2026 • Issue 1 Official Publication of the Louisiana Automobile Dealers Association A Closer Look at Regulatory, Compliance and Employment Laws
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 Rick Barnett 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
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. 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.
A MESSAGE FROM THE PRESIDENT 6 Advocating for Louisiana Dealers By Coulter McMahen, President/CEO, LADA 8 Getting to Know Incoming LADA Chairman Patton Fritze 10 The Dealer’s Guide to New “No Tax on Overtime” Rules Key Tips to Avoid Surprises By Fisher Phillips 14 Advertising Compliance for Louisiana Motor Vehicle Dealers A Layered Regulatory Framework By Lauren Bailey, Vice President of State Legal and Regulatory Affairs, ComplyAuto 15 Don’t Forget Your Dues! 16 Hazardous Waste Disposal The Rules Dealerships Can’t Afford to Ignore By Zach Pucillo CSP, CHMM, Regulatory Director, KPA 18 Protect Your Dealership’s Margins A Guide to Visa’s CEDP Rules By Priority DMS 20 How the One Big Beautiful Bill Act Changes Overtime Reporting for Auto Dealerships in 2026 By Hannis T. Bourgeois LLP 22 2026 Events Spotlight 24 Louisiana Auto Outlook Q1 2026 ©2026 The Louisiana Automobile Dealers Association (LADA) | MBR Connect, formerly The newsLINK Group LLC. All rights reserved. Up to Speed is published four times per year 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 Jenny Leach Accountant CONTENTS 4
A MESSAGE FROM THE PRESIDENT ADVOCATING for Louisiana Dealers BY COULTER McMAHEN, PRESIDENT/CEO, LADA As we step into 2026, I find myself genuinely optimistic about what lies ahead for Louisiana’s franchised dealers. A new legislative year always brings renewed focus, fresh opportunities and — most importantly — a continued commitment to protecting the businesses that power our state’s automotive economy. With the legislative session now underway, LADA remains fully engaged in its core mission: advocating for Louisiana’s dealers and closely monitoring the policies that impact how we operate and serve our customers. This is a responsibility we take seriously, and one we are proud to carry forward on your behalf. PREPARING FOR THE 2026 LEGISLATIVE SESSION The Louisiana Legislative Session began on March 9, and activity is already moving at a rapid pace. More than 1,000 bills have been filed across both chambers, underscoring just how important it is for our industry to remain engaged and represented. LADA’s team is actively monitoring legislation throughout the session and advocating for policies that support Louisiana dealers and the customers we serve. Each session brings a wide range of proposals — some that directly affect our industry, and others that shape the broader business environment in which we operate. We remain focused on advancing proactive legislation that strengthens our industry. This session, LADA is prioritizing two key initiatives. Establishing Association Standing (SB 102 by Sen. Thomas Pressly) This legislation would allow LADA to act on behalf of the dealer body in certain instances when manufacturers violate Louisiana laws designed to protect dealers. In practical terms, it ensures that dealers are not left to face large manufacturers alone when those laws are challenged. For example, if Scout Motors — an affiliate of Volkswagen — were to apply for a dealer license in Louisiana, LADA would have the ability to bring legal action on behalf of all Volkswagen dealers, and the dealer body as a whole, to challenge that conduct. Similar efforts are already underway in other states. In California, the California New Car Dealers Association is currently challenging both Volkswagen/Scout and a partnership between American Honda Motor Co. Inc. and Sony Honda Mobility of America Inc. related to the Afeela electric vehicle brand, alleging violations of franchise laws through direct-to-consumer sales models. Importantly, this legislation would also address prior court precedent that requires dealers to pursue violations of the Louisiana Motor Vehicle Act only through the Louisiana Motor Vehicle Commission (LMVC) when there are other claims alleged (e.g., breach of contract, unfair trade practices). While the LMVC plays an important regulatory role, its authority is limited — it cannot award actual damages. SB 102 would ensure that Louisiana’s dealer protection laws can be fully enforced when violations occur. Modernizing Titling, Lien, and Registration Processes (HB 885 by Rep. Michael Melerine) Our second priority focuses on modernizing Louisiana’s vehicle lien, titling and registration system. By expanding the use of electronic signatures and records — or eliminating the need for wet signatures altogether — this legislation would allow dealers and OMV stakeholders to complete transactions more efficiently and securely in a fully digital environment. This modernization effort is about improving efficiency, reducing delays and creating a better overall experience for both dealers and customers. OPPORTUNITIES TO STAY CONNECTED AND ENGAGED One of the most impactful ways members engaged this session was through Dealer Day at the Capitol in Baton Rouge. Dealers from across the state met directly with legislators, shared their perspectives and reinforced the critical role dealerships play in our communities. The energy and turnout were a powerful reminder of what our industry looks like when it shows up together. Beyond our legislative efforts, LADA has a full calendar of events remaining, designed to keep you informed, connected and engaged with your peers and industry leaders. Our Annual Convention, taking place June 17-21 at the Grand Hyatt in Vail, Colorado, offers a valuable opportunity to step away from the day-to-day, gain fresh perspectives and connect with fellow dealers. It’s always a highlight of 6
