New Jersey Automotive June 2024

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You’ve got the right tools, staff, technology and procedures to give your customers the best repair possible. The missing piece of the puzzle? Genuine Volkswagen Collision Parts. Contact an authorized dealer today and find your perfect fit.

Ciocca Parts Warehouse

8 Minneakoning Road

Flemington, NJ 08822

Toll Free: 800-221-1256

Fax: 908.782.1795

rmuir@cioccadealerships.com www.cioccaparts.com

Paul Miller Volkswagen 118 Morristown Road

Bernardsville, NJ 07924

TOLL FREE: 877-318-6557

LOCAL: 908-766-1600

FAX: 908-766-6171

Email: aaitchison@paulmiller.com www.paulmillervw.com

“Volkswagen“ and the Volkswagen logo are

Douglas Motors 491 MORRIS AVE. SUMMIT, NJ 07901

PHONE: 908-277-1100

FAX: 908-273-6196

TOLL FREE: 800-672-1172

www.douglasvw.com email: douglasparts@douglasautonet.com

Trend Motors 221 Route 46 West Rockaway, NJ 07866

888-267-2821

fax: 973-625-4985 www.trendmotors.com email: dreinacher@trendmotors.com

Crestmont Volkswagen 730 ROUTE 23 NORTH

POMPTON PLAINS, NJ 07444

TOLL FREE: 800-839-6444

fax: 973-839-8146

www.crestmontvw.com email: vwparts@crestmont23.com

P.O. Box 734

Neptune, NJ 07753

EXECUTIVE DIRECTOR

Charles Bryant 732-922-8909 / setlit4u@msn.com

2023-2025 OFFICERS

PRESIDENT Ken Miller, 821 Collision, LLC (973) 949-3733 / kmiller@821collision.com

COLLISION CHAIRMAN/

PAST PRESIDENT ATTENDING

Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net

MECHANICAL CHAIRMAN

Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com

TREASURER

Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com

SECRETARY

Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com

BOARD

Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.com

Brad Crawford, Livingston Collision, Inc. 973-992-5274 / livingston.collision@gmail.com

Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com

Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com

Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com

Danielle Molina, 821 Collision (973) 949-3733 / dmolina@821collision.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com

Anthony Trama 973-818-9739 / anthonytrama@aol.com

BOARD ALLIED

Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com

AASP/NJ NEWS

16 AASP/NJ’s Industry Night Covers ADAS, Compliance, AI and Negotiations by Alana Quartuccio

GUEST FEATURE

20 Technical Education Deserves More Respect by Bob Magee

17TH ANNUAL LOU SCORAS GOLF OUTING

21 Tuesday, September 17, 2024 Knob Hill Country Club, Manalapan, NJ

LOCAL FEATURE

24 Don’t Touch That – Protecting Yourself from Questionable Vehicles by Alana Quartuccio

COVER STORY

28 A.I. for Dummies: Embracing the Business Benefits by Chasidy Rae Sisk

LOCAL NEWS

PRESIDENT/PUBLISHER

Thomas Greco / thomas@grecopublishing.com

VICE PRESIDENT/SALES DIRECTOR

Alicia Figurelli / alicia@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Quartuccio / alana@grecopublishing.com

MANAGING EDITOR

Chasidy Rae Sisk / chasidy@grecopublishing.com

OFFICE MANAGER

Donna Greco / donna@grecopublishing.com

PRODUCTION COORDINATOR

Joe Greco / joe@grecopublishing.com

CONTRIBUTING

Published by: Thomas Greco Publishing, Inc.

244 Chestnut Street, Suite 202, Nutley, NJ 07110

Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com @grecopublishing

32 AASP/NJ Members Celebrated as Collision Warriors at Spartan 300 Symposium by Chasidy Rae Sisk

LEGAL PERSPECTIVE

34 What Do You Mean She Is Entitled to Overtime? She Is A Manager! by Brent R. Pohlman, Mandelbaum Barrett PC

AASP/NJ NEWS COVER STORY

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY

38 Wharton Insurance Briefs by Mario DeFilippis LEGAL PERSPECTIVE

Charles

Ed

Dave

Tom

Bob

Alicia Figurelli

Thomas Greco

Dan Hawtin

Rich Johnson

Mike Kaufmann

Wes Kearney

Nick Kostakis

Jim Kowalak

Keith Krehel

Joe Lubrano

Michael Lovullo

Jeff McDowell

Sam Mikhail

Ron Mucklow

George Petrask

Russ Robson

Jerry Russomano

George Threlfall

Anthony Trama

Cynthia Tursi

Lee Vetland

Paul Vigilant

Rich Weber

Brian Vesley

Glenn Villacari

Stan Wilson

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Manscaping

I’m pretty sure I have written about my hair situation in the past, so if some of this sounds familiar, please forgive me. After 30 years of writing this column, there’s bound to be some repetition.

As a kid, I always had a good, full

head of hair. It was never the thick kind you see on a lot of kids with Italian heritage, but it was a pretty nice crop. There was baldness in my family. My dad and his father were either bald or balding, but I never really gave it a thought until I started

by THOMAS GRECO, PUBLISHER

noticing my brother Steve’s receding hairline. I was probably too young to be wary, but I should have been. It started receding when he was in high school. But my older brother Ralph had thick hair, so I guess I felt I had a 50/50 shot. What I didn’t realize at the time was that the actual 50/50 shot would turn out to be half a life with a full head of hair; the other half, I’d be balding.

