NCDA MEMBERSHIP Take Full Advantage of Your Benefits FALL 2024 OFFICIAL PUBLICATION OF THE NEW CAR DEALERS ASSOCIATION SAN DIEGO COUNTY
Business Transactions • Buy-Sell Agreements • DMV, BAR, and other governmental approvals • Lender flooring and capital loan agreements • Entity formation and structure • Shareholder Agreements • Manufacturer approvals and relations • NMV non-profit association representation Estate Planning • Succession planning for businesses • Trust Agreements including lifetime benefit trusts • Gift and Estate Tax planning Tax • Property Tax planning, audits, and appeals • Federal estate and gift tax controversy audits • EDD Audits BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICES FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations 3737 Birch Street, Suite 400, Newport Beach, California 92660 | PH: (949) 608-6900 | ferruzzo.com Business Litigation • Consumer Legal Remedies Act lawsuits • Sales and Service Agreements • Disputes before the CA New Motor Vehicle Board • Consumer claims regarding the sale of automobiles • Manufacturer audit disputes • Hearings before the AQMD, RWQC and OSHA Real Estate • Dealership site acquisition and dispositions • Lease agreements • Lender Opinion Letters Employment Practices • Wage and hour class action lawsuits • Private Attorneys General Act (PAGA) claims • Arbitration Agreements • Employer Handbooks and Employer Compliance Procedures Ferruzzo & Ferruzzo, LLP began providing legal representation to new car and truck dealers over four decades ago. Over the course of that time, one of the central goals of the firm has been to remain rooted in our client relationships. With the strength of over 25 attorneys, we provide a spectrum of legal services to support every aspect of running and owning your new car and/or truck dealership. We have practice groups in each area of the law that service the needs of you and your dealership.
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Bob Ludwig, robert.ludwig@bofa.com business.bofa.com/dealer ©2023 Bank of America Corporation. All rights reserved. DFS-699-AD 5949042 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.
©2024 New Car Dealers Association® San Diego County (NCDA) | The newsLINK Group LLC. All rights reserved. San Diego Dealer is published four times each year by The newsLINK Group LLC for the NCDA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the NCDA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. San Diego Dealer is a collective work, and as such, some articles are submitted by authors who are independent of the NCDA. While San Diego Dealer encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CHAIRMAN JOHN SEGAL........................... DISTRICT 3 VICE CHAIRMAN ERIC TRACY........................... DISTRICT 1 SECRETARY/TREASURER SCOTT KIEFNER..................... DISTRICT 6 PAST CHAIRMAN CHRIS GEORGE...................... DISTRICT 4 BOARD MEMBERS JENIFER BALL......................... DISTRICT 6 ANTHONY BENFATTI............ DISTRICT 1 MATT CRANDALL.................. DISTRICT 2 PAUL DYKE............................. DISTRICT 4 BANU GREWAL...................... DISTRICT 3 GREG KAMINSKY................... DISTRICT 4 JASON MOSSY........................ DISTRICT 5 MANNY SEDANO................... DISTRICT 5 JOHNNY SIEPKER................... DISTRICT 2 NCDA STAFF SCOTT WEBB PRESIDENT DIANA SILVA ACCOUNTING AND ADMINISTRATION MANAGER TYLER GRAY MARKETING & OPERATIONS MANAGER CLAUDIA OLVERA MEETING AND FACILITIES COORDINATOR ROBERT HEINTZ CALIFORNIA SALES TRAINING ACADEMY INSTRUCTOR Contents 10065 Mesa Ridge Ct. San Diego, CA 92121 Tel: (858) 550-0080 Fax: (858) 550-9537 ncda.com 8 14 Publication 12 | 2023-2024 Issue 4 | Fall 6 Chairman’s Letter By John Segal, Chairman, New Car Dealers Association 8 A Guide to NCDA Member Benefits Be Sure To Take Advantage of All of Your Available Benefits 12 Ways To Improve Safety at the Workplace By Sam Celly, BChE, MChE, JD, CSP, Celly Services Inc. 14 New Law Requires Most California Employers to Develop a Workplace Violence Prevention Program Your 4-Step Compliance Plan By Fisher Phillips 16 Personal Social Media Posts Can Create Hostile Work Environment By Jennifer Woo Burns, Of Counsel, Scali Rasmussen, PC ASK ALISON 18 How To Help Attract and Retain Top Talent for Your Dealership By Alison McCallum, EPIC Insurance Brokers and Consultants 20 2025 NADA Show January 23-26, New Orleans 23 San Diego Auto Outlook Third Quarter 2024 30 Auto Technology Career Day San Diego February 28 SAVE THE DATE 31 NCDA Golf Tournament + Annual Meeting & Luncheon Wednesday, May 7, 2025 4 SAN DIEGO DEALER
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Chairman’s Letter By John Segal, Chairman, New Car Dealers Association As you read this, the 2024 federal, state and local elections will have concluded, and I want to thank all of the dealers who supported the association’s efforts by donating to the NCDA’s Political Action Committee (NCDA PAC). Those donations help ensure that we have an ongoing voice, both in terms of influencing ballot measures and with legislators who understand how critical the new car dealer industry is to our local, state and national economies. Our industry continues to shine brightly as an economic engine that creates a multitude of jobs that aren’t exported overseas, provides access to health benefits for employees and their families, and generates significant tax revenue for local and state governments. The NCDA PAC is just one of many important benefits available to you as an NCDA member. As chairman of the New Car Dealers Association, I am often reminded of the powerful resources and benefits the association provides. I urge all dealers to be proactive with your NCDA membership by taking advantage of the NCDA’s legal and labor resources, utilizing the outstanding meeting facilities, participating in NCDA training and networking events, and supporting our world-class San Diego International Auto Show, which remains the primary funding source for the NCDA. Learn more about all of the benefits available to you in