the year and an important moment to align around the future of our industry. In the fall, our Legislative Roadshow will once again travel across Louisiana, bringing dealers and elected officials together to review the outcomes of the session and begin shaping priorities for the next cycle. These conversations are essential — they give lawmakers real insight into the challenges and opportunities you face every day. Also, this fall, our Charity Golf Tournament will bring members together in support of the NADA Emergency Relief Fund. As many of us know firsthand, natural disasters can have a profound impact on our communities. This fund provides critical assistance to dealership employees in times of need and continues to make a meaningful difference here in Louisiana. We’re also excited about the continued growth of our NextGen Dealer Program. In February, we hosted our NextGen Summit in New Orleans, where emerging leaders from dealerships across the state spent two days learning about LADA’s legislative priorities and the vital role advocacy plays in protecting our industry. The energy, engagement and commitment we saw from this group were incredibly encouraging. As we move forward, we will continue creating opportunities for these future leaders to connect, grow and take an active role in shaping the direction of our industry. If you or someone on your team would like to get involved, I encourage you to reach out to our staff. Many of you have also seen our #LADealersDoGood initiative on social media, highlighting the meaningful work dealers are doing in their communities. Whether it’s supporting local charities, sponsoring youth programs or stepping up during times of need, Louisiana dealers continue to make a lasting impact. I encourage you to keep sharing these stories — and to invite your elected officials to see that impact firsthand. YOUR INVOLVEMENT MATTERS As we look ahead, I encourage each of you to stay engaged. Attend events. Build relationships with your legislators. Stay informed on the issues that shape our industry. LADA is here to serve and support you — but our strength comes from you. Your involvement, your voice and your commitment are what make our advocacy effective and our industry strong. Thank you for your continued support and partnership. I look forward to working alongside you in the year ahead as we continue building a strong future for Louisiana’s automotive industry. 7
Getting to Know Incoming LADA Chairman PATTON FRITZE As he steps into the role of chairman of the Louisiana Automobile Dealers Association, Patton Fritze brings a leadership approach shaped by a lifetime inside his family’s nearly century-old dealership, Red River Chevrolet. Growing up immersed in the business and later working closely with his grandfather, Jim Fritze, he gained an early understanding of how relationships and community ties form the backbone of a successful dealership. Now the general manager of fixed operations, Patton carries that foundation into a forward-looking mindset — honoring tradition while pushing for continuous improvement and a better customer experience. As chairman, he aims to blend those values with practical advocacy, helping dealers navigate industry pressures, seize emerging opportunities and keep Louisiana’s dealer network strong for future generations. Tell us a little about your background and your experience growing up in the Red River Chevrolet family. From a very young age, I want to say 6-7 (for my kids ), I was invited to attend dealership functions like Christmas parties and Salesman of the Year banquets. One long-standing Red River tradition is celebrating sales and service goals by hosting “camp parties” at our camp on Lake Bistineau, and I got to know many of our employees on a personal level through those events. Believe it or not, several of them are still here! My favorite memories, however, came a little later. After working my way through parts and the body shop, I landed across the hall from my grandfather, Jim Fritze. For a little over two years, I worked closely with him and got to know my grandfather not just as a grandchild on his knee, but as a man. He was a class act. I will always be grateful for that experience, and I try my best to channel his wisdom in every decision I make. How are you balancing tradition with new ideas in the dealership? Because we are a 94-year-old business, I think it’s important to honor traditions and be true to our core principles. But nostalgia can turn into neglect, and distinguishing between the two can be challenging when you work in that space every day. I think the best approach is to see your dealership through your customers’ eyes, then do your best to improve every touchpoint. What do you believe are the biggest opportunities for dealers right now? I believe there is a lot of pent-up demand stemming from persistent supply issues, which have pushed the average age of the American fleet from 11.8 to 12.8 years in just five years. Couple that with product improvements and new innovations, and we’re in the position of having exciting new products at the right time for customers who are coming back into the market. What do you see as the biggest challenges facing our industry, and how can LADA help members navigate them? We have challenges coming from everywhere. Some challenges are obvious, like those threatening our state franchise laws; others are more nuanced while still directly affecting our businesses, such as insurance reform or tax law changes. But for every issue affecting our dealers, LADA helps mobilize its membership with the right advocacy messaging. The easiest way to stay on top of it all is to pay attention to LADA Dealer Alerts! What excites you most about being part of the next generation of leadership in our industry? It’s an opportunity for me to give back to the industry that has given me so much, and at the same time, pay it forward to 8