It may seem crazy, but I can’t pinpoint a time when I noticed I was losing my hair. I mean, I go back and look at photos, and it doesn’t seem gradual at all. I had hair when I got married 33 years ago. I had hair when I had my kids 30 and 26 years ago. I’m pretty sure I even had hair when I turned 40; however, looking back at photos, it seems that the descent began after 40. It’s then that the floodgates opened.

And to tell you the truth, it never really bothered me. I was content with the thinning year after year. Sure, I tried growing it long or keeping it short, but vanity was never one of my characteristics, so I didn’t pay much attention. That is until recently.

I got out of the shower and went to brush my hair and to my surprise, I was f@#king BALD! I still have some on the sides but in the middle? There’s not much left – and I don’t know why – but that suddenly started to bother me.

I’ll get back to this, but I have to tell you I really, really have one question about all of this…Where did all the hair go??? I swear to you, I have never seen my hair on the shower floor. I have never seen strands of hair in my towels, in my sink or even in my hairbrushes.

continued on pg. 37

Time to Lose the Cape

In our industry, we often encounter individuals who would willingly give the shirts off their backs to help others. This altruistic mindset is admirable but may contribute to some of the significant challenges we face. One such challenge is the entrenched habit of negotiating claims on behalf of our customers, a practice that is proving increasingly unsustainable for future profitability.

For too long, we’ve been donning our metaphorical superhero capes, entering battles on behalf of our clients against insurers, often to our detriment. It’s time to reassess this strategy. Has it truly served us well? Traditionally, shops have been told that they must negotiate. But what does this mean in practice? Typically, it translates to making monetary concessions to reach an agreement with the bill payer, a practice that has persisted for years.

Let’s consider for a moment a few definitions of negotiate:

**ne·go·ti·ate** /nə’gōSHē’āt/ [transitive]: negotiate something; to arrange or agree to something by formal discussion; to negotiate a deal/contract/treaty/settlement; to confer with another so as to arrive at the settlement of some matter.

Nowhere in this definition is there mention of concession, capitulation or giving up our money. Negotiating is not about “splitting the difference” or accepting what a bill payer offers because it seems like all we can get. That’s quitting! (Or at best, taking the easy way out.)

I suggest that our thinking on this issue is all wrong.

by KEN MILLER

Were you trained to negotiate? Did you get authorization from the customer to negotiate on their behalf? Do you need authorization to do so? Have you ever negotiated away the rights afforded to a customer under their policy in returning their vehicle to pre-loss condition by not doing so, or worse, done so for a claimant when no policy provision exists?

We must remember that we did not damage the vehicle, choose the insurance company or write the procedures to repair the vehicle. In fact, to quote a friend, we don’t determine how much it costs to fix the car – the car does; however, we are responsible for repairing the vehicle properly. This means writing a thorough and proper repair plan, ensuring all charges are justified and involving the customer in their claim process so they are informed about the repairs being performed on their vehicles. Then, in the instance a bill payer refuses to reimburse for complete, safe and proper repairs, the customer should be advised, and they need to provide direction on how they would like us to proceed, including how to address any potential short pay.

Changing our behavior is crucial. Only then can we expect to see changes in our reality. For those feeling unsure about where to start, engaging with industry associations and attending training seminars can be a great option. Business coaching is another excellent choice. The path to a more profitable way of running your shop is likely closer than you think. Actually, it’s right there! Just on the other side of your comfort zone!

By shedding the superhero cape, reevaluating our approach to negotiations and involving our clients in their repairs, we can foster a healthier, more sustainable industry that benefits both our businesses and our customers.

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Terence

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SERVICE, GUIDANCE & LIFETIME SUPPORT ON ADAS AND MORE AT AATI, INC.

by Alana Quartuccio

In today’s fast-paced, technology-driven climate, it takes more than just the proper equipment for automotive repairers to properly perform ADAS-related diagnostics and calibrations. Forward-thinking shops also need an experienced adviser to provide the support and guidance to safely and effectively use these tools to perform the necessary tasks.

Being a teacher and mentor to his clients is exactly what Gary Machiros sets out to do through his business, Applied Automotive Technology, Inc., with offerings that go far beyond “just” ADAS calibration system sales.

Machiros’ 30-plus years of training and repair experience have set him up naturally for this career path. His automotive journey began at the age of 10, working for his father’s gas station in Peabody, MA. By the time he was 20, he was running the family business, Angie’s Service, Inc. (the only gas station on Plum Island in Newbury, MA), which he still does today. The operation has since moved off the island to Newbury and has quadrupled in business; they began performing ADAS calibrations for collision centers in 2020. Currently, the shop performs between 20-40 calibrations per day.

“Back in 1998, General Motors was opening a lot of dealerships all around the world, and they needed a lot of overseas training as a result,” Machiros recalls. “The company that hired me to do the training required that I have a corporation; that was when Applied Automotive Technologies was initially born. I went to the Middle East and taught in Dubai for a while. I also traveled all over the northeast and other parts of the country giving automotive lectures on different systems. Today, we sell equipment all over the country, and people also fly in from different parts of the country to train. We spend a lot of time with them, teaching and training.”

Machiros understands the value in using OEM scan tools and has made it his life’s work to teach shop owners how to use these tools. He’s also expanded to include European scan tool diagnostics in his offerings, selling and training technicians in these operations. Machiros was asked to sell and support Autologic in New England. When Autel US was founded in 2004, he was again asked to sell and support this new revolutionary company. Since 2021, he has been selling and supporting Autel ADAS systems for the automotive aftermarket industry, and training Autel ADAS clients through AATI since 2022.

