February 2019 West Edition

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CAA Lobbyist Discusses New CA Laws for 2019 by Ed Attanasio

Every year, hundreds of new laws are enacted that impact California’s automotive repair shops, both collision and mechanical. From huge MSOs to independent shops, these laws have the potential to influence collision repair centers everywhere if they don’t adapt and adhere to these new laws. Jack Molodanof, an attorney and lobbyist who has distinguished himself in areas of automotive legislative and regulatory law over the past 30 years, is the go-to lawyer/lobbyist in California for the automotive

repair industry and represents several statewide automotive associations, including the California Autobody Association (CAA), Automotive Service Councils of California (ASCCA) and the California Automotive Business Coalition (Cal-ABC). Molodanof also serves on the California Bureau of Automotive Repair (BAR) Advisory Group, which provides input on BAR programs. Below is a short summary highlighting some key measures that take effect in 2019, unless otherwise noted. Minimum Wage Increase: Reminder See New CA Laws, Page 16

Speakers at SCRS’ Ideas Collide Discuss Their Visions for Industry’s Future by John Yoswick

An automated system that can detect tiny dents or other vehicle “anomalies” within seconds. Collision parts being ordered within minutes of a crash. A not-for-profit data repository that would ensure shops have long-term access to their job file records. These were among the topics covered in a unique TED Talk-style presentation at “Ideas Collide,” a new session that the Society of Collision Repair Specialists (SCRS) hosted during SEMA in Las Vegas in

AUTOBODYNEWS.COM

Vol. 37 / Issue 2 / February 2019

Class Action Filed Against Two Auto Dealerships in California Alleging Violation of Labor Laws A California law firm has filed suit against two dealership groups in class action complaint alleging that DC Auto, Inc. and Magnussen Imports failed to pay proper minimum wages and did not provide the legally required off-duty meal and rest breaks to their employees. The Riverside Labor law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP, filed the class action lawsuit against DC Auto, Inc., alleging that the company failed to lawfully provide meal and rest periods and pay minimum wages to their California employees working for the company. The class action lawsuit against DC Auto, Inc., is currently pending in the San Bernadino County Superior Court, Case No. CIVDS1807525. The lawsuit filed against DC

Auto, Inc., by labor law attorneys alleges the DEFENDANT’S meal period policies and practices were unlawful because PLAINTIFFS and other CALIFORNIA CLASS Members were far too over-booked and overworked to take a timely off-duty thirty (30) minute meal period. The lawsuit further alleges that the failure of DC Auto, Inc., to provide the legally required meal and rest period is evidenced by the company’s business records. Additionally, the lawsuit alleges that DC Auto, Inc., does not accurately record all missed meal and rest periods, and fails to pay minimum wages due for all hours worked. Under California law, every employer shall pay to each employee, on the established payday See Labor Laws, Page 8

Challenges of Processing Hail or Other Catastrophe Claims Among Discussion at Recent CIC

timating system,” but McDonnell said “cat team” claims handlers aren’t With another hail season approach- always aware of that. ing, a panel discussion at last No“We had to go through that vember’s Collision Industry [PDR] company for a supConference (CIC) offered plement,” McDonnell said. insights from shops, insur“We sent it to them and they ers and paintless dent repair took off a significant amount. companies on reducing fricThey said, ‘We have an tion related to catastrophe agreement [with the insurer claims after a major storm. involved] and you don’t get paid for those things.’ I had Matthew McDonnell Montana shop to call them and tell them, of Big Sky Collision in Monowner Matthew tana described some of the McDonnell said not ‘We have a different regulaall those helping tion in Montana. You cannot challenges of working on an insurer handle disregard repair operations, such “cat team” claims, such catastrophe claims and I just want to let you as those managed by a paintafter a storm will know you’re inconsistent less dent repair company. be aware of laws and regulations in with Montana law.’ They Since 2011, for example, the state in which said, ‘Oh, I don’t have to Montana has had a law that they are working follow Montana law.’” prohibits an insurer from But although some states may “unilaterally disregard(ing) a repair operation or cost identified by an esSee Processing Hail, Page 20 by John Yoswick

Pete Tagliapietra of NuGen IT suggested the industry develop a not-for-profit data repository to give shops long-term access to their job file records and other data

November. SCRS invited 10 speakers to offer ideas or visions related to See SCRS’ Ideas Collide, Page 18

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