the next five generations of family owners, who will hopefully choose to stay in our great state! If you had chosen a different path, what do you think you would be doing today? I honestly don’t know. All I’ve ever wanted to do is follow in my father’s and grandfather’s footsteps here at Red River. I’m too squeamish to be a doctor, and I dislike arguing too much to be a lawyer. Coming from North Louisiana, I think I could have ended up in timber or oil and gas, but there’s every chance I would have been a know-it-all barista. What advice would you give to other young people stepping into leadership roles in family dealerships? Get involved in your community! It doesn’t matter if it’s with your church, volunteering with a local charity, coaching youth sports or attending local functions — whatever you’re passionate about! Everything you give back creates a positive impact on your community, and you may find a new customer along the way! Let’s move to a few “lightning round” questions. Favorite TV show or movie to rewatch? I like old-school action movies: anything with Stallone, Schwarzenegger, Van Damme, etc. “National Lampoon’s Christmas Vacation” is required viewing every holiday season. Go-to karaoke song? It depends on how many drinks I’ve had, but probably “Paradise City” by Guns N’ Roses. Your baseball walk-out song? “The Stroke” by Billy Squier for the early innings, and “Funkytown” after the seventh inning stretch. Hidden talent or hobby? I’m a die-hard LSU fan and a proud member of the Second String Tailgaters. If you could have dinner with anyone, past or present, who would it be? First and foremost, Jesus Christ, but it would really be awesome if Rodney Dangerfield came along for a few zingers. What would your family tell us about you? They would say my three favorite things are boats, parades and airshows, and that my ultimate trifecta would be watching an airshow while in a boat parade. 01MK8375 01/26 Louisiana Blue gave me a care manager who works on our behalf. She’s wonderful. With her, you feel like you have somebody in your corner. Right Card. Right Care. Central “ “ 9
THE DEALER’S GUIDE TO NEW “NO TAX ON OVERTIME” RULES Key Tips to Avoid Surprises BY FISHER PHILLIPS Automobile dealerships might be surprised by some important nuances in the “No Tax on Overtime” rules that rolled out nationwide last year, and now is the time to get familiar with the fine print. The new federal tax rules are surrounded by misconceptions and, in many instances, are more complicated for employers in the retail automotive industry. We’ll break it all down and give you the top employer takeaways and next steps. QUICK OVERVIEW The One Big Beautiful Bill Act (OBBBA), which President Trump signed into law last year, includes a new federal income tax deduction related to overtime pay. This new rule (which applies for tax years 2025 through 2028): • Allows an eligible worker to take a deduction on their individual tax return of up to $12,500 (or $25,000 if married filing jointly) in “qualified overtime compensation” they received during the applicable tax year; and • Imposes new filing and information reporting requirements on employers related to such qualified overtime compensation. 10
Under the OBBBA, “qualified overtime compensation” means overtime compensation (excluding qualified tips) paid to an individual that: • Is required by federal law — specifically, under section 7 of the Fair Labor Standards Act (FLSA); and • Exceeds the individual’s “regular rate” as determined by the FLSA. IS “NO TAX ON OVERTIME” A MISNOMER? Sort of. There are plenty of misconceptions floating around related to the OBBBA’s “No Tax on Overtime” provisions. The main one is that all overtime pay provided to any employee is subject to the deduction. As just referenced, only qualified overtime pay is subject to the deduction — i.e., that which is paid in accordance with the FLSA. Employers throughout the country are required to comply with a myriad of federal, state and local laws governing the payment of wages. As a general rule, whenever these laws differ, employers are required to comply with the one that is the most favorable to an employee in any given situation or work week. Several states and localities have developed their own sets of laws governing overtime that are more favorable than the rules set forth in the FLSA. In those states, a significant question is whether the “overtime” paid pursuant to those non-federal laws falls within the deduction. Thankfully, Louisiana is not one of those states with a separate set of overtime laws. Here, employers are governed solely by the FLSA with respect to overtime, minimum wage and recordkeeping requirements. Nevertheless, it is important to ensure that you have a good understanding of what constitutes “overtime” under the FLSA. Just because an employer pays an amount for overtime does not render the payment as overtime “required by” the FLSA. IN THE DEALERSHIP SETTING, WHO IS “REQUIRED” TO RECEIVE OVERTIME UNDER THE FLSA? Dealerships — like other employers — will have several salaried employees who are exempt from overtime (and minimum wage and recordkeeping requirements) under the “white collar” exemptions found in the FLSA. These exemptions apply to those who are paid on a salary basis above the minimum threshold and perform duties that qualify as “executive,” “administrative” and/or “professional.” In a typical dealer group, these exemptions will generally apply to the general manager, department and sub-department heads, office managers, controllers and human resources managers. This is a good time to review your pay practices to make sure that you are keeping time records for and paying overtime to all employees who are non-exempt. 11
Additionally, the FLSA contains several dealer-specific exemptions. These exemptions apply to technicians, service advisors, finance managers, parts counter and warehouse personnel, and sales representatives. There is also an exemption for employees who are paid primarily on a commission basis, provided that they receive at least 1.5 times the federal minimum wage. Unlike the “white collar” exemptions, these are partial and apply only to overtime. Employees in these positions still must be paid at or above the federal minimum wage for all hours worked, and accurate time records must be maintained for them. The remainder of dealership employees are typically non-exempt under the FLSA and must receive overtime for all hours worked in a work week. These individuals generally include porters, receptionists, cashiers, warranty clerks/administrators, detailers, hourly lube techs, BDC representatives, payroll clerks, accounts payable and receivable clerks, and other non-managerial office staff. It is not legal under the FLSA to simply pay these individuals a salary and not compensate them for overtime hours. In addition to violating the FLSA, such a practice could now also create issues under the tax laws as