“When someone buys a calibration system, they will work with our ADAS calibration team members, training on live cars and learning right from the ground floor so they will know how to do it right in their own shop,” he explains. “We take the body shop from knowing nothing about the business and technical side of ADAS to hitting the ground running with everything they will need to do. Our clients get to see and feel everything. We also provide lifetime support. If they ever have a problem, they can call us.”

“We are a training group that sells equipment,” he adds. “You can buy something online, but you will not get any support or business training. What we bring to the table is a great asset to any body shop that wants to get into ADAS calibrations, as we will be with them through their entire ADAS journey, from the day they buy the equipment until forever. We are very special in that regard when it comes to building relationships with body shops, and we do this with shops all over the country. We teach them how to use the equipment and also understand how to properly invoice to be reimbursed by the insurance company, and we are also there to be a problem solver. If something happens, we are there for them.”

AASP/NJ’s Industry Night Covers

ADAS, Compliance, AI and Negotiations

It was a great night of fellowship and knowledge!

AASP/NJ’s Industry Night brought shop owners together for an interactive evening of networking and learning as representatives from some of the industry’s top service providers shared insight on ADAS calibrations, compliance, artificial intelligence (AI), estimating and negotiations at the Holiday Inn (Clark) last month.

AASP/NJ President Ken Miller championed all for taking the time out to interact with peers and hear from some of the industry’s best.

Craig Camacho of AirPro Diagnostics covered the everexpanding world of ADAS, focusing on how important it is to document every step and strictly follow OEM repair procedures to ensure safety. Camacho believes, “In-house calibrations are where it’s at.” It reduces cycle time and avoids the hassle of needing to make an appointment with an outside dealership.

He got repairers to consider the future by reminding them, “ADAS is in its infancy stage. It’s just a baby, and it’s going to really ramp up. If you aren’t on top of it and don’t have folks

who know what they are doing, stand behind it and record what they are doing, you have to ask yourself if you are mitigating liability.”

Sam Sepulveda of American Compliance spoke about the many things that can bring OSHA to a shop’s doorstep and how to stay compliant in order to avoid violations.

OSHA sets out to make sure that one’s facility offers a safe work environment. Visits may be random,

brought on by an employee who reported something they believe is in violation or because a major incident or death occurred at the facility. Having a safety program in place is ideal; however, there are basic safety measures shop owners can take, Sepulveda suggested.

“One major problem is blocked access to the fire extinguisher,” an extremely dangerous situation in an emergency. Another is eye wash stations. “Seconds matter when it comes to the eyes, so make sure access [to the station] is clear,” he advised.

CCC Intelligent Solutions’ Craig Stevens addressed how repair facilities can leverage technology to modernize their businesses. “Every answer to every question is in their pocket,” Stevens said of this generation, which lives by way of their phone.

Many people fear that AI is going to take over jobs, but that is not the case according to Stevens, who suggested that it can provide relief in some areas. “We are not building products to replace employees. We want to combine artificial intelligence with human intelligence to help you do

Yanni Koutmos Eagle MMS

Craig Stevens CCC Intelligent Solutions

Sam Sepulveda American Compliance

Craig Camacho AirPro Diagnostics

Ken Miller AASP/NJ President

by ALANA QUARTUCCIO

what you do.”

Stevens also reviewed the recent change MOTOR made to its database that allows for on-site, on-the-spot evaluation for blends.

Yanni Koutmos of Eagle MMS

closed out the night with intel on how best to go about getting paid for necessary paint and materials through itemizing estimates.

“There are a lot of expensive things we use that don’t come out

of the tip of a gun, which is what everyone focuses on,” Koutmos emphasized the need for estimating software that itemizes everything. “Masking tapes, masking papers, PPS liners and lids. We never write for PPS cups. How many do we use on a typical repair? Three minimum.”

When it comes down to negotiation tactics, he suggested a shop gets its house in order.

“Make sure that you have everything in writing. Make sure you are doing everything that you say you are doing. The way things look will influence how you get paid. Have your house in order both metaphorically and physically.”

Prior to the presentations, attendees interacted with members of AASP/NJ’s Board of Directors at an exclusive meet and greet at the hotel restaurant.

A packed house came out for Industry Night

Technical Education Deserves More Respect

After reading the Mechanical Chairman’s Message in the January 2024 edition of New Jersey Automotive (available online at bit.ly/NJA0124), there are a few things I’d like to say.

Throughout all the years I was on my school’s advisory board for AASP/NJ, the number one complaint received was “we need new people in our profession.” After over 18-plus years in my small successful shop, I decided to go into the teaching field. At 53 years old, it was difficult to go to William Paterson for 12 subjects to get my teaching degree certificate. For me, spending 30 hours a week in William Paterson, plus running my shop, was a stretch.

When I finally passed and obtained my teaching certificate, I entered Bergen County Technical High School as an auto body, collision and refinishing instructor with 25 students in my class who came from guarded schools. They wanted me to teach out of an outdated textbook, and I refused. I contacted the publishing company and told them their textbook was out of date and asked if they had an updated edition. They said “NO, but if you have so much knowledge on this subject, would you like to edit, review and correct one of the chapters in the text for $100?” Although I am not a scholar, I accepted their offer.

