Picture this- You put twenty years into growing your business. Twenty years’ worth of money, hard work, and dedication. Come the twenty-first year when the business is a fully-functioning, profit-making machine, you get a knock on your door; you’ve been sued.
As any dealer will tell you, running a successful dealership is already challenging enough without managing the risk of family dramatics spilling over into the day-to-day operations. To get ahead of these types of risks, you must make the separation of business and family unmistakably clear. A formal, written family employment handbook is one way to do this.
Adding or swapping a franchise requires due diligence
After several strong sales years in a row, some auto dealers are considering adding a franchise to expand their sales base.
None of your competitors will shed a tear at your employee turnover rate. They want the most talented staff, and poaching your best becomes a lot easier if you have lacking fringe benefits that competitors can thrust into the limelight. According to the National Automobile Dealers Association (“NADA”), in 2016, there was a worrying overall turnover rate of 40% at dealerships. Even worse, the NADA reported that turnover among salespeople in 2016 was a daunting 72%.
With so many rules to follow, the first step to ensuring compliance is to make sure that you’re aware of them. It is also suggested to create a compliance checklist for each of your transactions to guide the process while following the laws and best business practices.
There is an increasing emphasis on how business activities effect the environment throughout many different industries. Automobile dealership operations can leave a heavy carbon footprint, so this industry has many opportunities for change.
Since the 1930s, U.S. businesses have relied on rules detailed in the Fair Labor Standards Act ("FLSA") to determine which employees are eligible to receive overtime pay. These rules are scheduled to change on December 1, 2016, for the first time in more than a decade.
Making the best of a bad situation
The National Highway Traffic Safety Administration has reported that more than 8.4 million airbags have been replaced due to recalls in the past two years, and that number continues to grow. The avalanche of defective airbag recalls was catalyzed in 2015 by numerous incidents of injury or death during vehicular collisions, caused by flying metal shards launched from airbags manufactured by a specific Japanese supplier.
Automobile dealerships are subject to certain rules and regulations under the Fair Labor Standards Act. Here are some need-to-know facts.
If your dealership offers a retirement plan to employees, you have certain fiduciary responsibilities as the plan’s sponsor. Failure to meet these responsibilities can be costly, because corporate officers (as fiduciaries) may be held personally liable to restore losses suffered by plan participants.