you will be effectively denying your non-exempt employees’ right to the deduction because you failed to pay them overtime. This is a good time to review your pay practices to make sure that you are keeping time records for and paying overtime to all employees who are non-exempt. Only overtime payments provided to your non-exempt staff will qualify for the tax deduction. Consequently, if you elect to pay overtime to an exempt employee when you are not required to do so, there is a good chance that the IRS will reject the deduction when submitted by the employee. EMPLOYER IMPACT AND NEXT STEPS While the OBBBA’s new overtime deduction is a tax benefit for employees filing individual tax returns, it impacts employers in several important ways: • New Filing and Information Reporting Requirements: The OBBBA requires employers to include the total amount of “qualified overtime compensation” on the employee’s Form W-2. Properly tracking, calculating and reporting these amounts may be challenging and burdensome for auto dealerships, particularly those that operate in multiple states. For the 2025 taxable year, the IRS is granting employers penalty relief related to failures to separately report qualified overtime compensation. This relief will not be available for the 2026 tax year or future years, so it is important that dealers correctly calculate and report qualified overtime compensation. • Payroll Withholding: All overtime pay remains subject to payroll taxes and withholding requirements (although employees may opt to adjust their Forms W-4 to reflect any expected deductions for qualified overtime compensation). Dealers must be aware of their withholding obligations in light of the new tax rules for qualified overtime compensation and look out for any employee updates to Forms W-4. Please work with your CPA on this front. • Employee Relations: Some employees might be motivated to work more overtime hours based on the OBBBA’s new overtime deduction, and employers should be prepared to respond to any employee confusion — and perhaps hard feelings — related to any misconceptions surrounding it. As a general rule, you should avoid giving employees any tax planning advice and remind them that the dealership is following IRS rules. CONCLUSION There certainly is much more than meets the eye in connection with the seemingly straightforward “no taxes on overtime” rules. All employers should work with counsel and their certified professional accountants on filing, reporting and withholding issues, as well as employee communications, related to qualified overtime compensation. This is particularly true for auto dealers since industry-specific issues will likely make compliance more challenging. 12
Advertising Compliance for Louisiana Motor Vehicle Dealers A Layered Regulatory Framework BY LAUREN BAILEY, VICE PRESIDENT OF STATE LEGAL AND REGULATORY AFFAIRS, COMPLYAUTO Louisiana dealers advertising vehicles, financing or promotions must comply with overlapping federal and state requirements. To help dealers navigate that framework, ComplyAuto and LADA have published a comprehensive advertising guide tailored to Louisiana. Scan the QR code to see the guide. https://complyauto.com/wp-content/uploads/LADAComplyAuto-Advertising-Compliance-Guide.pdf Louisiana’s primary state-level regulator, the Louisiana Motor Vehicle Commission (LMVC), has codified detailed advertising requirements under Title 46, Part V of the Louisiana Administrative Code. Those rules address dealer identification, price advertising, savings and discount claims, lease disclosures and a list of categorically prohibited statements. A violation of these advertising rules constitutes a violation of the dealer licensing law — with penalties that can include fines and, in serious cases, suspension or revocation of a dealer’s license. Federal obligations run parallel to — and independent of — state law. The Federal Trade Commission (FTC) enforces truth-in-advertising standards across all media under its UDAP authority, while the Truth in Lending Act and Regulation Z, and the Consumer Leasing Act and Regulation M, impose specific disclosure requirements whenever a dealer advertises a monthly payment, a down payment amount or a specific APR. Within that framework, several areas of the FTC and LMVC’s rules are worth particular attention. PRICE ADVERTISING Price advertising carries strict requirements. An advertised price must represent the true cash price available to any member of the buying public and not a price contingent on trade-in, dealer financing or program eligibility. Dealer-installed accessories must be included in the advertised price; the only permissible exclusions are tax, title, license and dealer documentation fees. Advertised savings must be calculated against the vehicle’s actual Monroney sticker price, not an inflated reference figure. Range-based savings claims, such as “save up to $X,” are prohibited outright. And for used vehicles, “was/now” pricing is not permitted under any circumstances. CREDIT AND LEASE ADVERTISING Credit and lease advertising require a separate level of attention. When a lease advertisement states a monthly payment, it must clearly and conspicuously identify the transaction as a lease, including in the audio of any broadcast ad. For finance advertising, any reference to a payment amount, down payment, number of payments or finance charge triggers the obligation to disclose all of those terms together, and if an advertised payment is available only to well-qualified buyers, the ad should say so. 14
