2025 • Issue 3 Official Publication of the Louisiana Automobile Dealers Association RANSOM WARE Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate Is Your Vendor Cutting Corners with AI? The High Cost of Poorly Implemented “Innovation” in Warranty Reimbursement A Response Plan Is Essential for Auto Dealers
10543 South Glenstone Place, Baton Rouge, LA 70810 • 225-769-9923 • theldsgroup.com LADA'S ENDORSED F&I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 60+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel Lee Martinez Regional Manager Dan Stowers Territory Manager Curtis Loftin Territory Manager Edward Burnett Territory Manager Alfonso ‘Fons’ Augustine Territory Manager Mustafa ‘Moose’ Mohammad Territory Manager Nick Olsen Territory Manager Brandon Choina Territory Manager
©2025 The Louisiana Automobile Dealers Association (LADA) | The newsLINK Group LLC. All rights reserved. Up to Speed is published four times per year by The newsLINK Group LLC for LADA 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 LADA, 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. Up to Speed is a collective work, and as such, some articles are submitted by authors who are independent of LADA. 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. 2025-2027 EXECUTIVE COMMITTEE Patton Fritze Red River Chevrolet Chairman Rand Alford Alford Motors Inc. Vice Chairman, District 15 Ryan LeBlanc Sterling Automotive Group Treasurer, District 5 Kristie M. Hebert Arceneaux Ford Immediate Past Chairwoman Lawrence S. Searcy Jr. Walker Automotive District 8 Clint Hixson Hixson Autoplex of Alexandria District 16 Mark A. Hebert Sr. Hebert’s Town & Country Ford Lincoln NADA State Director OUR TEAM Coulter McMahen President/CEO Katherine Carver Director of Events and Communications Alexandra Hughes Director of Membership Cecilia Shahrdar Member Services Coordinator Mignon LaBorde Administrative Assistant A MESSAGE FROM THE PRESIDENT 4 A National Challenge to the Franchise System By Coulter McMahen, President/CEO, LADA 7 Ransomware A Response Plan Is Essential for Auto Dealers By Bank of America 10 Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate By Fisher Phillips 17 Workplace Violence and the Risk to Dealerships 20 Fine‑Tuned F&I Machine! By Jason Rasti, Executive Vice President, The LDS Group 22 Driving Louisiana’s Economy Annual Contribution of Louisiana’s New-Car Dealers 24 Is Your Vendor Cutting Corners with AI? The High Cost of Poorly Implemented “Innovation” in Warranty Reimbursement By Jordan Jankowski, Chief Operating Officer, Armatus Dealer Uplift 28 Louisiana Automobile Dealers Self-Insurers’ Trust Fund 30 We Want To Hear From You! CONTENTS 3
A MESSAGE FROM THE PRESIDENT A National Challenge to the Franchise System BY COULTER McMAHEN, PRESIDENT/CEO, LADA Across the country, franchised automobile dealers are facing significant challenges to our business model. A recent move by the Alliance for Automotive Innovation, which represents nearly every major automaker, has raised deep concern for dealers and the state associations that represent them. In July, the Alliance submitted a letter to the U.S. Department of Justice’s Anticompetitive Regulations Task Force. This letter was sent without prior notice or discussion with NADA, which speaks volumes about the current tone of the conversation. In that letter, the Alliance argued that many state-level franchise laws, including those that ensure fair warranty reimbursement, protect against encroachment and preserve dealer territories, are “outdated” and “anti-competitive.” In essence, they are challenging the very framework that keeps the retail auto system fair and functional for consumers and dealers alike. For years, NADA, the Alliance and state dealer associations have worked together on issues shaping the broader industry. That history makes this development troubling, but more importantly, it underscores why strong engagement, both nationally and locally, remains essential to protecting our industry. STRONG GRASSROOTS ADVOCACY AT HOME AND IN WASHINGTON Our Legislative Roadshow this August showed just how powerful our network is when we come together. Over the 4
What will tomorrow look like? hubinternational.com Scan the QR code to learn more. It may not be what you expected. With HUB, you have a partner who is committed to supporting and protecting you, assisting to align business and personal goals to protect your profits and drive organizational vitality and resilience. Risk & Insurance | Employee Benefits | Retirement & Private Wealth David W. Alligood, Senior Vice President Office: 225-218-2410 david.alligood@hubinternational.com course of several days, our team brought together dealers and legislators across Louisiana to discuss key policy issues and gather feedback ahead of the 2026 legislative session. The participation was exceptional, and the input we received will directly shape LADA’s advocacy priorities moving forward. In September, LADA leadership joined our Louisiana Congressional delegation in Washington, D.C., during the NADA Washington Conference, where hundreds of dealers from across the country met with lawmakers to defend the franchise system. The message was clear: Franchised dealers are the backbone of their local economies, providing jobs, generating tax revenue and giving back to their communities. We are fortunate that Louisiana’s Congressional delegation stands firmly with our dealers and recognizes the vital role we play in our state’s economy. Our ongoing challenge at the national level is to ensure that all policymakers in Washington share that same understanding and continue to uphold the