After many hours – worth way more than the $100 they were paying me – I finished the chapter. A few days later, the president of the publishing company called to tell me they had never seen so much input and correction of a chapter and asked me if I wanted to be the main editor and reviewer of the remaining 100plus chapters. Again, I accepted. After I completed the entire textbook, I

sent it to the company. My name was listed in the book as the main editor and reviewer, and I was paid $1,000, which was not close to the hours of my own time I put into the book. Still, when they asked me to review and edit three more textbooks and asked me if I wanted to publish a book with my name on the cover; I said yes.

During my first two years teaching auto body, collision and refinishing, I entered one of my students in SkillsUSA to compete with 30 other schools in New Jersey, and he took first place, the gold medal. After the third year, they took my auto body program away because they wanted me to teach mechanical. They said mechanical was more difficult than auto body to get more kids in the program. I told them that every great mechanic was not necessarily a good body man, but every great body man was usually a great mechanic. After nine years teaching my full airbrush elective class with mostly art students, they said they were taking my airbrush elective class away because I was not a certified art teacher. I told them I have been doing airbrush murals and being paid for more years than the two art teachers have been teaching and the kids loved the class.

In the 21 years I have been teaching, they removed 18 technical courses in that school because they said every student was going to college and could make more money in those careers than in the technical areas. I explained that not every student who attends college completes the four-year program; many leave after two years and try to get a job in industry. There are academic teachers and administrators running a technical school, yet they have no idea how to run a successful business. They continue to take away

funding for technical programs and reduce the number of students who are interested in those programs by pushing them into college prep or advanced AP courses that look good on their college resume.

I always told my students to get a job in someone’s hobby. People will pay more for their hobbies than their bills. The counselors never tell the students to investigate the course they take for four years to see how that field is. Are there jobs available in their area? How much competition is in that field? Many kids spend four years in college and are unable to find a job in the field they studied, so they then try to get a job anywhere they can. It’s a shame many high schools are eliminating technical programs because they only want college graduates. It frustrated me that they thought of me as a blue-collar worker based on my trade because they have no idea of how successful one can be in our field.

To me, an experienced auto body professional is an artist who can take a wrecked vehicle and make it better than the factory. The politicians should put more emphasis on technical trades because everyone is not meant to go to college. I have had many successful students enter our industry and do great, and I keep in touch with them to see how they are doing. That is as good of a feeling as finishing a collision job and having the customer astonished on how great it was restored.

Former AASP/NJ member

Bob Magee is a retired automotive instructor and body shop owner.

LOU SCORAS MEMORIAL GOLF OUTING

TUESDAY, SEPTEMBER 17 Knob Hill Country Club, Manalapan, NJ

PRICING: $195/player ($780/foursome) DINNER ONLY (NO GOLF): $60 ea. 11:30am Registration & Lunch • 1pm Shotgun Start 5:30pm Cash Bar • 6pm Dinner

JOIN US FOR A FUN DAY OF GOLF WHILE SUPPORTING AASP/NJ!

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Bronze Sponsor Package: $1,500

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This year’s outing is dedicated as always to the memory of Lou Scoras of Holmdel Auto Body.

A portion of the proceeds from this year’s event will be put toward a collision industry scholarship fund.

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Don’t Touch That – Protecting Yourself from Questionable Vehicles

Automotive professionals can’t afford to be too cautious. There is a growing list of risk factors that an auto body shop owner has to keep in mind. Whether it’s protecting one’s business from liability, staying up with OSHA requirements or simply making sure repairers are properly trained to handle things like high-voltage batteries, the conversations never cease when it comes to safety and protection.

In fact, some conversations have only just begun when it comes to dealing with vehicles that may have been exposed to illegal substances.

The crew at 821 Collision (North Haledon) recently had a vehicle arrive at their door that left them with no choice but to learn all about it.

“We looked at it and thought, ‘What is going on with this car?’” explained Danielle Molina, who says the car was recovered after being stolen, and where the car had been or what it had been used for during the time it had been missing was, of course, unknown.

“The owner of the vehicle brought it to us. It was not wrecked physically, but it was non-drivable and had computer issues in need of repair. The insurance company asked us for a repair plan, and that’s when the thought occurred to us – is it safe to touch?”

Molina recalled reading an article about a police officer who fell victim to a drug overdose just by brushing white powder off his uniform at a traffic stop. “He just brushed his shoulder and found himself unconscious an hour later!” she recounted. This alarming situation stayed clear in her mind and upon looking at the vehicle. “It did not come in pristine looking. There were indications that it had been used for something other than a healthy purpose.”

Protecting their workers is not a new concept at the shop; precautions are always put into place. “We are always very careful. We wear gloves and cover parts such as the steering

wheel, gear shift, seat and other things that we’re likely to touch, but it’s different with theft recovery,” Molina shared. “The customer had not even thought about the vehicle being exposed to narcotics. It’s a conversation we must have with the customer if their vehicle has been stolen. No one knows what the vehicle was used for during the time it was stolen.”

Finding professionals to inspect and clean the vehicle was not an easy task. The shop’s owner, Ken Miller, had been aware of shops encountering this situation, but services seemed to be more common on the west coast, Molina said. Upon researching, they found PPM Site Services, an environmental and disaster response team experienced with cleaning vehicles, including police cars. It’s not every day that they are called in to body shops to clean out theft recovery vehicles, but it’s a need that is beginning to grow, according to Angel L. LeDuc, vice president of PPM Site Services.