DIGITAL ADVERTISING Digital advertising presents its own compliance considerations. The LMVC’s advertising rules apply equally to dealer websites, vehicle listing pages, social media, email campaigns and third-party platforms. The FTC’s .com disclosure guidance requires that all material terms be visible within the ad itself and not accessible only through a link or buried in a footnote. Automated inventory feeds to third-party platforms do not relieve a dealer of responsibility for the accuracy of what is displayed. Social media referral programs that compensate individuals for steering buyers to a dealership raise separate licensing concerns: The LMVC treats such arrangements as payments to unlicensed salespersons, a violation of the dealer licensing law. Louisiana’s advertising rules also contain a list of categorically prohibited statements. Among them: representations guaranteeing credit approval regardless of creditworthiness, superlative claims such as “lowest prices” or “nobody beats our deals” without substantiation, references to dealer cost or invoice, and liquidation or auction language outside of a properly licensed event. These prohibitions exist independently of any deception analysis — using the language is itself a violation. None of this regulatory framework is new, but enforcement interest in dealer advertising — at both the state and federal level — has not diminished. Dealers who treat advertising compliance as a routine part of the ad production process are in a materially better position than those who do not. Lauren Bailey is an attorney focusing on state and federal regulatory compliance. For more information on dealer advertising compliance resources, visit complyauto.com. Don’t Forget Your Dues! Membership dues are still being collected. Your support helps LADA continue advocating for Louisiana dealers and providing valuable industry resources throughout the year. You can pay your membership dues online at lada.org or by mail: Louisiana Automobile Dealers Association 660 Laurel St., Ste. E Baton Rouge, LA 70802 15
HAZARDOUS WASTE DISPOSAL THE HIDDEN COMPLIANCE RISK AT YOUR DEALERSHIP Every day, materials leave your dealership: used absorbents, sludge from floor drains, sanding dust, paint booth filters, spent solvents, aerosol cans, etc. They go into a drum, a tote or a dumpster — and operations move on. But here’s the uncomfortable question: Do you know, with documentation to prove it, whether any of that waste is legally considered hazardous? Because under federal EPA regulations, “not knowing” is not a defense. MOST DEALERS AREN’T TRYING TO CUT CORNERS Dealership leaders are focused on customers, technicians, inventory and profitability. Waste disposal often feels routine — handled the same way it’s been handled for years. The risk isn’t intentional wrongdoing. It’s assumption. Many common dealership waste streams can qualify as hazardous under federal law. And unless a proper hazardous waste determination has been completed and documented, simply throwing that material in the trash may be considered illegal disposal. Regulators don’t ask whether the waste looked hazardous. They ask for your documentation. THE WASTE STREAMS THAT CREATE RISK You don’t need a large operation to generate potentially hazardous waste. Common dealership waste streams include: • Certain fuels, oils and shop chemicals • Used absorbents and spill cleanup materials • Aerosol cans • Sludge from floor drains or oil/water separators • Shop rags • Lithium-Ion batteries The Rules Dealerships Can’t Afford to Ignore BY ZACH PUCILLO CSP, CHMM, REGULATORY DIRECTOR, KPA 16
• Paint booth filters and overspray residue • Sanding dust and body filler debris • Waste thinners and leftover coatings • Still bottoms from solvent recyclers Automotive coatings and chemicals often contain metals such as chromium, cadmium, lead or barium. Many solvents are ignitable. Even when materials appear dry, those contaminants may still be present. If those metals or chemicals can leach into groundwater under landfill conditions, the waste may meet the EPA’s definition of hazardous. At that point, it cannot legally go into the dumpster. WHAT AN INSPECTION CAN REALLY LOOK LIKE During inspections and investigations, regulators may physically examine waste handling practices. In some cases, the EPA has seized facility dumpsters, had their contents dumped out and gone through the debris to identify potentially hazardous waste that was improperly discarded. Imagine that happening in front of your team — or worse, in view of customers. When inspectors find questionable materials, the next request is immediate: “Show us your hazardous waste determination documentation.” If it doesn’t exist, the exposure is significant. HOW THE EPA MAKES THE DETERMINATION Under the Resource Conservation and Recovery Act (RCRA), a waste is hazardous if it is listed by the EPA or exhibits one of four characteristics: • Ignitability • Corrosivity • Reactivity • Toxicity The most common issue in dealership operations is the toxicity characteristic. The EPA-approved test used to evaluate this is the Toxicity Characteristic Leaching Procedure (TCLP). This laboratory analysis simulates landfill conditions to determine whether metals or chemicals would leach above regulatory thresholds. If the test exceeds those limits, the waste must be: • Properly labeled and stored • Managed within regulated time limits • Transported by a licensed hazardous waste hauler • Shipped with a hazardous waste manifest • Disposed of at a permitted facility That process is very different — and far more regulated — than routine trash disposal. WHY “WE’VE ALWAYS DONE IT THIS WAY” IS RISKY The EPA allows waste determinations to be made using generator knowledge or analytical testing. In theory, you can rely on Safety Data Sheets (SDS). In reality, dealership waste streams are rarely single products. They are mixtures — layers of coatings, cleaners, fluids and residues accumulated over time. SDS documents describe raw materials. They do not describe the final waste sitting in your dumpster. Facilities across the country have faced substantial penalties not because they intended to violate the law, but because they failed to properly evaluate and document their waste streams. The most common violation isn’t deliberate. It’s failing to determine. WHAT SMART DEALERS ARE DOING Proactive dealerships are taking a disciplined approach: 1. Inventory every waste stream — not just liquids. 2. Confirm there is documented support for how each waste was classified. 3. Conduct TCLP testing where appropriate to obtain defensible data. 4. Maintain organized records of lab results, waste profiles and manifests. 5. Reevaluate when processes change, including new paint systems, chemical vendors or EV service offerings. This isn’t about creating unnecessary work. It’s about eliminating uncertainty — before an inspection eliminates it for you. THE BOTTOM LINE You work too hard building your dealership to let something sitting in a dumpster create regulatory exposure. A documented hazardous waste determination is more than paperwork. It protects your dealership from substantial penalties. It protects your operations from disruption. And it protects your reputation in the community. If you don’t know what’s in your dumpster, now is the time to find out — before someone else does. 17