state-based framework that has served both dealers and consumers so well. BIG NEWS FROM THE LADA WORKERS’ COMPENSATION FUND I am pleased to share some very positive news from the LADA Workers’ Compensation Fund. Beginning Jan. 1, members will see meaningful savings through a 15% rate reduction and a 46% dividend return, which is the largest distribution in the fund’s history. These results reflect the program’s financial strength, our members’ dedication to safety and the value of working together through an association-driven fund designed to serve Louisiana dealers. It is a clear example of what can be achieved when dealers unite around shared goals and sound stewardship. NEW MEMBER PORTAL LAUNCHED THIS FALL We were also proud to launch our new online member portal this October. The updated platform makes it easier than ever to manage your membership, access exclusive resources and stay connected with LADA. I encourage every member to log in, explore the new features and confirm that your company’s contact information is up to date as we prepare for our annual dues renewal period in January. LOOKING AHEAD As we look toward the year ahead, remember that LADA will always be on the front lines advocating for you, but we can only be as strong as the dealers we represent. Your involvement, your voice and your commitment to doing what is right for your business and community are what make this association strong. Together, we will continue building on this year’s progress and ensure Louisiana’s dealers remain independent, competitive and protected for generations to come. 5
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?® Thomas Ballard, thomas.ballard@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.
RANSOMWARE A Response Plan Is Essential for Auto Dealers BY BANK OF AMERICA High-profile cyber incidents have highlighted the need for auto dealerships to prepare for the impacts due to loss of critical services and theft of sensitive data. Here are some factors to consider when creating an incident response plan. KEY TAKEAWAYS • Auto dealerships are facing an increasing number of cyberthreats that can debilitate operations and compromise customer and financial data. • Creating a ransomware response plan is a critical piece of any dealership’s preparedness. • By implementing basic controls and best practices, an incident response plan can improve security for dealerships, even those with limited IT and cyber defense budgets. When a software and applications vendor was compromised by ransomware in June 2024, thousands of auto dealerships felt the effects. Essential management systems became inaccessible, sales and financing transactions went manual or stopped, and sensitive customer and business data was compromised. By one estimate, auto dealerships lost over 50,000 new vehicle sales and suffered over $1 billion in damages in the month after the incident was reported.1 Although this was an “upstream” incident that began with a critical service provider, the ransomware event highlighted the elevated risk auto dealerships face. A 2024 study found that 35% of surveyed dealers had dealt with some type of cyber incident in the past year. What’s more, ransomware was rated as the most serious cyberthreat these businesses face.2 In this environment, every dealership needs a plan for what they must do if they’re targeted. WHY A RANSOMWARE RESPONSE PLAN IS ESSENTIAL Even dealerships that lack the resources to hire security professionals or invest in advanced controls can greatly improve their defenses by constructing a response plan that includes proactive measures such as data protection, raising employee awareness and implementing core best practices. 7
A plan that outlines how a business can prepare against cybersecurity threats and respond to incidents can help limit the damages related to loss of data and operations. It can also improve the chances of avoiding many types of incidents, including ransomware. The following guidelines can help dealerships create a response framework that can be tailored to their specific organization and capacity for planning. KEY ELEMENTS OF A RANSOMWARE RESPONSE PLAN Ransomware response depends on a timely assessment of a live incident’s severity and impact, clearly defined roles and reactions and a thorough investigation to ensure the threat is neutralized and operations can be brought back to a secure state. To be effective, your strategy must be in place before an incident occurs. Here’s how to get started. BEFORE AN INCIDENT 1. Prepare • Educate key personnel regarding current cyber-risks and objectives of cybercriminals. • Appoint the most qualified individual to lead the creation, implementation and updating of the response plan. Alternatively, you can supervise a contract with a professional security vendor that creates the response plan. • Conduct a company risk assessment and be sure to include data inventory. • Create and maintain encrypted, offline or immutable backups of essential company and customer data. • Implement strong protections around identity and access management, such as multifactor authentication on all devices that can access company networks. • Formulate, test and continuously evolve the response plan. It should identify stakeholders and their roles, communication tactics and off-network channels, reporting procedures required by regulatory bodies or local law enforcement, and criteria for restoration of safe states. 