this issue, and don’t hesitate to reach out to NCDA President Scott Webb and his staff, who always stand ready to assist you and your dealership team. Speaking of the auto show, it won’t be long before the San Diego Convention Center once again becomes home to the San Diego International Auto Show (Dec. 28-Jan. 1). I strongly encourage every dealer to make time to come down and see how the brand(s) you sell are represented. Spend an hour or two on the show floor and you can’t help but come away convinced that the auto show is the most effective opportunity we have to stimulate new car sales and influence purchase decisions. Look for information about special dealer access options in the coming weeks. In closing, I would like to wish you all a very happy holiday season and a very safe and prosperous new year in 2025. Thank you for allowing me to serve as your San Diego New Car Dealers Association chairman. Sincerely, John Segal 6 SAN DIEGO DEALER
Get compliant. Protect your bottom line. We make it simple for dealerships to navigate compliance With a combined 95 years of environmental health and safety compliance experience in automotive operations across the country, our Certified Safety Professionals (CSP) can help you reduce risk and increase profits. Permits and registrations — BAR, EPA, DIR Specialized employee training upon request from your dealership Online training program (elearning) Environmental Protection Agency compliance and environmental risk management DOT hazmat shipping certification Workplace health and safety compliance Environmental health and safety training Why choose us? Training We’ll help find a solution that works for you LET’S TALK! www.cellyservices.com 562.704.4000
A GUIDE TO NCDA MEMBER BENEFITS Meeting, Conference and Training Space The NCDA headquarters in Mira Mesa offers over 20,000 square feet of state‑of-the-art meeting and training spaces. Multiple conference rooms equipped with the latest audio/visual presentation equipment can accommodate groups of 30+. The NCDA building also features two classroom-style rooms that can seat 80+, both with wired and wireless audio/ visual equipment. Dealers and dealer groups who are planning sales, management, training and/or advertising meetings are encouraged to utilize our facilities free of charge, representing significant financial savings compared to meeting at hotels or similar conference or training facilities. Associations consist of people or businesses that share common problems, needs and goals. They work together to find solutions, meet those needs and provide valuable resources to enhance members’ success. And the New Car Dealers Association® San Diego County (NCDA) is no different. Comprised of nearly 120 new car dealers located throughout San Diego County, our mission is to provide programs and services responsive to the needs of those dealer members. Those of us who work directly for the NCDA are immersed in the daily implementation of member benefits, so it’s important for us to remember that periodically we may need to remind our members about the valuable resources available to them as NCDA members. To that end, the following article highlights the breadth of the valuable benefits available to dealers to help each dealer maximize utilization of those benefits. Legal and Compliance Resources NCDA members enjoy free legal and compliance resources from valued partners such as Fisher Phillips, Celly Services and Scali Rasmussen. The NCDA has established consultative relationships with these legal and compliance resources to provide timely assistance to dealers. NCDA dealer members can call any of these companies free of charge if their question can be answered over the phone during a single phone call. If more is involved, they will set up a business relationship with your dealership. All three businesses also provide the NCDA with valuable guidance on an ongoing basis that we share with our members using our various communication channels, as well as at in-person and online seminars. 8 SAN DIEGO DEALER
Management/ Dealer Training The NCDA hosts a variety of important training seminars for dealers. Whether it’s learning about new laws, ensuring compliance with safety and environmental regulations, or finding new ways to improve employee relations, members learn from NCDA partners and industry experts. California Sales Training Academy The NCDA’s California Sales Training Academy (CSTA) has been graduating top-performing salespeople for more than 30 years. The CSTA’s ongoing marketing campaign draws new and eager talent to our industry by way of this unique training and job placement program. The CSTA course is offered for free to students and promotes professionalism in the retail automotive business with an emphasis on product knowledge, ethical behavior and customer service. At the conclusion of the four-day course, CSTA graduates have the knowledge to present and sell a car professionally, create referral business and develop a prospect base. Not only do CSTA dealer partners have the opportunity to hire new sales recruits enrolled in NCDA outreach, but they also have the possibility to send new hires to be trained on an ongoing basis. San Diego International Auto Show The San Diego International Auto Show® is owned and produced by the NCDA to the benefit of all members. Dealers, LMAs and manufacturers have this unique, once-a-year opportunity to showcase the latest and greatest that our industry has to offer, stimulating automobile sales throughout the county. Not only is the auto show the most effective marketing opportunity of the year for brands to engage tens of thousands of car buyers and influence purchase decisions, but net revenue from the show is also the primary funding source that enables the NCDA to provide all of the benefits enjoyed by its members. It’s Where the Cars are the Stars.® NCDA.COM 9