“Body shops have called us in

because they don’t want to touch anything until they know the vehicle has been decontaminated, so we come in and clean it inside and out. We test the vehicle for substances, and then we test it again to make sure there are no traces of anything left behind.

“The majority of the time, we barely find anything,” he added, but in the cases where they find traces of something, it’s usually fentanyl, in which case they report it to the authorities.

LeDuc’s advice to any shop owner who has a questionable vehicle onsite is to not touch it and call in professionals to clean and inspect it. “You don’t want to come in contact with [fentanyl or other substances],” he said. “We know the effects it can have on people.”

Molina recalled the decontamination process as being “pretty impressive looking. They wore full Hazmat suits and blocked off a whole area of the lot for a few hours. It was impactful to see what they did to protect themselves.”

Having conversations about safety and decontamination doesn’t end at the shop with the customer; it also has to go to the insurance company.

“Insurance companies have to be introduced to this too,” Molina observed. “And it’s an expensive process – not in comparison to someone’s life but to an appraiser who thought they would only have to pay for a detail, it was expensive.”

She can’t stress enough how important it is to protect workers from exposure to the unknown. Molina believes there were traces of marijuana and possibly meth in the vehicle they had inspected. “They found the residue inside the locked trunk. It’s fortunate that none of our guys unlocked the trunk, so they didn’t come into contact with the illicit substances, but it’s concerning that the potential was there if we hadn’t taken precautions!”

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A.I. FOR DUMMIES

What is artificial intelligence (AI)? Cinema and literature depict computer programs and robots assuming human-like personalities and taking over the world. While most of us recognize the fictional aspect of the science-fiction genre, plenty of misconceptions and fears related to AI abound, even as it becomes an increasingly integral part of everyday business.

Although we often fall into the habit of viewing AI as “the future,” it is actually being used today in myriad ways that can benefit collision repair facilities – from damage analysis to improving the customer experience, AI tools offer the ability for shops to work smarter, not harder.

“AI is going to be the tool that becomes just like a part of us for the future,” insists Ryan Taylor (Bodyshop Booster). “We can hardly imagine doing a math test without a calculator nowadays. It’s going to be like that where we can hardly imagine doing our jobs without some form of AI assisting us. And it’s just starting, but we are going to see it coming faster in a big wave that impacts every area of our industry.”

“AI is currently assisting in many ways across the repair ecosystem,” James Spears (Tractable) adds. “AI helps identify repairable versus total loss vehicles at first notice of loss. It helps prepare faster and more accurate estimates using computer

vision, machine learning and AI, and it helps with coordinating booking the appointment to secure a repair. Presently in development is a way for a customer to call in a request for a repair quote, have a link texted to them and then book the repair without having to involve expensive admin staff from the shop.”

Insurers, information providers and vehicle manufacturers have already begun including AI in their workflows. “Today, AI is predominately being used with photos, estimating and total loss triage, and it is also being used in all aspects of a vehicle – from design, to manufacturing, ADAS systems, in cabin access and so

forth.” Frank Terlep (Opus IVS) points out. “In the future, AI will permeate all aspects of the collision repair industry, resulting in dramatic improvements in repair planning, repair procedures, diagnostics, marketing, ADAS, claims processing, collision center administrative processes and more. It is only a matter of time before AI is incorporated into the major repair procedure and service information platforms. When this does happen, it will be a HUGE benefit for collision repairers and the rest of the industry!”

But it’s important to realize that AI solutions are already available to benefit shops when it comes to administrative and customer service tasks, allowing technology to assist with marketing, sales, HR, virtual assistants, chatbots, language translation, logo, image and video creation and more.

“Tractable currently has the ability to assist shops with customer service 24/7,” Spears notes. “A shop using AI can now assist their customers when their competitors cannot. AI has the ability to text a link to the customer, deliver a high quality repair quote and even book the appointment.”

Taylor agrees that AI can play a significant role in customer interactions, providing a demonstration of CSR Sidekick, an AI “working” as the assistant to a customer service representative – AI expressed empathy and concern, asked the questions that CSR training teaches and even sold the shop’s certifications (try it yourself by dialing (432) 465-2978)!

Terlep suggests additional benefits AI can offer shops include, “Reduced administrative tasks and expense, improved productivity, customer service, better and faster decision making, faster and more effective digital marketing and much more. AI-driven chatbots can provide 24/7 customer support, answer frequently asked questions and guide customers through the claims process, enhancing customer satisfaction. It can also analyze customer data to offer personalized services and recommendations, such as preferred repair shops or tailored insurance policies.

“AI will be able to predict and document most major parts and components with photos of a damaged vehicle,” he continues. “AI will optimize repair shop workflows by scheduling tasks, managing inventory and ensuring that repairs are completed efficiently. Additionally, AI can analyze data from multiple sources to provide insights into shop and network performance, customer satisfaction and insurance claim trends, helping businesses make datadriven decisions. Another way that AI will help shops is facilitating the calibration and repair of ADAS components, ensuring that vehicles are properly restored to their preaccident condition.”

Of course, shops aren’t the only ones using AI. Many insurers around the world have already embraced this powerful technology for damage assessment, cost estimation, claims processing, fraud detection and risk assessment.

Providing support on the phone when a shop is busy or after hours is just one way that AI can provide shops with some administrative lift, according to Taylor. “In today’s environment, 41 percent of customers want to do business with you after hours, but your staff cannot work 24 hours a day; AI can. We’ve also found that, on average, shops lose nearly half of their customers on first contact –43 percent of callers never bring their car to the shop – so we created AI that can help improve that metric.”