2. Backup and Test • Regularly confirm the integrity of backups. • Do not look at backups as the “last line of defense.” No backup method is 100% cybersecure, and stealthy bad actors can corrupt backups even before they launch ransomware. DURING AN INCIDENT 3. Detection and Assessment • Use security tools to monitor network traffic for evidence of an adversary’s presence or movement and issue alerts. • Assess which systems are easily compromised by ransomware and isolate them. Coordinate a shutdown of all devices that cannot disconnect from the affected systems. • Reset all credentials and passwords connected to affected systems. 4. Communication and Reporting • Inform all internal teams and stakeholders on a preselected communication channel to ensure individuals essential to the response are engaged. • As needed, report the incident to affected third parties or vendors that assist your dealership with security and incident response. • Notify cybersecurity agencies and/or local law enforcement to maintain regulatory compliance and to receive additional assistance or guidance. • Communicate with third parties and clients to ensure they have not experienced financial impacts after the incident. 5. Containment and Remediation • Disable any system involved in the initial breach, as well as connected systems that malicious actors could use to access other parts of the company network or data systems. • Analyze network traffic and endpoints for evidence of the malicious actors’ persistence. Remediate vulnerabilities. • Rebuild the systems that are most critical to business operations. • Reset passwords and permissions. 8
AFTER AN INCIDENT 6. Recovery and Response Plan Update • Complete a thorough forensic analysis of the incident and document all steps taken to eliminate the ransomware or remove footholds the threat actor established. • Confirm that backups remain uncorrupted and don’t contain malicious payloads. Restore affected systems. • Inform all relevant third parties and oversight agencies of the steps taken and the removal of the threat. • Make improvements to company systems based on forensics. • Continue to maintain vigilance. Update security systems regularly and adapt employee training to reflect lessons learned. To learn more, visit business.bofa.com. "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. 1. Anderson Economic Group, “Dealer Losses Due to CDK Cyberattack Reach $1.02 Billion.” 2. CDK Global, “The State of Dealership Cybersecurity 2024.” 9
Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate BY FISHER PHILLIPS As political tensions surge and employee expression spills into every corner of the modern workplace, employers are finding themselves caught in the crossfire. From off-hours protests to heated workplace debates and viral social media posts, the question for us isn’t just whether speech is free, but whether it’s job-protected. With laws, rights and risks swirling around every conversation, t-shirt, post and “like,” it’s time for a clear-eyed guide. Here’s what your business needs to know about navigating employee speech in various scenarios, both on and off the clock. SCENARIO 1: AN OFF-DUTY RANT GOES VIRAL An employee posts a politically charged rant on their personal social media account over the weekend. It’s not about work, but it causes public backlash. Legal Analysis Private-sector employers are not bound by the First Amendment’s free speech protections, which only restrict government action. That said, employers may not be able to discipline off-duty speech with total impunity. Several states — including California, New York and Colorado — have statutes protecting employees from retaliation for lawful off-duty conduct. Minnesota, Connecticut, Louisiana, South Carolina and Wyoming are among the states that specifically protect off-duty political activity. These laws may prevent employers from firing or disciplining employees for expressing their personal views unless those views have a clear, material impact on the business. Even without a directed state law at issue, the federal National Labor Relations Act (NLRA) could also provide your employees with protection. If the social media post relates, even indirectly, to the employee’s terms and conditions of employment, it may qualify as protected “concerted activity.” This is especially true if the post touches on workplace issues shared by coworkers (e.g., wages, scheduling, discrimination). Under recent interpretations, the National Labor Relations Board (NLRB) has cast a wide net over what counts as protected speech, and this protection applies to non-union workplaces as well. Employer Guidance • Check local laws first. Understand whether your state limits employer action on off-duty political or personal speech. These laws may surprise you, as some prevent employers from terminating the employment of someone who posts even clearly offensive posts unless you can show the communication caused direct business harm. • Evaluate the workplace impact. Determine whether the post caused operational disruption, reputational damage or significant internal strife. Without the previously stated, discipline may not be legally or strategically justifiable. • Enforce policies neutrally. Whether the post supports or opposes a cause, the focus should be on the impact, not the ideology. Selective enforcement invites discrimination claims. • Document the decision-making. If you discipline, ensure documentation ties the action to the legitimate workplace impact you considered. Avoid using inflammatory or subjective language. • Consult legal counsel. These decisions often exist in legal gray areas, and public scrutiny can escalate quickly. Getting a second opinion can help de-risk the response. 10