Protect Your Dealership’s Margins A Guide to Visa’s CEDP Rules BY PRIORITY DMS Auto dealers are constantly seeking meaningful ways to protect margins, optimize operational costs and streamline B2B transactions. If your dealership accepts business and commercial credit cards — whether for fleet sales, bulk OEM parts distribution, warranty payments or commercial service accounts — a critical Visa rule change is reshaping how commercial card transactions are processed and impacting your processing costs and bottom line. Visa launched the Commercial Enhanced Data Program (CEDP) in April 2025, which fundamentally changes how commercial card transactions are processed and categorized. As Visa completes the final phase of the rollout in April 2026, here is everything your dealership needs to know to avoid rising card fees and maintain profitability. WHAT IS VISA CEDP? Historically, merchants who processed business, corporate or government credit cards could qualify for lower interchange rates by voluntarily submitting Level 2 data (such as sales tax) or Level 3 data (detailed line-item information). The CEDP consolidates these old incentive programs into a single, stricter framework designed to promote high-quality, accurate data for commercial transactions. Visa is strictly enforcing this program, actively examining Level 3 data and replacing previous incentive structures. Crucially, on April 18, 2026, Visa officially discontinued all standard Level 2 programs, with fleet and fuel card programs continuing under their own data requirements. Going forward, dealerships must submit invoice-quality Level 3 data to qualify for the most favorable interchange rates. THE DATA REQUIREMENT: WHAT DEALERSHIPS MUST PROVIDE Under CEDP, simply passing along the sales tax amount is no longer enough. Your systems must now capture and transmit comprehensive Level 3 line-item details. For a dealership’s parts or service department, this means your payment gateway needs to process specific data points, such as: • Item descriptions (e.g., specific part names or service descriptions) • Item quantities and unit of measure • Freight and shipping amounts • Unit costs and line-item totals • Item discount amounts, commodity codes and duty amounts THE FINANCIAL IMPACT: RISKS AND REWARDS CEDP is not just a regulatory update; it is a revenue-impacting event. Visa uses machine learning to validate the quality of the data your dealership submits, categorizing your business as “verified” or “non-verified” after a review period of up to 30 days. If your dealership fails to provide complete data, or if Visa detects ongoing quality issues — such as fields left blank or overly generic product descriptions — you risk losing your verified status. Transactions lacking verified enhanced 18
data will default into higher-cost fee brackets, resulting in 0.5% to 1% higher interchange fees. However, there is a significant upside for verified merchants. While a 0.05% participation fee is applied to all CEDP transactions, the overall interchange rates for verified data have been reduced by roughly 7-10%. Large Ticket purchases see the most significant rate reductions, which is incredibly beneficial for wholesale auto transactions. For instance, under CEDP, the Corporate Large Ticket and Purchasing Large Ticket rates drop from 1.45% + $35 down to 1.30% + $35. HOW TO PREPARE YOUR DEALERSHIP TODAY Following Visa’s April 2026 Level 2 sunset, dealerships must take action to protect margins. Here is a step-by-step guide: 1. Audit Your Data Flows: Verify that your point-of-sale (POS), dealership management system (DMS) and payment gateway can capture all required Level 3 fields and transmit them accurately. 2. Automate Your Compliance: Relying on staff to manually enter line-item data can lead to validation errors. Modern payment gateways can automatically enrich Level 3 data, filling in missing invoice numbers, tax and remittance details to ensure full compliance before the transaction is submitted. Real-time compliance tools and built-in alerts help catch missing data instantly. 3. Educate Your Team: Train your accounting, finance and fixed-operations staff on the importance of quality data and how to spot errors. Visa monitors this status monthly, so maintaining high data quality is essential to keeping your verified status. 4. Re-Evaluate Surcharging: With the complexities of CEDP and the baseline costs of accepting business credit cards, this regulatory shift provides a compelling reason for dealerships to explore compliant surcharging programs, where permitted by law and card brand rules, to help offset B2B processing fees. Accepting commercial cards is vital to your dealership’s operations, whether you act as a parts distributor, wholesaler or fleet servicer. By upgrading your payment technology and ensuring CEDP compliance, you can avoid unexpected penalties and secure the lowest possible interchange rates for your business. Visit prioritycommerce.com to learn more. 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 19
How the One Big Beautiful Bill Act Changes Overtime Reporting for Auto Dealerships in 2026 BY HANNIS T. BOURGEOIS LLP The automotive dealership industry operates with complex employee classifications and varied state-level compliance requirements, making tax compliance both critical and challenging. With the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, auto dealerships face significant new reporting requirements that will fundamentally change how they track and report overtime compensation this year. With transitional penalty relief having ended, it is now time for dealerships to adapt their systems for mandatory compliance. The law introduces a federal income tax deduction allowing employees to exclude up to $12,500 of qualified overtime compensation from their taxable income, or $25,000 for joint filers. For auto dealerships with employees who regularly work overtime, this change carries substantial operational implications and unique compliance challenges. 20