Automotive Technician Recruiting The NCDA is actively involved in efforts to increase the number of high school and community college students who choose to pursue professional careers as automotive technicians at new car dealers. These efforts include cohosting Automotive Technology Career Days in cooperation with the CNCDA Foundation, participating in the local SDTECHS Collaborative (SDTechs.org) and gaining local support for the CNCDA Foundation’s Auto Tech Scholarship Program. Legislative Representation The NCDA continuously monitors local, state and national legislation and regulatory activities which may impact new car dealers and their operations. Regular visits are made to Sacramento to discuss pertinent issues with CNCDA staff and coordinate lobbying efforts with state and local lawmakers. Each year, the NCDA coordinates dealer meetings in Sacramento in conjunction with Dealer Day. The NCDA also invites key legislators to meet with the board of directors to enhance relationships and communications. Face-to-face meetings with legislators are a powerful tool in representing dealers’ interests and viewpoints on pending legislation. Recent legislative victories influenced by this collaborate effort include the passing of historic PAGA reforms and defeat of proposed legislation that would have limited the speed of vehicles in California to 10 mph over the speed limit. Political Action Committee The NCDA PAC assists legislative candidates who support businesses and understand the significant, positive impact dealers have on San Diego County’s economy. NCDA’s PAC also provides support for or against ballot measures that may impact dealership operations. In 2024, this included opposition to ballot measures to increase county and city sales taxes that add significant cost to new and used vehicle purchases. Networking Events The NCDA’s annual golf tournament is a once‑a‑year opportunity for dealer members to spend a day networking with their fellow colleagues, NCDA’s associate member partners and tournament sponsors. Held at the top-rated Maderas Golf Club, the NCDA golf tournament also incorporates our annual meeting and luncheon, where we announce results of our annual board of directors election, introduce our incoming board chairman and honor our outgoing chairman. 10 SAN DIEGO DEALER
Sales and Economic Impact Reports Each month, the NCDA distributes San Diego Auto Outlook, which provides dealer members with a comprehensive report on new vehicle registrations by brand, sales trends and projections throughout the county. Quarterly reports take a deeper dive into the data, providing insights about EV adoption, sales trends for pre-owned vehicles, breakdowns by zip code and more. The annual Economic Impact Report highlights the significant positive monetary impact dealers have on San Diego’s economy, including employment, tax revenue, advertising spending, purchasing and other important statistics. Reports are distributed to local, state and federal elected officials as a reminder of the extraordinary contributions NCDA dealer members present to the region’s economic health. Communication Tools The NCDA keeps dealers informed through a variety of channels, including San Diego Dealer — the award-winning quarterly magazine — email dealer alerts and advisories, and targeted social media communication via Facebook and LinkedIn. Consumers can use the NCDA website to find a conveniently located dealer, by location or brand. The NCDA also publishes a membership directory annually to facilitate easy communication among dealers and associate members. Retirement Program Dealer members have access to high-quality 401(k) plans with group pricing based on the strength of the entire NADA Retirement Program administered by Empower Retirement. ABOUT THE NCDA Founded more than 100 years ago, the New Car Dealers Association® San Diego represents franchised new car and truck dealers throughout San Diego County. The NCDA provides programs and services that are designed to meet the business needs of its dealer members while providing education and training, events and an international auto show, as well as legislative advocacy on issues affecting the automobile industry to continue growing members’ significant economic impact on the San Diego County economy. Learn more about member benefits by scanning the QR code. https://www.ncda.com/member-services/ NCDA.COM 11
Ways To Improve Safety at the Workplace By Sam Celly, BChE, MChE, JD, CSP, Celly Services Inc. Many dealers think that safety inspection and correction of hazards constitute an effective safety program, or that compliance with OSHA regulations is an effective means to gauge safety. Nothing could be farther from the truth. In nearly 40 years of experience with dealers in the safety arena, I have found these principles to be the most effective means to reduce injuries at the workplace and effectively reduce premiums. Get management on board. There is an old adage: The safety train is not leaving the station unless the top management is on board. Management on the safety committee does not adjust the guards on the grinder. They are effective in delegating, allocating resources and monitoring the progress of the tasks set out for line managers. The liability from a mishap and the increased premiums and costs will hit the manager’s paycheck more than anyone else’s. Keeping an eye out helps reduce liability and keeps cash in the till. The general manager and senior management should be on the invite list for all safety meetings and must review all safety reports. Actively attending meetings keeps you informed of compliance needs and status so you can monitor and delegate as necessary. If you can’t measure it, you can’t manage it! Investigate accidents and take corrective actions. Einstein once said that doing the same thing over and over again and expecting different results is the definition of insanity. Facilities have employee back injuries and they send employees to treatment, rehab, physical therapy, etc. over and over again, but never investigate to find the root cause of the injury. In short, each accident must be thoroughly investigated and corrective actions taken. Get all departments involved. Lessons learned by one should be shared with other departments, which