AI can also help shops with sales by “taking a traditional estimate and helping customers fill in the blanks about why you’re the right shop, here’s what will happen next, etc,” Taylor says. “We are seeing a five to 10 percent increase to shops’ estimate capture rate by using AI because it helps customers understand why they’re making the right choice. AI can also upsell a customer. For example, it might notice a vehicle’s headlights are faded and offer to restore them.”

This technology offers myriad opportunities for shops that choose to embrace AI’s potential.

“Shops can now post on their website a link to secure images and customer info, and the AI will prepare the quote and book the appointment,” Spears lists. “Shops can also use AI to scan their estimate prior to submission to a DRP partner carrier so the submission will be approved in record time, leading to lower cycle times.”

“AI-powered image recognition systems will quickly and somewhat accurately assess vehicle damage from photos, reducing the time needed for manual inspection and increasing the accuracy of damage assessments,” Terlep shares. “AI algorithms will provide instant repair cost estimates based on the extent of the damage, historical data and parts pricing. This speeds up the claims process and ensures consistency in estimates. AI can and will also automate routine parts of the claims process, such as document verification and fraud detection, leading to faster claim approvals and payouts. Machine-learning models can analyze patterns and anomalies in claims data to detect potential fraud, reducing the financial impact on insurance companies, and AI models can assess risk more accurately by analyzing driving behavior, environmental factors and historical data, leading to more precise insurance premiums.”

When a vehicle owner informs their carrier that they’ve been in an accident, the insurer sends a link which prompts the customer to take some photos, and AI can generate a preliminary estimate. “Straight-through processing is expected to create more customer pay scenarios since AI can determine the size of the job and

help the customer find a body shop if the vehicle was significantly damaged (24 percent of accidents),” Taylor explains. “If the vehicle sustained small (44 percent) or medium (32 percent) damage, it will offer the customer the option of locating a body shop or depositing money in their bank account immediately.

“In Spain, one insurance company is now settling claims on small to medium damage in less than 12 minutes. There’s a lot of financial benefit to the insurance company when they can settle that quickly,” he adds, recommending shops start considering how they’re going to deal with customer pays as that trend continues to increase. He also warns that shops will see fewer total loss vehicles in the future as AI will be able to identify totals, bypass the shop and move the vehicle directly to the salvage yard, allowing the insurer to avoid teardown and storage fees.

Fears related to this type of change have caused many collision repair professionals to reject the possibilities of AI, but other fears have prevented shops from accepting the benefits AI can offer. Although some people have expressed the belief that AI will take jobs away, Spears assures, “It is quite the opposite – a person using AI will have hireability advantages that people not engaged in the technology will not. The time to start understanding how to

leverage AI is now.”

“Some common fears are related to inaccuracy, sometimes called ‘hallucinations.’ Other common fears are job elimination, loss of skills, less human interactions (already happening with social media), misinformation, cyber warfare, amplified bias and more,” Terlep contributes, stressing, “AI is a tool, just like other technologies, but it has the potential to be much more powerful and impactful than previous technologies.”

“AI has the potential to bring a lot of benefits to body shops,” Taylor agrees, but he warns, “If you’re not already figuring out how it can help you today, it’s going to become really difficult for you to be competitive. For example, CSR Sidekick can answer 100 calls per minute, works around the clock without taking breaks and has the ability to scale. It can take on such an extra load that it would be impossible for a single shop to hire people to compete.”

He offered a comparison of how long it takes to perform a series of tasks: DRP assignment first contact, selling the estimate, estimate follow up, repair booking, rental car booking, up-sales, e-signing documents, estimate and repair appointment reminders and postrepair follow-up and marketing. What would take a person

continued on pg. 41

AASP/NJ Members Celebrated as Collision

Warriors at Spartan 300 Symposium

Spartans – Greek warriors renowned for their abilities over 2,500 years ago – were known to be the elite among soldiers of their day. They did not take up arms only when battle raged; they trained constantly in order to be prepared when the need for war arose. And their formidable courage allowed no trepidation even when they were vastly outnumbered.

Auto body shops often indicate a feeling of being “the only one,” but similar to the warriors of ancient Greece, the Collision Advice Legacy Group Spartan 300 serves “to bring together like-minded individuals to take a stand for safe and proper repairs and change the course of history.” Last month, Mike Anderson (Collision Advice) and his team celebrated the best of the best during the 2024 Spartan Symposium, recognizing shops for everything from Customer Convenience to Estimating Accuracy, Scanning Compliance and more.

Congratulations to AASP/NJ member shops Autotech Collision Service (Sewell) and Ultimate Collision

Repair (Edison) on their awards!

Autotech Collision Service received three accolades: Refinish Repair Planning Accuracy and Body Repair Planning Accuracy as well as a spot within the “100 Percent Club,” based on the facility using 100 percent OEM parts during 2023.

“When you’re in the Spartans, you’re among a pretty elite group of shops, so to be selected for an award feels pretty amazing,” says Dean Massimini (Autotech Collision Service), whose sons Dean Jr. and Dan run the shop. “Everyone in the Spartan 300 Legacy Group is doing the right things for the right reasons. Most of these shops are heavily certified and promote consumer education, just like we do. We do things a certain way because it’s the right way to do it, not for the awards…but it feels pretty good to be recognized for our efforts.