SCENARIO 2: POLITICAL DEBATE AT THE WATER COOLER Two employees get into a heated political argument in the breakroom. Other workers complain that it's creating a hostile or toxic environment. Legal Analysis Political debates in the workplace are becoming more common — and more combustible. While the NLRA protects employees who engage in conversations about workplace conditions (regardless of whether the employees are members of a labor union), the law does not give employees free rein to disrupt the workplace. Employers may lawfully restrict political speech that creates a toxic atmosphere, distracts from productivity, or can be appropriately characterized as harassment or bullying. That said, you must tread carefully. If employees are discussing matters that relate to shared working conditions, such as diversity policies, unionization or workplace safety, their speech may be protected. Discipline in that context could trigger an unfair labor practice charge. The challenge is distinguishing between disruptive or discriminatory conduct (which may be regulated) and protected activity (which may not). If the discussions relate to other protected activity (complaining about discrimination or harassment), then fair employment laws might be triggered. Employer Guidance • Set clear boundaries in your code of conduct. Your policies should emphasize respect and civility in all workplace interactions, including political conversations. Make it clear that hostile or demeaning speech won’t be tolerated, regardless of the topic. • Train managers to intervene early and neutrally. You should teach supervisors to spot the line between a healthy discussion and a volatile one. They should not express political views themselves or allow situations to escalate. • Focus on conduct, not content. If you take action, ensure it’s about the behavior — disruption, intimidation, name-calling — and not the opinion expressed. • Be consistent. If you address one type of political conflict but ignore another, you create the risk of a discrimination or retaliation claim. 11
SCENARIO 3: WORKERS PLAN A WALKOUT Employees organize a walkout in support of a political movement, similar to the Day Without Immigrants or recent global protest days. Legal Analysis The legality of employee walkouts hinges on the purpose behind the protest. If the protest is purely political and unrelated to workplace issues, such as a walkout opposing foreign policy or supporting a national election candidate, it likely falls outside the protection of the NLRA. In those cases, employers may treat the absence as unexcused and impose discipline under normal attendance policies. However, if the walkout is tied to workplace issues or advocacy for better working conditions, it could be protected as “concerted activity.” For example, employees walking out to protest workplace discrimination or to express solidarity with a national labor strike may fall under NLRA protection, even if your organization is not unionized. The NLRB under the Biden administration showed a growing willingness to connect national issues to local employment conditions, particularly under a broad reading of employee rights. We do not expect this trend to continue under the Trump Board once it regains a quorum. Employer Guidance • Determine the purpose of the protest. Ask whether this is political advocacy or workplace-related activism. If there’s a link to workplace terms, protection may apply. • Avoid snap discipline. Even if a walkout seems unprotected, consult counsel before issuing discipline. An inaccurate legal assumption can backfire. • Reinforce your attendance and conduct policies. Make sure employees understand how protest-related absences will be treated in advance. Apply policies consistently. • Prepare a contingency plan. If you anticipate workplace disruptions, line up backup coverage, communicate clearly and debrief afterward to reset expectations. 01MK8232 05/25 You’re free to live your life out loud! Because you’ve got the compassion of the cross, the security of the shield, and the comfort of Blue behind you. 12
SCENARIO 5: EMPLOYEE DEMANDS “FREE SPEECH” RIGHTS An employee challenges a policy restricting political speech, claiming it violates their First Amendment rights. Legal Analysis One of the most common misunderstandings among employees is believing the First Amendment protects their speech at work. While that may apply in public-sector employment, it has no direct application in the private sector. However, some states provide narrow protections for off-duty political activity, especially when the speech has no connection to the workplace or employer. Still, the law does not give employees carte blanche to say whatever they want in the workplace or on platforms where their employer may be impacted. You retain the right to impose reasonable restrictions on workplace speech to preserve productivity, safety and a respectful environment. It’s a balancing act between creating space for diverse perspectives and maintaining order. Employer Guidance • Educate employees. Consider issuing FAQs or training to clarify that the First Amendment doesn’t apply to private workplaces, and explain how your policies balance expression with workplace cohesion. • Enforce policies neutrally. Don’t suppress one viewpoint more harshly than another. Fair and even application is your best legal defense. • Refine your messaging. When enforcing restrictions, emphasize business impact, not ideology. Reiterate that all employees must follow the same rules regardless of beliefs. • Respect protected off-duty conduct. If your employee’s speech occurred off-hours and in a jurisdiction with political activity protections, proceed with caution. Seek counsel before taking action. SCENARIO 4: DRESS CODE DISPUTES An employee wears a shirt with a political slogan, and another wears a Black Lives Matter lapel pin. Your dress code prohibits all messaging. Additionally, uneven enforcement of dress codes — allowing purportedly patriotic or humorous slogans but prohibiting political or social messages — can expose employers to legal risk. If messaging restrictions disproportionately impact one group of employees or one viewpoint, a discrimination claim could follow. Employer Guidance • Reassess your policy. If your dress code prohibits all messaging, make sure it’s uniformly enforced and tied to a legitimate reason, such as safety, customer expectations or professionalism. • Apply it evenly. You can’t allow some messages and ban others based on subjective content. If you prohibit “BLM” attire, you should also prohibit “Back the Blue” messaging, for example. • Avoid knee-jerk enforcement. If the messaging relates to labor rights or workplace activism, call your lawyer before issuing discipline or sending someone home. • Communicate the rationale. When enforcing the policy, explain the focus is on maintaining a distraction-free, respectful environment — not silencing ideas. 13
SCENARIO 6: A MANAGER MAKES POLITICAL STATEMENTS TO STAFF A supervisor frequently shares their personal political views in team meetings. Some employees feel pressured or uncomfortable. Legal Analysis When a manager shares political views with those who report to them, legal risks multiply significantly. Even if the statements aren’t explicitly coercive, the power dynamic can create the perception of pressure, especially if employment decisions follow. Employees may feel silenced or retaliated against for not agreeing with their manager’s views. From a legal perspective, such speech could open the door to claims of discrimination, retaliation or hostile work environment, especially if the political commentary touches on race, religion, gender identity or national origin. Managers are held to a higher standard because their words are presumed to carry the weight of the company. Employer Guidance • Train your leadership team. Make it clear that managers should avoid discussing personal politics with subordinates and must never appear to favor or disfavor anyone based on political alignment. • Create reporting channels. Ensure employees can safely raise concerns about inappropriate speech by supervisors without fear of retaliation. • Respond swiftly. If a complaint arises, investigate promptly and document the findings. Corrective coaching is often sufficient, but more serious consequences may be needed in egregious cases. • Model the right tone. Culture starts at the top. Your leadership team sets the example for respectful, inclusive communication across the company. WHAT EMPLOYERS SHOULD DO NOW The legal landscape surrounding employee speech is more complex than ever. While you have significant discretion to shape workplace norms, that discretion is bounded by state laws, federal protections and public expectations. A one-size-fits-all approach won’t cut it. Here’s what your business can do now to stay out of the crossfire: • Audit your policies on political expression, conduct, social media and dress code. Make sure they’re clear, enforceable and compliant. • Train managers to handle political tensions respectfully and neutrally — and avoid injecting their own views into the workplace. • Monitor enforcement for bias. Whether it’s discipline, messaging or investigations, make sure all actions are consistent across the board. • Prepare for protest-related absences. Have a contingency plan for potential walkouts or disruptions linked to national events. • Get legal support early. When in doubt, loop in your counsel, especially in high-visibility or legally gray situations. CONCLUSION Make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information on the issues discussed in this insight. If you have questions about these issues, please contact your Fisher Phillips attorney or any member of our Labor Relations Group. Also, make sure to visit our new Administration Resource Center for Employers to review all our thought leadership and practical resources. This article was originally published on fisherphillips.com. To view it, scan the QR code. https://www.fisherphillips.com/en/news-insights/ politics-protests-and-posts.html 14
When you sign up for Put the Brakes on Litter, Keep Louisiana Beautiful will provide the following to participating dealerships free of charge: A roadside litter reduction campaign that is positive and inviting to your customers. A vertical banner and counter sign to display in your dealership showroom. Litter prevention kits for distribution to your customers at the time of vehicle purchase. Kits will include a car litter bag, litter prevention tips, and a coaster with the litter hotline number. A digital toolkit, including a press release template to announce your partnership, digital ads, social media graphics, and sample posts. Questions? Contact info@keeplouisianabeautiful.org. Visit keeplouisianabeautiful.org to learn more about litter prevention. With your help, we can clean up our roadways. Scan to Sign Up! Supplies Are Free! The Put the Brakes on Litter campaign from Keep Louisiana Beautiful offers your automobile dealership an opportunity to help reduce litter along our roadways. Sign Up For Free Today! Why put the brakes on litter? Over 143 million pieces of litter are on Louisiana’s roadways. Over 79% of roadside litter is from motorists. The litter problem costs Louisiana over $91 million each year. 92% of Louisianans believe litter is a problem where they live.