is even better since everyone is in one corporate setting. An accident investigation form is available on our portal and should be shared with all committee members. Last and not the least, accident investigation is a statutory requirement under the CA IIPP. Focus on case management. Once an accident happens, open the lines of communication with the claim handler at the insurance company, follow-up with the broker and monitor the treatment to create an effective environment and keep claims under control. Ensuring that injured person is receiving good medical treatment and assistance from the insurance company is one of the key ways of keeping cases out of the hands of lawyers. It is a forgone conclusion that once a case reaches lawyers, wrong or right, your case management expenses will escalate. Make safety everyone’s business. Everyone should be involved. This means from the porter to the president of the corporation. Safety should be percolating through the corporate culture at all times, and not merely something you do when you meet an outside consultant and review a memo or sign on a sheet of paper in exchange for a sheet of paper. At employee safety meetings, discuss near misses, accidents, training topics and things that can raise everyone’s safety awareness and action antennas. Do not create prejudice against the employee involved in an accident. Rather, discuss the causes and possible ways to eliminate such accidents in the 12 SAN DIEGO DEALER
future. Monthly safety topics are emailed by us to the management team. Safety meetings also provide a great avenue for employees to participate and voice their concerns. Employees are often the ones who are most knowledgeable on safety matters. Have patience. Behavioral change takes time. A scientific study published 45 years ago studied monkeys’ behavior when seeking a reward and getting a cold shower instead. In one experiment, five monkeys were put in a cage with a banana on top of a ladder. When one monkey went up the ladder, a cold shower came down on all the monkeys. Then a new monkey was put in the cage (replacing an existing monkey), and when this new monkey decided to go up the ladder, the other monkeys beat him up and prevented him from going for the banana. This sequence was repeated until all five monkeys, who had never received a cold shower, were in the cage. When a new monkey (who had never been part of the experiment), was placed in cage and decided to go up the ladder, the other monkeys beat him up even though none had ever received the cold shower. Such is the experiment and thesis of “herd mentality.” So shepherding your troops to work in a safe manner takes time, direction and the proverbial cold shower at times! Conduct background checks when hiring. Conducting background checks for new applicants is considered one of the most efficient ways to weed out possible 3F (fraudulent, fictitious or frivolous) claims. A phone call for an investigation to the previous employer’s HR manager usually releases the same information as you give out: not much. Background investigations should be conducted within limits established by law. The limits vary across states. Have the hiring department manager call his/her equivalent at the applicant’s previous employer. Acquaintances, past co-workers and friends are likely to release more information than HR representatives with a canned set of answers. DISCLAIMER: The contents of this newsletter are for informational purposes only and are not to be considered as legal advice. Employers must consult their lawyer for legal matters and EPA/OSHA consultants for matters related to environmental health and safety. The article was authored by Sam Celly of Celly Services Inc., who has been helping automobile dealers across the United States comply with EPA and OSHA regulations for over 38 years. Sam is a certified safety professional (No. 16515) certified by the National Board of Certified Safety Professionals. Sam received his BE (1984) and MS (1986) in chemical engineering, followed by a J.D. from Southwestern University School of Law (1997). Sam is a member of the American Chemical Society (No. 31176063), American Industrial Hygiene Association (No. 124715) and National Association of Dealer Counsel (NADC). Sam also serves on the Board of Orange County American Industrial Hygiene Association and on California Industrial Hygiene Council (CIHC). Our newsletters can be accessed at www.epaoshablog.com. Your comments/questions are always welcome. Please send them to sam@cellyservices.com. • Labor Relations • Employee handbooks • Employment Law Counseling and Litigation • HR Policies and procedures • Independent contractor issues • OSHA Compliance and defense • Purchasing or selling a dealership • Staffing and contingent workers • Workers’ Compensation • Wage and hour law A driving force in labor and employment law for more than 70 years. Fisher Phillips brings valuable legal counsel to NCDA members. Our labor and employment law firm offers auto dealerships the following services: fisherphillips.com 4747 Executive Drive | Suite 1000 | San Diego, CA 92121 NCDA.COM 13
New Law Requires Most California Employers to Develop a Workplace Violence Prevention Program Your 4-Step Compliance Plan By Fisher Phillips A new law that recently took effect requires most California employers to develop a workplace violence prevention program, and if you aren’t familiar with your new obligations, now is the perfect time for you to ensure your organization is up to speed. The law, which took effect on July 1, requires each employer to create and implement a written Workplace Violence Prevention Plan (WVPP), train employees and supervisors on workplace violence matters, create and maintain a violence incident log, and keep records of all training and violent workplace incidents that occur. Here is your fourstep compliance plan to make sure you are following the new law. QUICK BACKGROUND Although the new law might seem burdensome, you can take some solace knowing that the final version of the law scaled back from the more