“We’re really proud to be part of the 100 Percent Club because a small number of shops receive that recognition,” he adds. In fact, only 15 shops from around the country were

recognized with the 100 Percent Club award this year, including one other Garden State shop: Ultimate Collision Repair, owned by AASP/NJ Collision Chairman Jerry McNee.

“I’m honored that Collision Advice recognizes our facility for 100 percent OEM parts usage,” McNee shares. “I don’t take it for granted because our clients appreciate our services. Our clients trust us to do the right thing, and sometimes that means embracing healthy conflict. We are not design engineers; nothing will trump the OE repair procedures morally, ethically or legally, and we may be the only thing standing between the client’s safety and the insurer’s frugality, so we have to do the right thing for the clients who trust us. Being lazy, incompetent or uneducated isn’t an excuse. It’s not always easy, but it’s not actually hard; it’s simply what’s right.”

Learn more about Collision Advice’s Legacy Group Spartan 300 at collisionadvice.com/spartan-300

Autotech Collision Service received the Body Repair Planning Accuracy award, presented by Jeff Oldenettel & Danny Gredinberg from Collision Advice (pictured L-R: Danny Gredinberg, Dean Massimini Jr., Dan Massimini, Jeff Oldenettel)

(L-R) Dan Massimini, Mike Anderson and Dean Massimini

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What Do You Mean She Is Entitled to Overtime? She Is A Manager!

Like many shops, you probably have employees with titles like general manager, production manager, operations manager, office manager, office administrator and parts department manager. It’s often assumed that employees with manager or administrator titles can be classified as “exempt” from overtime; however, a title alone is not sufficient to satisfy the overtime exemption standards. Now – more than ever – this is an issue because, over the past two years, we have seen increased enforcement by the United States Department of Labor (USDOL) and the New Jersey Department of Labor (NJDOL) with respect to the misclassification of employees as overtime exempt.

If an employee is misclassified as exempt and only paid a flat salary for all work performed, the employer risks exposure to significant liability. Of course, this excludes technicians who are on a flat rate compensation plan. Misclassification is a violation of the Fair Labor Standards Act (FLSA) and the New Jersey Wage and Hour Law (NJWHL). The employer will have to pay the employee for any unpaid regular hours, as well as any unpaid overtime, plus a liquidated damages penalty to the employee up to 200 percent of the unpaid wages. If the claim is brought by an employee through private counsel, the employer can expect to have to pay the employee’s legal fees, as well. In addition to requiring the payment of the wages, the NJDOL can levy a fine up to $1,000, plus an administrative penalty of up to 20 percent of the wages owed.

Given this significant financial risk, it is important to ensure that your employees are properly classified. Let’s begin by discussing the criteria for overtime exemption and applicable exemption categories. First, to be exempt, an employee must be compensated on a salary basis and paid no less than $684 per week. The USDOL has proposed a new rule that would increase the minimum salary threshold to $1,059 per week. If this rule is adopted, it would go into effect at some point in 2024. Second, the employee must be paid their salary in full in any week the employee performs work, regardless of how many hours the employee works. There are some limited exceptions to this, such as being absent without permission or using sick or vacation time above what the employee has accrued or been provided.

Next, we move on to the exemption categories or what is known as the “duties” tests that would be applicable to an automobile repair shop.

The first exemption category is “Executive Exemption.” To qualify for the executive employee exemption, the worker must perform the following duties:

(i) The employee’s primary duty must be managing the enterprise or managing a customarily recognized

department or subdivision of the enterprise;

(ii) The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent, and

(iii) The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight.

Unless you operate a larger shop, there will likely only be one or two employees that can be classified as executive exempt; those employees typically are a general manager/production manager and the office manager, depending on the scope of his/her authority.

The second applicable exemption category is “Administrative Exemption.” To qualify for the administrative employee exemption, the worker must perform the following duties:

(i) The employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers; and

(ii) The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

The first prong of this administrative exemption test is straightforward; however, it is the second prong where employers often try to include an employee who may not be eligible. The exercise of discretion and independent judgment implies that the employee has authority to make an independent choice, free from immediate direction or supervision; however, employees can exercise discretion and independent judgment even if their decisions or recommendations are reviewed at a higher level. Thus, the term “discretion and independent judgment” does not require that the decisions made by an employee have a finality that goes with unlimited authority and a complete absence of review. The decisions made as a result of the exercise of discretion and independent judgment may consist of recommendations for action rather than the actual taking of action.

Factors to consider when determining whether an employee exercises discretion and independent judgment with respect to matters of significance include but are not limited to:

• whether the employee has authority to formulate, affect, interpret or implement management policies or operating practices;

• whether the employee carries out major assignments

in conducting the operations of the business; whether the employee performs work that affects business operations to a substantial degree;

• whether the employee has authority to commit the employer in matters that have significant financial impact;

• whether the employee has authority to waive or deviate from established policies and procedures without prior approval;

• whether the employee has authority to negotiate and bind the company on significant matters; and

• whether the employee investigates and resolves matters of significance on behalf of management.

Satisfying one or two of these factors is not dispositive; the NJDOL or a reviewing court is going to look at the totality of the employee’s responsibilities and authority. Generally, clerks and bookkeepers will not satisfy the administrative exemption. With respect to the other positions within the shop, estimators and client/customer relations employees will generally not be exempt; however,

a parts manager can be exempt, depending how many employees she/he manages and the discretion and independent authority that employee has with respect to the operation of the department.

