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ATD Insider | A service of the American Truck Dealers and the Public Affairs Group of the National Automobile Dealers Association
October 11, 2017


Top Stories In This Issue
NADA/ATD to Give Input in Supreme Court Case
By Steve Parker, October 2017

Perhaps it’s irony that a term of the Supreme Court begins, by statute, on the first Monday in October, and this October an important issue for our industry is about to get its day in court ... again. The outstanding case that will be heard by the Supreme Court this month is: Do dealership service advisors fall within the federal “salesmen, partsmen and mechanics” overtime pay exemption under the Fair Labor Standards Act?

Recently, the Supreme Court granted certiorari in the case Encino Motorcars, LLC vs. Navarro. This is the second time that the Supreme Court has accepted an appeal involving Encino, a very rare occurrence. As we know, the Fair Labor Standards Act exempts “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles” from an employer’s general obligation to pay overtime to employees who work more than 40 hours per week. The court will review a January 2017 decision by the Ninth Circuit Court of Appeals finding that the exemption did not apply to dealership service advisors. The ruling was in direct conflict with several other federal and state decisions.

As with many significant issues involving our business, NADA/ATD is providing support to the dealers litigating Encino. The hope is that the Supreme Court will resolve this issue in favor of the dealer defendants—and for all those dealers who have applied the overtime exemption to their service advisors for decades. Our Association is also working directly with the state dealer associations in the Ninth Circuit to file a “friend of the court” brief on behalf of all dealers. Briefing in the case will begin later this year with oral argument set for some time in 2018.

In addition to the courts, NADA/ATD has also devoted much of its efforts to working with federal regulatory agencies. These agencies—the U.S. Department of Transportation, the U.S. Department of Labor, and the Internal Revenue Service to name a few—refine, implement and enforce the laws that Congress passes. The regulations that they adopt can have lasting repercussions for both auto and truck retailers—just like the case today.

There will also be a decision coming out of the U.S. Department of Transportation and its Electronic Logging Device (ELD) ruling. As we know, the Federal Motor Carrier Safety Administration (FMCSA) issued new rules in 2015 that required the use of electronic logging devices in commercial motor vehicles. The FMCSA has mandated that by the end of this year, non-exempt motor carriers and drivers must begin to use ELDs. Moreover, only compliant ELD devices/applications may be used to record Hours-of-Service by December 2019. This will be an important change affecting our customers.

ATD will soon be circulating a detailed fact sheet to help all our truck dealer members prepare for this new ruling and transition. Without a doubt, the rulemakings coming out of Washington, D.C., deeply affect our consumers and the very fabric of how truck dealerships operate, employ staff and sell products. On behalf of ATD, I encourage all our members to stay vigilant and informed on all the latest issues. ATD is informing federal regulators about the marketplace where truck dealers compete. Our goal is to help them better understand the potential impacts of their mandates so that their rules, in turn, improve our industry for the future.

By the end of this month, we anticipate celebrating two things—Halloween and the start of what we hope will be favorable litigation before the Supreme Court. The former event is cloaked in its veil of mystery and the unknown, as is the latter. ATD is working hard to make sure that the events of October yield a sweet surprise for everyone in the future.

Parker is chairman of ATD, a division of NADA in Tysons, Va., which represents 1,800 heavy- and medium-duty truck dealerships. He is president of Baltimore Potomac Truck Centers in Linthicum, Md., which operates five full-service commercial truck dealership locations with Mack, Volvo and Hino Trucks franchises in Maryland and Virginia.

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ATD Show 2018: Registration Now Open

Online registration and hotel selection for ATD Show 2018 in Las Vegas is now open. ATD member dealers and their managers who register by Nov. 17 will receive an early-bird discount of $100 from the onsite registration rate.

The ATD Show runs concurrently with the NADA Show from Thursday, March 22, to Sunday, March 25.

Keynote speakers are ATD Chairman Steve Parker (Friday’s general session) and incoming ATD Chairwoman Jodie Teuton (Saturday’s general session). As cosponsors of “Truck Dealer of the Year” with ATD, David Moniz, publisher of Heavy Duty Trucking, and Larry Kettler, CEO of Procede Software, will present the award during Friday’s general session.

Jim Meil, Kenny Vieth and Steve Tam from ACT Research, the authors of a new study on the future landscape of commercial truck dealerships, will discuss the findings at Saturday’s general session.

The ATD Show offers workshops and education sessions led by industry experts that deliver ideas to improve dealership operations. ATD attendees will also have access to NADA programs, educational sessions.

Keynote speakers at the NADA Show are Mark Scarpelli, 2017 NADA chairman, and Nick Saban, head coach at The University of Alabama (Friday’s general session); Wes Lutz, 2018 NADA chairman-elect, and John Krafcik, CEO of Waymo LLC (Saturday’s general session); and Robert O’Neill, team leader at Naval Special Warfare Development Group (Sunday’s inspirational session).

The ATD Show now offers a new, streamlined schedule. The ATD Expo, along with the general sessions, make meetings and workshops, will be held at the Westgate Las Vegas Resort & Casino. The ATD headquarters hotel is Encore at Wynn Las Vegas.

At the ATD Expo, exhibitors will offer an array of innovative products and services with real solutions to the challenges facing commercial-truck dealerships.

For more information or to register, visit
Source: ATD/NADA Public Affairs

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Trump to Outline How Tax Reform Benefits Truckers

President Donald Trump’s speech on tax reform later today is expected to primarily focus on the trucking industry, a senior White House official said. The president will spotlight how key tenets of his tax plan — notably cuts for the middle class and repeal of the federal estate tax — could be beneficial to trucking companies, the official said. “Truckers will be major beneficiaries of the president’s tax plan,” the official said. “Truckers are in many ways the lifeblood of our economy. When trucks are moving, that means the economy is moving.”
Source: Transport Topics

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FMSCA to Exempt Short-Term Truck Rentals from ELD Rule

The Federal Motor Carrier Safety Administration is expected to announce on Oct. 11 that it will grant an exemption from being required to use an electronic logging device to “all drivers of property-carrying commercial motor vehicles rented for eight days or less, regardless of reason.” The exemption will apply to the ELD mandate that kicks in on Dec. 18 — just 10 weeks away. FMCSA made it clear that drivers who will operate under this short-term rental exemption will remain subject to the standard hours-of-service limits and so will have to maintain a paper record of duty status (RODS) if required, and maintain a copy of the rental agreement on the vehicle. The exemption results from a petition filed with the agency by the Truck Renting and Leasing Association.

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Upcoming ATD Academy Seminar: Advanced Parts Management -- Discover Profit Potential and Improve Performance

The "Advanced Parts Management" seminar will be held at the ATD Academy in Tysons, Va., from Oct. 30 to Nov. 3, 2017. During the weeklong seminar, commercial-truck experts will help participants transform their parts department into an industry leader. Participants will analyze and discuss their dealership’s performance. The ATD Academy offers instructor-led training programs developed to prepare current and future dealership leaders. Click here for more details and to enroll. For additional questions, call 800.557.6232 or send an email to
Source: ATD Academy

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Top Stories
NADA/ATD to Give Input in Supreme Court Case
ATD Show 2018: Registration Now Open
Trump to Outline How Tax Reform Benefits Truckers
FMSCA to Exempt Short-Term Truck Rentals from ELD Rule
Upcoming ATD Academy Seminar: Advanced Parts Management -- Discover Profit Potential and Improve Performance



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