WHAT AUTO DEALERSHIPS MUST DO TO COMPLY The key challenge lies in understanding what qualifies. Only overtime compensation required by Section 7 of the Fair Labor Standards Act counts as “qualified overtime compensation” under the OBBBA. This creates significant complications for dealerships, where many employees, including technicians, service advisors, salespeople, parts employees, and finance personnel, may qualify for FLSA exemptions but are treated as nonexempt under state law or employer policy. When employees who are exempt under federal law but nonexempt under state law receive overtime pay, that compensation may not qualify for the federal tax deduction, even though the employee receives and depends on it. This distinction can create employee relations challenges when workers discover that certain overtime hours don’t qualify for the tax benefit they expected. In practice, dealerships must be able to distinguish between overtime that qualifies under federal law and overtime generated for other reasons. For example, overtime paid under the FLSA for hours worked beyond 40 in a workweek will qualify as “qualified overtime compensation.” By contrast, overtime triggered by state daily‑hour rules (such as overtime after 8 hours in a day), premium pay required by dealership policy, and overtime paid to employees who are exempt under federal law but treated as nonexempt under state law do not qualify. Payroll systems must be able to separately track these categories to ensure accurate 2026 W‑2 reporting. Beginning with the current tax year, auto dealerships must separately account for and report qualified overtime compensation on employee W‑2 forms. The IRS will impose information-reporting penalties for noncompliance, making system readiness essential. Dealerships should immediately assess whether their current payroll platforms can capture this data, engage their payroll providers to confirm that software updates are in progress, audit employee classifications under the FLSA, and develop internal protocols to distinguish between FLSA‑required overtime and other overtime payments. At Hannis T. Bourgeois, we understand the unique challenges auto dealerships face when navigating complex tax and regulatory changes. Our team works with automobile dealership clients to address industry-specific compliance requirements and develop practical solutions tailored to your business operations. If you have questions about how recent regulatory changes may impact your business, we’re here to help. Call us at (225) 928‑4770 or visit htbcpa.com to connect with one of our professionals. Since 1924 Your Business Is Our Business Glen LaBorde, CPA, CGMA Partner, Audit + Assurance Providing Dealers Across Louisiana with: Audit + Assurance Consulting Outsourced Accounting Tax Planning + Preparation Wealth Management PROUD MEMBERS htbcpa.com 21
WED JUNE 17-21 LADA Annual Convention Grand Hyatt Vail Resort and Spa Vail, CO MON AUGUST 4-13 Legislative Roadshow New Orleans, Baton Rouge, Lafayette, Lake Charles, Shreveport TUE OCTOBER 27 Charity Golf Tournament The University Club Baton Rouge, LA 2026 Events Spotlight 22
DON’T STRAINYOURSELF COMING UPWITH SAFETYTOPICS IN 2026! According to the National Council on Compensation Insurance (NCCI) data, Sprains and Strains are the leading cause of lost-time workers’ compensation claims. Their data from 2022 – 2023 states that the average total cost of a strain related workers’ compensation claim exceeds $30,000. Many of these claims increase significantly when surgery, extended physical therapy, or prolonged time away from work is required. In automotive dealerships, Strain Injuries consistently rank among the highest in both frequency and overall cost. Daily tasks such as lifting tires and parts, working in awkward positions, and repetitive motion tasks place employees at increased risk of back, shoulder, and soft tissue injuries. Louisiana Dealers should make sure they hold regular safety meetings with their employees. It is strongly encouraged that Overexertion / Strain Prevention (i.e., Material Handling) be a topic among these safety meetings. The Louisiana Compensation Act requires employers with 15 or more employees to have a written safety program that includes Quarterly Safety Meetings with a record showing the topics discussed, date of the meeting, and the names of the persons attending. AVOID OSHA FINES IN 2026! The number one OSHA citation for New Car Dealers is Hazard Communication (HAZCOM) Standard. OSHA’s HAZCOM Standard requires employees to have access to up-to-date Safety Data Sheets (SDS) for all hazardous chemicals used in the workplace. The standard also requires hazardous chemicals to be labeled so employees understand the risks and know how to protect themselves. This requirement applies to original manufacturer containers and secondary containers. Secondary containers must be labeled if the chemical is used by multiple employees or if the employee transferring the chemical does not use it immediately. Labels are only exempt in limited circumstances, such as when one employee transfers, uses, and keeps the container for the entire shift. While secondary container labels do not need as much detail as the original manufacturer container, they must be accompanied by supporting Safety Data Sheets (SDS). RMS IS YOUR PARTNER! Risk Management Services, LLC (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. Going beyond the basics of Safety & Health Services, the RMS Loss Prevention Team is available to help guide your dealership on OSHA compliance. This fee based extended safety & health service can be tailored to meet your dealership’s needs, including SDS online platform management, on-site safety meetings, written safety plans, OSHA reporting & Recordkeeping, and much more! If your dealership has questions about joining the LADA-SIF, or would like more information on Extended Health & Safety Services please feel free to contact Jean Robért at 1-800-351-RISK (7475) or by email at JRobert@RMSLA.com.