WORKPLACE VIOLENCE AND THE RISK TO DEALERSHIPS The effects of workplace violence are profound, including physical and emotional suffering, destroyed careers and harm to companies and communities. And it comes at a staggering economic price. Although estimates differ, researchers have put the cost of workplace violence at as much as $56 billion annually — and that figure is likely significantly low. No industry is free of violence, but the problem is particularly prevalent in the retail sector. With incidents ranging from verbal abuse to physical assaults, it can have a serious impact on employees, customers and the retailer’s reputation. A poll conducted by Liberty Mutual showed that, on average, for every $1 invested in improving workplace safety, approximately $3, or more, is saved. Yet, according to the OSHA, only 30% of businesses currently have formal safety and health programs in place. Given the considerable number of 17
individuals in today’s workforce, this percentage is concerning and highlights the need for improvement. Employers who prioritize safety not only protect their employees but also foster a more productive and engaged workforce. Organizations should take violence prevention and overall safety seriously. Initiative-taking measures are essential to ensuring both the well-being of employees and the long-term success of the company. In a workplace environment, such as a dealership, employees regularly interact with individuals who have diverse personalities and working styles. Under the pressure of meeting goals and deadlines, conflicts can naturally arise. If employees lack the skills to manage these conflicts effectively, situations can escalate into workplace violence. Additionally, employees in retail operations often encounter abusive customers, which may range from verbally abusive to in rare cases, physical harm. While active shooter incidents in workplaces are statistically rare, they are a serious and sadly growing threat. Being prepared is crucial. POTENTIAL RISKS AND COSTS TO EMPLOYEES When workplace violence occurs, it can bring an organization’s operations to an immediate halt. Employees are often left in shock by the disruption and chaos, unsure whether to intervene or prioritize their own safety. If the violence results in injury, medical insurance claims are likely to follow, and in more severe cases, legal action may be pursued. According to the National Safety Council, the average cost for one small business to mitigate one incident of workplace violence can escalate as high as $1.3 million and does not address any impact on work productivity. STEPS THAT DEALERSHIPS CAN TAKE TO CONTROL WORKPLACE VIOLENCE Managers and owners must recognize the critical importance of ensuring a safe and secure workplace. Every employee has the right to feel protected and confident in their work environment. Consider this: Every year in America, more than two million workers become victims of workplace violence, and according to a survey from the Society of Human Resource Management (SHRM), one in seven workers feel unsafe at work. The steps to forming a workplace safety program include: 1. Background Checks: It is essential to ensure that those who represent your company are a good fit and uphold the organization’s values. Implementing a comprehensive screening process is a proactive measure that can play a critical role in maintaining a safe and secure environment for all employees. 2. Have Clear Violence Prevention Policies in Place: Establish clear policies and procedures specifically designed to address and prevent violent behavior. Well-defined rules create structure and accountability within an organization. Most companies adopt a zero-tolerance approach to violence, making it clear that any form of physical altercation or inappropriate conduct will result in immediate termination and may lead to further legal action. It is essential that all employees are fully informed of these policies and understand the consequences of violating them. 3. Training: Provide regular training for all employees. It is crucial that staff are equipped with the knowledge to recognize and respond to potential threats. Employees should be trained to identify early warning signs of escalating behavior, including verbal aggression, noticeable changes in body language, social withdrawal and signs of agitation. In addition, organizations should have a clearly defined emergency response plan in place, 18
Complete Dealership Compliance Improve Safety, Lower Risk, Save Money. 400K Compliance issues and safety concerns resolved annually 8m Employees successfully trained in safety standards 800+ Cumulative years of consulting experience in auto compliance & safety 15k Auto and car dealership clients prioritize safety with KPA To learn more visit kpa.io/automotive or reach out toinfo@kpa.io outlining procedures for where to go and what actions to take if violence occurs. Supervisors and managers should receive specialized training on conflict resolution and de-escalation techniques to help defuse potentially violent situations before they escalate. 4. Offer Employee Assistant Programs (EAPs): Acts of workplace violence often stem from underlying personal or professional stressors that build up over time. By providing support services such as counseling, therapy and stress management resources, organizations can help employees address their concerns in a healthy and constructive manner. Offering access to EAPs demonstrates a company’s commitment to employee well-being and can be a cost-effective strategy for reducing the risk of workplace violence. 5. Create a Positive Work Culture: Foster a welcoming environment that promotes respect, inclusivity and open communication. Establishing an open-door policy encourages employees to voice their concerns and report issues without fear of retaliation. Additionally, employees should feel confident that any reports or concerns they bring forward will be managed confidentially and addressed appropriately. The well-known phrase, “If you see something, say something,” should be actively promoted within the organization to create a culture of vigilance and shared responsibility for workplace safety. 6. Employee Recognition: Implement recognition and reward programs that encourage employees to actively contribute to a safe work environment. Acknowledging and praising employees for consistently upholding safety standards, following policies and procedures and promoting a culture of respect reinforces positive behaviors. Recognitions can be as simple as verbal appreciation or more formal, such as the “Safety Employee of the Month” award for outstanding commitment to workplace safety. Incentive programs not only boost morale but also foster a shared sense of responsibility among staff to maintain a secure and supportive environment. Sadly, with so much at stake, too many companies are not ready — but preparedness can make all the difference. While threats may be unavoidable, preparedness offers a much more positive outlook. Not only can it help protect employees and company assets from harm, but statistics show that the cost of prevention is 100 times less than the cost of managing the aftermath of a tragedy. 19