challenging requirements. California lawmakers originally pushed an aggressive legislative proposal that would have required almost every employer in the state to comply with a broad and comprehensive workplace violence prevention standard developed with healthcare employers in mind. Thankfully for employers, SB 553 was amended late in the legislative session to essentially codify a separate proposal that Cal/OSHA had already been working on and remove some of the more controversial and burdensome requirements. As a result, many business groups dropped their opposition to the bill, and Gov. Newsom signed it on Sept. 30, 2023. But the new law still imposes significant obligations on almost all non-healthcare California employers that took effect on July 1. Here’s what you need to know about the specific requirements and the four steps you should take to comply: 1. Create a Workplace Violence Prevention Plan The Workplace Violence Prevention Plan must be in writing and be easily accessible to employees. It must identify who is responsible for implementing the plan and include effective procedures: • To obtain the active involvement of employees and authorized employee representatives in developing and implementing the plan. • For the employer to accept and respond to reports of workplace violence. • To prohibit retaliation against an employee who makes such a report of workplace violence. • To ensure that supervisory and nonsupervisory employees comply with the plan. • To communicate with employees regarding workplace violence matters. 14 SAN DIEGO DEALER
• As to how an employee can report a violent incident, threat or other workplace violence concern to the employer or law enforcement without fear of reprisal. • As to how employee concerns will be investigated and how employees will be informed of the results of the investigation and any corrective actions to be taken. • To respond to actual or potential workplace violence emergencies. It also needs to include procedures: • To develop and provide the training. • To identify and evaluate workplace violence hazards. • To timely correct workplace violence hazards identified and evaluated. • For post-incident response and investigation. • To review the effectiveness of the plan and revise the plan as needed. 2. Train Employees Employers are required to provide training when the plan is initially implemented and then annually thereafter. The training must review the following: • The WVPP and how employees can obtain copies and participate in the development and implementation of the plan. • How to report workplace violence incidents or concerns without fear of retaliation. • Workplace hazards specific to a particular employee’s duties. • Corrective measures that you have implemented. • How to seek assistance to prevent or respond to violence and avoid physical harm. • The violent incident log and how to get copies of workplace violence incidents. The training must also provide an opportunity for interactive Q&A with someone knowledgeable about the plan. The training is required for all new employees, employees who are given new job assignments and all employees when a new hazard is presented by newly introduced substances, procedures, processes or equipment. 3. Record Incidents of Violence Each violent incident that occurs must be recorded in a violent incident log. The information from each log must come from an employee who witnessed the incident, other witness statements or investigative findings. No personal identifying information may be included in the log, such as a name, address, email, phone number, Social Security number or any other information that could identify the person providing information for the log entry. Additionally, information in the log must include the following: • Date, time and location of the incident. • Workplace type of violence, such as physical force or threat of physical force, use of a weapon, animal attack, or sexual assault or threat of sexual assault. • Detailed description of the event. • Classification of the offender, such as client, customer, family, friend, stranger, co-worker, supervisor or other titles like these. • Classification of the circumstances, such as the employee finishing up job duties or working in a poorly lit area. • Classification of the incident’s location, such as the workplace, parking lot or some other area. • Consequences of the incident, such as the use of law enforcement, and any actions taken to protect the employees. • Name and job title of the person who made the log entry, as well as the date completed. There are four distinct workplace violence types classified under SB 553: • Type 1 is workplace violence committed by someone with no legitimate business interests at the worksite. • Type 2 is violence directed at employees by customers, clients, patients, students, inmates or visitors. • Type 3 is violence between two current employees or one current and one former employee. • Type 4 is violence committed by a non-employee who has a personal relationship with an employee. Notably, “workplace violence” does not include lawful acts of self-defense or defense of others, according to the bill. 4. Properly Maintain Records The new law requires employers to keep records of each workplace violence hazard as well as the identification, evaluation and correction of each workplace hazard for a minimum of five years. You must save training records, violent incident logs and records of workplace violence investigations for a minimum of one year. Notably, under the new law, workplace violence prevention training records, violent incident logs and records of workplace violence hazard identification, evaluation and correction must be made available to employees and their representatives, upon request and without cost, for examination and copying within 15 calendar days of a request. So, in addition to the personnel and payroll records requests employers often receive, you must be prepared to compile and produce these records as well in an even shorter timeframe. CONCLUSION We are continuing to monitor these developments and will provide updates as appropriate. Scan the QR code to subscribe to Fisher Phillips’ Insight System to get the most up-to-date information. If you have any further questions, contact your Fisher Phillips attorney or any attorney in any one of our six California offices or on our Workplace Safety and Catastrophe Management team. https://www.fisherphillips.com/ en/Subscribe.html NCDA.COM 15
