it. Security Contractors: If a company is hired to keep a place safe, the same rules that the property owner has then apply to them being responsible if someone gets hurt. Medical Costs: You can only ask for money to cover necessary and reasonable medical costs. Trial Phases: Trials can be split into separate parts. First, to decide who is responsible, then how much money should be given and, lastly, if there should be extra penalties or fees. Here’s how the reform may affect auto dealerships: Reduced Liability Risks: The Act introduces stricter standards for negligent security and premises liability, potentially making it harder for customers to sue dealerships for injuries on their property. Stricter Evidence Standards: The Act restricts some types of evidence that can be presented in personal injury cases, potentially making it more difficult for plaintiffs to win cases against dealerships. Modified Comparative Negligence: The Act updated the modified comparative negligence rule. For example, a customer may not be able to recover damages from the dealership if they are found to be more than 50% at fault in an accident. Limited Punitive Damages: The Act places a cap on punitive damages in many cases, limiting the amount that injured parties can be awarded. Lower Insurance Premiums: By limiting damages and making it more difficult to win lawsuits, the Act could ultimately lead to lower insurance costs for businesses, including dealerships. While critics still question the eventual outcome of the Act, experts point to Florida as a shining example of what can happen. Florida’s tort reform was signed into law in 2023, and since then, the state has seen a nearly 6% reduction in insurance premiums and has 11 new carriers coming into the state writing policies. In a February 2025 statement from Gov. DeSantis’ office, it was reported that 60% of insurance carriers have expanded business in the state and 40% filed for a rate decrease. While specific price reductions cannot be guaranteed, when asked, Georgia Commissioner King stated that the Act gives him more footing to push back or ask to review the companies’ data if they came to him requesting higher premiums. If Georgia can achieve even half of the results that Florida has had, it would be a huge win, giving small businesses a much-needed lifeline. 23 THE GENERATOR
Turning Up the Heat Early Start on Heat Illness and Prevention Requirements BY HAO NGUYEN, ESQ. SENIOR PRODUCT AND REGULATORY COUNSEL, COMPLYAUTO THE GENERATOR 24
Heat-related injury and illness have been consistently among the top five issues that the Occupational Safety and Health Administration (OSHA) has cited businesses for nationwide. With such a vast number of requirements of heat illness and injury prevention laws, it is never too early to understand the processes you need to have in place to ensure that you are providing a safe working environment for your employees as well as protecting your business from any inspection by state or federal agencies. Late last year, OSHA published in the Federal Register a Notice of Proposed Rulemaking (NPRM) for Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings. This standard would require employers to create a plan to evaluate and control heat hazards in their workplace and train their employees on these concepts. The public comment period closed in January. This follows in the footsteps of several other states that have adopted their own standards. Additionally, OSHA launched the National Emphasis Program (NEP) in 2022, which expanded its ongoing initiative to protect employees from heat-related hazards in both indoor and outdoor workplace settings by stepping up enforcement and providing compliance assistance and outreach efforts. The NEP is part of the broader Department of Labor response to President Biden’s Executive Order “Tackling the Climate Crisis at Home and Abroad.” Absent specific regulations, OSHA has consistently relied on the authority granted to it by Section 5 of the OSHA Act, also known as the General Duty Clause, and has leaned on this authority to penalize businesses for workplace heat-related injuries and deaths. The following requirements for general industry (i.e., dealers) apply to all states. Meaning you only have a few months to develop and implement a heat illness prevention program if you do not currently have one. Any additional emphasis by various states will be identified accordingly. HEAT ILLNESS PREVENTION PROGRAM A written heat illness prevention program must be established that details specific procedures for monitoring and responding to heat hazards. This plan must address how supervisors will monitor ambient temperatures, assess worker exertion levels and implement appropriate controls. The program must be readily available to employees and regularly updated to reflect changing workplace conditions. WATER PROVISION Employers must provide fresh, cool drinking water in sufficient quantities (at least 1 quart per employee per hour) that is easily accessible throughout the work shift. The water must be located close to the work area and maintained at a temperature that encourages regular consumption. Workers should be encouraged by the employer to drink water frequently, approximately every 15-20 minutes, even if they don’t feel thirsty. REST AND SHADE Accessible shaded or air-conditioned rest areas must be provided where employees can cool down during breaks. Rest breaks are scheduled based on temperature, workload and worker acclimatization, with increased frequency during extreme heat. Shade structures must be large enough to accommodate all employees on break. California Requirements Businesses must designate a “cool-down area” (i.e., an area that is blocked from direct sunlight and shielded from other high radiant heat sources and is either open to the air or provided with ventilation or cooling) that is located as 25 THE GENERATOR
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy MTg3NDExNQ==