Fine‑Tuned F&I Machine! BY JASON RASTI, EXECUTIVE VICE PRESIDENT, THE LDS GROUP The unmistakable growl of a NASCAR engine during a daring slingshot. A well-executed 6-4-3 double play. A perfect, play-action pass that freezes the defense for the game-winning touchdown. These are recognized representations of “fine-tuned” techniques. In other words, they are all markers of beauty in their respective industries! However, to a car dealer, nothing is as beautiful as well-executed processes in the dealership. Your customers are taken care of, and your employees carry out each step on time and just as prescribed by you and the management team. Running this play correctly and consistently creates great profitability and happy customers who keep coming back! Although sales have been solid in 2025, the automotive business isn’t easy, and profitability is challenging. Interest rates haven’t receded, while virtually all manufacturers have increased their costs substantially over the last three years. Front-end gross has eroded, yet expenses like floor plan interest, insurance and human capital have gone up. On a positive note, the current environment means that the F&I department is primed to shine. Contrary to front-end gross, virtually all F&I measurables, industry-wide, are on the upswing! So, the question becomes, are you ready to boost F&I performance and turn your F&I department into a fine-tuned F&I machine? 20
According to Merriam-Webster, “fine-tune” means to adjust precisely so as to bring to the highest level of performance or effectiveness! Our dealer partners are averaging over $2,100 per retail unit sold (not including any overrides), up more than $500 in just five years. We are also seeing all-time highs for both VSC penetration, 58%, and products per deal, averaging 2.0 in 2025. TIPS FOR A TUNE-UP! Performance Standards: Everything starts with a Standard of Performance that your team can buy into. Setting standards in a group meeting with the entire management team is best practice. Performance standards should be written, detailed and signed off on by every manager, the dealer and your LDS representative when completed. Continuous and Innovative Training: Training is not just an event; it’s key to dealership profitability, and it should be practiced frequently. Critically, training should reflect the central role that F&I plays in today’s market. The LDS Group is proud of recent innovations in our training line-up is specifically geared toward creating a fine-tuned F&I machine. Here are some training opportunities available through The LDS Group: • Coaching with Cole, our daily virtual coaching platform, gives your management team an opportunity to receive 15 minutes of training daily from any one of our 12 trainers here at The LDS Group on various Sales and F&I topics. • Elite F&I Training & Pushups are now a regular part of our playbook. Elite training is a one-day, fast-paced event, including six different trainers with six topics on display for 45 minutes each. Pushups features a podcast, conversational style format that is done using Zoom and has proven to be very relatable. • AI-powered objection training & F&I presentation scoring will soon be offered as an in-store 24/7 training platform. F&I managers will be able to practice overcoming customer objections through interactive role-playing. They will also be scored against The LDS Group’s VIP Presentation, highlighting their strengths and weaknesses during actual customer presentations. This tool will produce data-driven analytics that will help our team target process-training, efficiently and effectively. Monthly Performance Meetings: In these meetings, we will discuss F&I performance, comparing your employees to standards and averages in the market. With a positive tone, your team will read their numbers in front of their peers and identify areas of improvement to focus on in the coming month! These add a level of accountability and competitiveness necessary for a fine-tuned machine! Consumers are purchasing more protection products today than ever before in the history of our business. Affordability, cost of repairs, and new technology all play a role in this equation. As we prepare for 2026, developing your fine-tuned F&I Machine is not only essential for profitability, but it will bring important value and protection to customers and drive loyalty! Give us a call at (225) 769-9923, we will be glad to help! 21
Source: Center for Automotive Research, NADA, NADA Industry Analysis, S&P Global, Taxfoundation.org, U.S. Bureau of Labor Statistics, U.S. Census Bureau. $1.1B $15.5B 1.3% Includes income taxes paid for direct, indirect and induced jobs. PAYROLL TOTAL SALES (all dealerships) REGISTRATIONS STATE SALES TAX PAID NATIONAL AUTOMOBILE DEALERS ASSOCIATION NADA Industry Analysis | 8484 Westpark Drive, Suite 500, Tysons, VA 22102 | 800.557.6232 | economics@nada.org NADA Legislative Affairs | 412 First St. SE | Washington, DC 20003 | 800.563.5500 | legislative@nada.org 292 DEALERSHIPS (new car) 34,217 TOTAL JOBS (created by dealerships) Includes 15,716 direct jobs and 18,502 indirect and induced jobs. 54 EMPLOYEES (average per dealership) Driving Louisiana’s Economy Annual Contribution of Louisiana’s New-Car Dealers Numbers reflect annual economic activity during 2024. $71,955 Average Annual Earnings $302M State and Federal Income Taxes Paid Louisiana’s Share of Total U.S. New-Vehicle Registrations $693M