In order to ensure that your employees are properly classified, we recommend creating and maintaining job descriptions that accurately reflect the specific job duties and responsibilities of each position. This will assist you in determining whether the employee satisfies the examination standards. For non-exempt employees, even if they are paid on a salary basis, the employer must maintain an accurate record of all hours worked and pay those employees an overtime premium for all hours worked that exceed 40 hours per week. Of course, if you have any questions, you should always contact an attorney experienced in wage and hour compliance law.

Brent R. Pohlman is a partner in the labor and employment practice group at Mandelbaum Barrett PC, based in Roseland, NJ. Contact him via email at bpohlman@mblawfirm.com

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An Investment in Success: Wieländer+Schill Welding Equipment Provides Precision, Peace of Mind

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

continued from pg. 10

Where the hell did all the hair that covered the middle of my head disappear to???

You know what? I think I found out. The hair didn’t fall out of my head. No, sir. It retreated into my head. And now it comes out my nose and my ears!

Seriously, what kind of nasty trick is God playing with this deal? I mean, if your hair grows on your head, you cut it, trim it, style it, etc. What exactly do you do with nose and ear hair? And believe me, I have tried all the wonder products. Manscape. Norelco. Schick. Battery-free. Waterproof. Bluetooth. (Bluetooth? Yes, just what I need is to have music playing while I am slicing the insides of my ears and nose to pieces.) And most of these come with more attachments than a vacuum cleaner (maybe I’ll try one of those!).

NOTHING WORKS.

First of all, it’s impossible to see in your ear or up your nose. You look in the mirror and turn your head sideways, up and down, around and around just trying to get the right angles. I make myself f#$king dizzy. I feel like Stevie Wonder giving himself a shave.

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So you just shove these things in your ears or up your nose and hope for the best. But it never works. I stood there in front of the mirror for an hour trying to get it all. And every goddamn time I think I’m done, I roll my earlobe and still feel (and hear!) those nubs. It drives me crazy!

It’s so crazy when you think back. Full head of hair? No hair in nose or ears. Balding head of hair? A Jumanji jungle growing out of them.

Isn’t growing older hard enough?

As for my scalp, the woman who cuts my hair advises me to just shave it all off à la Michael Jordan. Well, that may sound great in theory, but I’m much more likely to resemble the guy from the Monopoly game than Michael Jordan. So, for now anyway, I‘ll stick with the George Costanza/Kevin from The Office hairdo. As long as it makes my wife laugh, I’m good.

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ARANJ Board of Directors

David Yeager - EL & M Auto (800) 624-2266 / elandmauto@aol.com

Ed Silipena - American II Autos (609) 965-0987 / esilipena@yahoo.com

Norm Vachon - Port Murray Auto (908) 689-3152 / portmurrayauto@yahoo.com

Dillon Rinkens - East Brunswick Auto (732) 254-6501 / ebautonj@comcast.net

ARANJ Officers

President - Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 / aceautonj@comcast.net

1st Vice President - Daryl Carman Lentini Auto Salvage (908) 782-4440 / darryl@las-parts.coms

2nd Vice President - Mike Ronayne Tilghmans Auto Parts (609) 723-7469 / tilghmans@snip.net

Past President - Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 / dirkesauto@gmail.com

ARANJ

The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs

We would like to thank the ARA for allowing us to write a monthly article for the past 20 years.

Wharton Group has been involved with the association since 1991. Wharton has merged with Alkeme, a California-based company, with over 40 locations, 700 employees and 400 insurance carrier relationships. Wharton is their only agency in NJ and will continue to be a full service office, providing business, environmental, personal, life and health coverage through our insurance carriers. Some of the industries we serve are amusement, auto dealerships, auto dismantling, construction, entertainment, gaming, hospitality, scrap metal dealers, sports, trucking and many more.

Over the years, we’ve written articles on insurance topics, such as environmental/pollution liability, workers’ compensation, automobile, dealer plates, general liability, garage keepers’ liability, safety tips, developing safety manuals, health, life and long-term care. We will continue to discuss the nuances of these topics and newer topics, such as cyber liability, data breach, intellectual property, identity theft and other technology issues.

Whether you’re a client of ours or not, if you have any questions or concerns on any insurance issues, please do not hesitate to call me.

800-221-0003 (ext. 1320) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

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over four hours to complete manually, AI can accomplish in 30 seconds. Multiply that by 100 customers, and human staff will have invested 51 days compared to AI’s 49 minutes

Taylor’s recommendation to shops? “Learn to use AI to your advantage.”

So, how can repair professionals move forward with using AI technology to their benefit?

“To start, repairers should jump in and learn as much as they can about how AI works,” Terlep offers. “They should ask their suppliers and other industry personnel what they see and think about it and how they are planning to implement AI in their solutions. Also, get started by using the commercially available AI platforms.”

“It’s easy to begin an AI journey,” Spears suggests. “I would recommend that they set a business goal such as faster customer response, lower cycle times, better expense margins or more customer conversions, then select an AI partner like Tractable to begin to learn about the technology and put it into production. They should start now because those businesses that use AI outperform those that do not. I believe it’s a leader’s responsibility to provide their team and business with every advantage they can to be successful.”

“AI is only going to move faster, not slower, and right now, it’s the worst that it’ll ever be,” Taylor stresses. “It is moving exponentially faster and getting better all the time. Shops that plan to be in business and want to be successful for many years to come need to figure out how to work this strategy in; this technology is only going to become more important to shops and the customers who deal with those shops because AI offers an unparalleled level of convenience.”

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