Personal Social Media Posts Can Create Hostile Work Environment By Jennifer Woo Burns, Of Counsel, Scali Rasmussen, PC A recent Ninth Circuit Court of Appeals decision underscored the fact that activity away from the workplace could nonetheless create a hostile work environment for purposes of unlawful harassment/ discrimination claims. In Okonowsky v. Garland, the plaintiff, an employee at the Lompoc correctional facility, had work‑related disagreements and conflicts with a co-worker. Thereafter, the co-worker created a social media account that contained multiple offensive and graphic posts suggesting and depicting rape and physical violence against the plaintiff and women in general. This social media account was followed by many fellow Lompoc employees. The plaintiff complained about the posts to the employer, but she felt that sufficient action was not taken and so she transferred to another location and filed suit for sex discrimination. The District Court dismissed the case because the posts occurred entirely outside of the workplace on the co-worker’s personal social media account, and no messages were sent directly to the plaintiff or displayed/discussed in the workplace without her consent. On appeal, the Ninth Circuit disagreed with the lower court, stating that “[s]ocial media posts are permanently and infinitely viewable and reviewable by any person with access to the page or site on which the posts appear,” and that the posts “also served as a record of which co-workers subscribed to the page and commented on posts, showed their comments and their ‘likes,’ and could be seen at any time from any place — including from the workplace.” The Ninth Circuit also stated that the key inquiry was not whether the post occurred at work or the co-workers interacted with the page while at work, but rather whether “the discriminatory conduct had an unreasonable effect on [the plaintiff’s] work environment.” Under this analysis, the Ninth Circuit concluded that such offsite conduct could alter the working environment in a severe or pervasive manner. This decision is a reminder that there are no defined boundaries for the locus of conduct that could create a hostile workplace environment. This decision also supports the basis for employers to extend their social media policies to harassing, offensive and threatening content that could alter the working environment. Lastly, in investigating and addressing potential workplace harassment and discrimination, employers should not refuse to consider relevant conduct just because it occurred away from the work premises. Employment counsel should be consulted regarding any modifications to policies or harassment investigations. 16 SAN DIEGO DEALER
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Ask Alison How To Help Attract and Retain Top Talent for Your Dealership By Alison McCallum, EPIC Insurance Brokers and Consultants Attracting and retaining top talent requires a strong employer brand and a competitive benefits package. Attracting and retaining top talent requires a strong employer brand and a competitive benefits package. The past decade has seen soaring healthcare costs, legislative complexities and renewal pitfalls. This market puts immense pressure on dealerships to manage benefits costs without sacrificing employee satisfaction. Having the right partner alongside you is a must — you do not need to navigate this alone. Healthcare inflation impact is inevitable. Utilization and increased unit costs will likely impact your renewal, whether your plan is fully insured or self-funded. A good broker can work with your dealership to navigate this challenging benefits landscape and design a cutting‑edge benefits strategy that is: • Competitive: Attract and retain top talent with a plan that offers value through benchmarking, innovative offers and plan designs that align with your dealership’s goals and objectives. • Sustainable: Manage costs effectively to achieve your long-term goals. Review underwriting workups, enrollment strategy, utilization patterns, cost drivers and targeted investments. One size does NOT fit all. One way to lower costs is by providing targeted benefits to specific employee populations. While you may offer certain perks to leaders and hard-to-recruit groups, some strategies could help lower costs for lower-wage employees. Implementing tiered employee contributions based on salary levels, with lower contribution rates is one option. Sometimes, one-off solutions seem easy but drain resources and cause disengagement. Point solutions intended to help manage specific chronic health conditions or address modifiable lifestyle factors may not be worth their anticipated value. Some tips to consider: • Analyze your claims data to validate whether the solutions improve outcomes and reduce costs through increased engagement. • Ongoing data validation is required to ensure point solutions continue delivering value. • Less is sometimes more. Too many point solutions can dilute engagement and add to administrative costs. Consolidating vendors may help improve coordination and communication. • Effective employee communication is critical when making changes to point solutions to ensure members understand available programs and how to participate. As you plan your 2025 benefits strategy, your broker is an indispensable partner. An approach to integrated benefits, tailored to your specific needs, can help you bridge gaps in your current offerings and align with your broader dealership and financial goals. EPIC’s tools and strategies can help you evaluate the value you’re getting from your plan and your vendors, delivering efficiencies and effectiveness that are well worth the effort. If you would like more information, or a benefit strategy and cost review, EPIC will provide details to NCDA members at no cost. EPIC ranks among the top 15 retail insurance brokers in the United States and is the largest insurer of auto dealers in the state. Alison McCallum has been in the employee benefits industry for over 20 years and personally works with more than 80 California dealerships. She is a principal with EPIC Insurance Brokers and Consultants, the CNCDA’s only licensed employee benefits broker. With this partnership EPIC offers unique dealership expertise and services available to NCDA dealer members at no cost. If you have questions or would like further information, please feel free to contact her at (949) 417-9136 or alison.mccallum@epicbrokers.com. 18 SAN DIEGO DEALER