SLIP, TRIP, AND FALL PREVENTION MADE SIMPLE Slip, trip, and fall incidents are among the leading causes of workplace injuries nationwide. According to the National Council on Compensation Insurance (NCCI), from 2021 to 2022, the National average cost per Slip, Trip, and Fall claim was $46,592. During the same time, the Louisiana Automobile Dealers Association Self-Insurers’ Trust Fund (LADA-SIF) averaged $19,238 per Slip, Trip, Fall Claim. That difference shows the value of membership and how Fund Members are putting the safety tools and resources provided by Risk Management Services (RMS) into practice. Slip, Trip, and Fall incidents can cause serious injuries and create real financial strain for dealerships through medical bills, lost work time, workers’ compensation claims, or liability costs. With their busy service bays and showroom floors, automotive dealerships face risks from slippery surfaces, uneven flooring, and cluttered walkways. Practicing strong safety habits not only cuts down on workers’ compensation claims but could also help minimize liability claims from customers or vendors. The good news is that most slip, trip, and fall incidents can be prevented by being proactive and taking a few simple steps. If your dealership has questions about the LADA-SIF, please feel free to contact Jean Robért at 1-800-351-RISK (7475) or by email at JRobert@RMSLA.com. The RMS Loss Prevention Team is available as an added resource. We can offer extended safety and health support, tailored to your Dealership’s needs, such as, written safety plans, on-site training, help with regulatory compliance, and much more. Taking a proactive approach helps to protect your employees, reduce claims, promote a strong safety culture, and keep operations running smoothly. SIMPLE STEPS TO REDUCE SLIP, TRIP, AND FALL INCIDENTS • Keep floors clean and dry • Promptly address spills and leaks • Maintain adequate lighting • Use slip-resistant mats in high-traffic and service areas • Ensure all walkways & workspaces are free of clutter and obstacles • Regularly inspect walking and working surfaces for damage, and repair as needed Employees should be empowered & expected to take action by cleaning up spills, removing trip hazards, and reporting hazards to management. This will promote a strong and proactive Safety Culture for the entire dealership. RMS has proudly served LADA-SIF Members since 1998. Our knowledgeable and dedicated team works closely with Members to provide a full range of services, including Marketing, Loss Prevention, Accounting, Claims Administration, Underwriting & Policy Services. RMS is committed to helping Members manage risks efficiently and effectively by providing practical health and safety recommendations. RMS IS YOUR PARTNER GOING BEYOND BASIC LOSS PREVENTION
Is Your Vendor Cutting Corners with AI? The High Cost of Poorly Implemented “Innovation” in Warranty Reimbursement BY JORDAN JANKOWSKI, CHIEF OPERATING OFFICER, ARMATUS DEALER UPLIFT Across the retail warranty reimbursement industry, vendors have begun aggressively touting AI as a transformative force — promising faster processing, smarter job classification and better analytics. However, beneath the marketing buzzwords lies a more complicated reality. When implemented without care or understanding, AI can introduce risk and inaccuracy, undermining the very goals it claims to achieve. AI SHOULD SUPPORT HUMAN JUDGMENT — NOT REPLACE IT AI is a powerful tool when it’s used to enhance human expertise. It’s effective at pattern recognition, trend analysis and automating repeatable tasks, but it is not a stand-in for deep domain knowledge or regulatory insight, especially in complex and specialized processes like warranty reimbursement. Unfortunately, some vendors are deploying AI inappropriately — using it as a stopgap for underlying system flaws. One example is the reliance on AI to overcome poor opcode usage in dealer management system (DMS) data. While AI may appear to “fill the gaps,” the correct data is often already present within the repair order. The real issue lies in software that lacks the ability to accurately extract and interpret this information. Overlaying AI to patch these 24
shortcomings isn’t innovation — it’s a shortcut that may compromise data integrity. RESPONSIBLE AI USE IS NOT A SHORTCUT Organizations that use AI effectively do so to enhance the performance of their expert teams, not to automate away critical decision-making. In well-designed systems, AI can help parse data more efficiently, freeing professionals to focus on nuanced analysis, validation and ensuring compliance with state laws. Quality in warranty reimbursement doesn’t come from speed alone — it requires meticulous review and expert oversight. If a vendor suddenly claims vastly improved accuracy thanks to AI, it’s fair to ask: Why wasn’t accuracy a priority before? Is speed worth it if it undermines trust in your rates? In this domain, a lack of quality can directly translate to lost revenue. THERE’S NOTHING NEW ABOUT “NEW” TECH Many of the AI-driven features being promoted today — automated job classification, enhanced data processing, quick turnarounds — have existed for years. The difference lies not in whether the technology is used, but in how thoughtfully and effectively it’s implemented. High-quality vendors have been Compliance with all requirements within the FTC Safeguards Rule was due June 9, 2023. FTC SAFEGUARDS COMPLIANCE PACKAGE Cyber attackers have declared war on the auto industry Only 53% of polled auto dealers are confident in their security 17% of dealers experienced a cyber-attack or incident in the past year $740,144 average ransom amount demanded 84% of consumers polled would not purchase another vehicle from a dealership if their data was breached We´ve got you covered of dealers that chose to become compliant with the FTC Safeguards saw significant improvement of their security after those efforts. OCD Tech secures dealerships with services catered to your unique needs. of auto dealers that signed on for a year of our services have renewed for another year. 75% 100% Additional Benefits Meet security best practices Safeguard against a data breach Safeguard against a ransomware attack Ensure you qualify for cyber insurance coverage Reduce cyber insurance premiums Satisfy the majority of local state data protection and privacy laws BE SECURE NOT JUST COMPLIANT ftc@ocd-tech.com 25
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