157,785 160,063 171,156 165,800 2023 Actual 2024 Actual 2025 Actual 2026 Forecast First Quarter 2026 Released April 2026 Market Summary Forecast for State New Retail Light Vehicle Registrations UP 4.2% vs. ‘22 UP 1.4% vs. ‘23 UP 6.9% vs. ‘24 DOWN 3.1% vs. ‘25 Louisiana Auto Outlook Coverage of the Louisiana new vehicle market TM Domestics consist of vehicles sold by GM, Ford, Stellantis (excluding Alfa Romeo and FIAT), Tesla, Rivian, and Lucid. Other Asian includes Genesis, Hyundai, Kia, and VinFast. Data sourced from Experian Automotive. The graph above shows annual new retail light vehicle registrations from 2023 to 2025, and Auto Outlook’s projection for 2026. Historical data sourced from Experian Automotive. YTD '25 YTD '26 % Chg. Mkt. Share thru Mar. thru Mar. '25 to '26 YTD '26 TOTAL 40,837 38,878 -4.8% Car 5,807 5,713 -1.6% 14.7% Light Truck 35,030 33,165 -5.3% 85.3% Domestic 20,734 18,764 -9.5% 48.3% European 2,819 2,227 -21.0% 5.7% Japanese 13,009 13,047 0.3% 33.6% Other Asian 4,275 4,840 13.2% 12.4% FORECAST State New Vehicle Market Predicted to Decline 3.1% in 2026 Key factors boosting new vehicle sales Key factors holding back new vehicle sales Key Trends in Louisiana Market » State new retail light vehicle registrations are predicted to decline 3.1% for all of this year versus 2025. » Registrations in the first quarter of 2026 slipped to 38,878 units, off by 4.8% from a year earlier and below the previous five year average (see page 2). The U.S. market declined 8.5%. » BEV and PHEV registrations fell by more than 15% in the first quarter of this year (see page 6). BEV market share fell to 1.8%. » Among top 25 sellers, Nissan, Kia, Toyota, Tesla, Lexus, Genesis, and Lincoln were the only brands to have increases in registrations so far this year (see page 5). Pent up demand. New vehicle sales since the onset of the pandemic have been below average. And the Great Recession of 2009 was called great for a reason: it took nearly seven years for sales to return to normal levels. Due to this extended period of below-average sales, the vehicle fleet is aging (see below). Vehicle purchases have been postponed, which will provide support to the market. Consumers have incentive to upgrade. Average age of vehicles in operation has reached an all-time high. No question, modern vehicles are built better and last longer, but today’s models offer many upgraded features vs. the average 12.5-year-old car. Passive and active safety technology, advanced infotainment options, and alternative powertrains are just a few examples. Many vehicle owners have a strong incentive to upgrade. Declining interest rates? Prior to the Iran war, the prospects were good for interest rates to fall during 2026. But the war and subsequent increases in oil and gasoline prices have brought that into question. Lower finance rates are critical for improving affordability, which is the primary negative for the market. New vehicle affordability. Finance costs remain elevated due to high interest rates, vehicle transaction prices are hovering around $50,000, and income growth is barely keeping pace with inflation. Manufacturers can alleviate price pressures by reducing content levels and offering more affordable models, but these adjustments take time. Tariffs. Higher tariffs will negatively impact new vehicle sales in 2026. Up until now, manufacturers and dealers have largely absorbed the costs, but eventually, consumers will feel the effects. Tariffs also lead to increasing inflation in the economy, which reduces disposable household income. Uncertainty. Forecasting auto sales is always challenging, but the past 15 months have been particularly unpredictable. Unforeseen events like fluctuating tariff rates, the phaseout of BEV tax credits, the war in Iran, and rising gasoline prices have all thrown uncertainty into the outlook. Largely as a result of this ongoing tumult, consumer confidence has plummeted to near record-low levels. Heightened uncertainty makes people reluctant to make big-ticket purchases, like automobiles. 24
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