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“We have a fantastic relationship with the LSL team. They keep our interests top of mind and maintain a positive reputation in the industry.” —Craig Whetter, President | David Wilson Automotive Group (relationship since 1983) Donald Slater, CPA, Partner Assurance & Advisory donald.slater@lslcpas.com Adam Odom, CPA, Partner Assurance & Advisory adam.odom@lslcpas.com David Myers, MST, CPA, Partner Tax & Advisory dave.myers@lslcpas.com LSL | CPAs & Advisors | Brea, Laguna Hills, Sacramento & Santa Ana, CA | The Woodlands, TX | lslcpas.com/automotive | 714.672.0022 EPICBROKERS.COM ©2024 Edgewood Partners Insurance Center. All rights reserved. | CA License: 0B29370 EPIC Insurance Brokers & Consultants is proud of its partnership with more than 300 California dealerships and is the CNCDA’s only licensed broker for health insurance and employee benefits. As the dealers’ consultant, experience what EPIC can do for you, including: • A team producing significant results with decades of experience understanding the specific needs of dealerships • Fully insured and unique alternative funding options to best fit your needs and generate the best possible costs • Full compliance services and HR support for your team LEARN MORE ABOUT OUR SERVICES BY CONTACTING: Alison McCallum (949) 422-6431 alison.mccallum@epicbrokers.com 22 SAN DIEGO DEALER
131,619 142,562 143,100 146,300 2022 Actual 2023 Actual 2024 Forecast 2025 Forecast YTD '23 YTD '24 % Chg. Mkt. Share thru Sep. thru Sep. '23 to '24 YTD '24 TOTAL 107,749 107,033 -0.7% Car 30,919 26,980 -12.7% 25.2% Light Truck 76,830 80,053 4.2% 74.8% Domestic 38,812 35,148 -9.4% 32.8% European 15,111 14,777 -2.2% 13.8% Japanese 42,810 45,798 7.0% 42.8% Korean 11,016 11,310 2.7% 10.6% Third Quarter 2024 Released October, 2024 Market Summary Forecast for County New Retail Light Vehicle Registrations Domestics consist of vehicles sold by GM, Ford, Stellantis (excluding Alfa Romeo and FIAT), Tesla, Rivian, and Lucid. Data sourced from Experian Automotive. The graph above shows annual new retail light vehicle registrations in 2022 and 2023, and Auto Outlook’s projections for all of 2024 and 2025. Historical data sourced from Experian Automotive. DOWN 9.6% vs. ‘20 UP 8.3% vs. ‘21 UP 0.4% vs. ‘22 UP 2.2% vs. ‘23 San Diego Auto Outlook Comprehensive information on the San Diego County new vehicle market FORECAST County New Vehicle Market Predicted to Increase Slightly in 2025 San Diego County new vehicle market is stuck in neutral » As shown on the following page, U.S. equivalent SAAR levels in the county stood at a middling 14.3 million units in 3Q ‘24. » Lower interest rates, falling inflation, increasing employment, and rising incentives are helping with consumer affordability. » As mentioned in the previous release, heightened anxiety due to the election and geopolitical unrest has impacted consumer confidence. This is keeping some new vehicle purchasers on the sidelines. » Longer term determinants are positive. Pent up demand from five years of below average sales is significant and affordability will continue to improve, but the sales recovery will likely be gradual. Small increase is predicted in 2025 (see graph). Below is a review of key trends in the San Diego County new vehicle market. County market has under-performed the Nation so far this year County new light vehicle registrations slipped 0.7% during the first nine months of 2024 vs. year-earlier levels. National retail market was up 2.2%. New vehicle registrations predicted to increase slightly for all of 2024; another small increase likely in 2025 Registrations for all of this year are predicted to exceed 143,000 units and improve slightly from 2023. Market is expected to increase by 2.2% next year (see below). Battery electric vehicle market share increased from 2Q to 3Q ‘24 Higher incentives have given a boost to county BEV sales. Electric vehicle market share increased from 23.0% in 2Q ‘24 to 24.2% in 3Q. Franchised dealerships post big gains in BEV market Franchised dealership BEV sales increased 23.5% during the first nine months of this year versus year earlier. Sales by direct sellers were off 6.5%. Hybrid and plug-In vehicle sales out-pace industry so far this year Combined market share for hybrids and plug-in vehicles is 19.3% so far this year, up from 15.7% in 2023. Lexus, Rivian, GMC, Toyota, Honda, BMW, and Land Rover have largest gains in 2024 New vehicle registrations for each of the seven brands were up by more than 5% in the first nine months of this year versus year earlier. Tesla registrations fell 8.6% (see page 4). Registrations increased by more than 24% for six brands during the past five years The overall market declined 1% from January through September of this year versus the total in 2019. Ten brands out-performed the market during the five year period. (See page 5 for long term sales analysis.) Tesla, Hyundai, and BMW are top sellers in BEV market; Toyota and Honda are hybrid leaders. Tesla accounted for 56.7% of the county BEV market so far this year, Hyundai and BMW were second and third highest, but combined share was just 10.6%. Toyota and Honda accounted for 67.1% of the hybrid vehicle market (see page 7).
Page 2 San Diego Auto Outlook At Auto Outlook, we strive to provide sound and accurate analyses and forecasts based upon the data available to us. However, our forecasts are derived from thirdparty data and contain a number of assumptions made by Auto Outlook and its management, including, without limitation, the accuracy of the data compiled. As a result, Auto Outlook can make no representation or warranty with respect to the accuracy or completeness of the data we provide or the forecasts or projections that we make based upon such data. Auto Outlook expressly disclaims any such warranties, and undue reliance should not be placed on any such data, forecasts, projections, or predictions. Auto Outlook undertakes no obligation to update or revise any predictions or forecasts, whether as a result of any new data, the occurrence of future events, or otherwise. COUNTY MARKET VS. U.S. San Diego County DOWN 0.7 U.S. UP 2.2% Data sourced from Experian Automotive. Data sourced from Experian Automotive. SAAR estimates: Auto Outlook. QUARTERLY RESULTS San Diego County Quarterly Registrations Seasonally Adjusted Annual Rate, Converted to Equivalent U.S. New Vehicle Market SAAR (millions of units) KEY TRENDS IN SAN DIEGO COUNTY NEW VEHICLE MARKET DOWN 5.3% San Diego Auto Outlook Published by: Auto Outlook, Inc. PO Box 390, Exton, PA 19341 Phone: 610-640-1233 EMail: jfoltz@autooutlook.com Editor: Jeffrey A. Foltz Information quoted must be attributed to San Diego Auto Outlook, published by Auto Outlook, Inc. on behalf of the New Car Dealers Association San Diego County and must also include the statement: “Data sourced from Experian Automotive.” 14.2 14.2 15.0 14.8 15.0 15.0 14.8 14.3 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Millions % Change In New Retail Market YTD 2024 thru September vs. YTD 2023 New retail light vehicle registrations in the county declined 0.7% during the first nine months of this year versus the 2.2% improvement in the Nation. The graph on the left provides an easily recognizable way to gauge the strength of the county market. It shows quarterly registrations based on a seasonally adjusted annual rate. These figures are then indexed to SAAR sales figures for the U.S. new vehicle market. So just like in the national market, when the quarterly SAAR is above 17 million units, the county market is strong, 15 million is about average, and below 13 million is weak. Equivalent SAAR levels in the county have not exceeded 15 million units for the past 10 quarters. % Change in quarterly registrations vs. year earlier (3Q ‘24 vs. 3Q ‘23) % Change in registrations vs. previous quarter (3Q ‘24 vs. 2Q ‘24) DOWN 6.4%
Third Quarter 2024 Page 3 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Electric (BEV) Plug In Hybrid (PHEV) Segment Market Shares in County and U.S. - YTD 2024 thru September The graph above shows market shares for nine primary segments in both the county and U.S. markets. County market share is represented by the blue bars. Orange shaded bars show U.S. Data sourced from Experian Automotive. PRIMARY MARKET SEGMENTS - COUNTY AND U.S. COMPARISON OF METRO AREA MARKETS BEV and PHEV Share in Selected Metro Area Markets - YTD 2024 thru September Markets are shown from left (highest) to right (lowest) based on combined BEV and PHEV market share. Data sourced from Experian Automotive. Combined market share for BEVs and PHEVs in San Diego County was above average compared to the other markets. BEV market share was higher than 20% in four California markets and Denver. BEV share in the County was 23.2% and PHEV share was 3.9%. U.S. shares were 8.4% for BEVs and 1.9% for PHEVs. KEY TRENDS IN SAN DIEGO COUNTY NEW VEHICLE MARKET 2.6% 5.3% 6.6% 4.7% 8.7% 17.2% 18.9% 7.2% 28.8% 2.4% 5.5% 7.5% 8.5% 11.2% 12.3% 12.9% 13.9% 25.9% Van Mid Size and Large Car Luxury Mid Size and Large SUV Luxury and Sports Car Small Car Pickup Mid Size and Large SUV Luxury Small SUV Small SUV County U.S. Largely due to strong sales of the Tesla Model Y, Luxury Small SUV market share in the county was significantly higher than in the U.S.
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