AASP-MN News July 2015

www.grecopublishing.com

July 2015

PLUS:21st Annual Golf Outing Highlights

New Member Benefit

AASP-MN’s Hard Fought Legislative Battle Goes Down to the Wire

AASP0715.qxp_AASP News 7/7/15 3:30 PM Page 1

AASP-MN News2 July 2015


AASP-MN News July 2015 3




CONTENTSVol. 23 No. 7

AASP of Minnesota is an association ofindependently-owned automo-tive service businesses and industry suppliers dedicated toimproving the state’s automo-tive service industry and thesuccess of its members.

AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone:612-623-1110 • Fax: 612-623-1122 email: [email protected] • website: aaspmn.org. All rights reserved. To keep its readers better informed, AASP-MN News allowsits columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing,Inc. Cover image © www.istockphoto.com.

AASP-MN BOARD MEMBERS 2015 - 2016

PRESIDENTTom Gleason

IMMEDIATE PAST PRESIDENTJerald Stiele

SECRETARY-TREASURER Greg Kasel, AAM

COLLISION DIVISION DIRECTORJim Siegfried, AAM

MECHANICAL DIVISION DIRECTORWayne Watson

ASSOCIATE DIVISION DIRECTORKevin Martin

COLLISION SEATSJoyce WeinhandlWill Latuff

MECHANICAL SEATMars Overlee

STAFFEXECUTIVE DIRECTORJudell Anderson, CAE, AAM

OFFICE ADMINISTRATORJodi Pillsbury

MEMBERSHIP COORDINATORTom Kluver

PUBLISHED BY: Thomas Greco Publishing, Inc.

244 Chestnut St., Suite 202 Nutley, NJ 07110PHONE: 973-667-6922 • FAX: 973-235-1963

PUBLISHER: Thomas Greco ([email protected])DIRECTOR OF SALES: Alicia Figurelli ([email protected])MANAGING EDITOR: Jacquelyn Bauman ([email protected])EDITOR: Joel Gausten ([email protected])ART DIRECTOR: Lea Velocci ([email protected])OFFICE MANAGER: Donna Greco ([email protected])

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ASSOCIATE DIVISION DIRECTOR’S MESSAGE ..........................................6Investments for Changeby Kevin Martin, AASP-MN Associate Division Director

LEGISLATIVE UPDATE ......................................................................7Imbalance in Relationship with Insurers Persistsby Kevin Walli, AASP-MN Lobbyist

LOCAL NEWS ................................................................................8

INSURANCE I.Q. ............................................................................11Payroll: What to Include in Your Workers’ Compensationby Dennis Spindler, CBIZ

MEMBER BENEFIT ..........................................................................12Hiring Good Employees with Assessment Associates International

NATIONAL NEWS ............................................................................17

COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) ........21Air Quality Permitsby Janet L. Keyes, CIH, C.H.E.S.S., Inc.

CASH IN ON YOUR MEMBERSHIP!........................................................26The Partner You Need to Do Your Image Proud


August 5, 2015St. Paul Saints Outing

CHS Field, St. Paul

August 11, 20158th Annual Pro Paint Trade Show

Orchard Banquet Center, Baldwin, WI

ADVERTISERS’ INDEX

aaa Auto Parts ............................................................24AmeriPride ................................................................13Assessment Associates Internatonal ..........................13Axalta Coating Systems..............................................OBCBuerkle Hyundai ........................................................16CBIZ ..........................................................................IFCC.H.E.S.S., Inc. ..........................................................21Choice Auto Rentals ..................................................16Database Enhancement Gateway ................................6Dentsmart ..................................................................19Inver Grove Honda / Inver Grove Toyota ............................3Jack McClard ............................................................3Keystone ....................................................................4Lowell’s PCE ..............................................................23Maplewood Toyota ....................................................22

Meadowbrook Insurance ............................................IFCMills Parts Center ......................................................18Morrie’s ....................................................................9Motorwerks BMW ......................................................IBCMotorwerks Mini........................................................IBCMPA..................................................................................................14-15Pam’s Auto ................................................................20Proven Force..............................................................22Rosedale Chevrolet ....................................................18Roseville Chrysler ......................................................18Straight & Square ......................................................4Thexton Manufacturing ..............................................20Toyota Group..............................................................25UFG............................................................................IFC

UPCOMING EVENTS

For more information, contact the AASP-MN office at 612-623-1110or visit the Association’s website, www.aaspmn.org.


Refinish Underside in CCC – Apron assemblies do include refinishing the underside, as per inquiry number 7970, but floors and roofs DO NOTinclude refinish the underside, per inquiries 3985 and 6071.Audatex A/C Lines – When replacing an A/C line in Audatex, the labor time allocated is for basic disconnect and connect of the line. The Auda-tex labor does not account for additional tasks that may be needed for the actual placement of the line through the vehicle. That would need to be amanual entry as per DEG Inquiry 4818.Wash Vehicle – Do you wash or clean a vehicle before repairs? This is a NOT included operation in CCC and needs to be added to the estimatewith a labor amount. DEG inquiry 6948.Foam – The labor for application or removal of foam is not included in CCC or Audatex and requires a manual line for the labor amount needed.Materials for the foam are not included. See inquiries 2481 and 5223.Reset of Electrical Components – The resetting of electrical components is a NOT included operation in Audatex, CCC and Mitchell. Air baglights, initializing of a power window, and steering angle sensors are just a few examples of items that require a manual line for the labor amountneeded. See inquiries 7465, 6710, 5845.You can view these tips and others on the DEG website at www.degweb.org.

OEMs are currently on a running rate of introducing approxi-mately 75 significant engineering changes per year, according toI-CAR’s Jason Bartanen. Several examples on the collision sideare the influx of back-up cameras that will now be in every makeand model this year and the influx of aluminum and other special-ized materials being introduced with the intent of improving fuelconsumption and safety to meet the CAFE standards. Changes this rapid put the AASP-MN membership in a per-petual state of playing catch up. In some cases, the equipmentneeded can be easily accessed, and at low prices; in other cases,the investment becomes significant and can run in the 6-figurerange. As a shop owner, that creates an incredible number of challenges, such as:

1. How do I afford the equipment? 2. Is it necessary? 3. Will I be able to recoup the investment? a. Do I eliminate or reduce any cost within my operation, such as decreased energy consumption? b. If operating at capacity, does the equipment allow me to increase productivity, pushing additional work through and generating additional revenue? 4. What effect will it have on my business if I don’t purchase the equipment? 5. What are the ongoing costs associated with the equipment? (Sam Deering from Lowell’s PBE Equipment was sharing with me that Chief Equipment now reports that roughly 25 percent of their revenue is derived from their

data segment. Other analytic/measuring systems necessary in both the mechanical and collision side report similar statistics.) And on it goes… While technology can be fantastic, proper preparation be-comes critical. Questions to ask before purchasing:

1. What is my goal? 2. What is my budget? 3. How long will it take to achieve a breakeven point or

better yet, a profitable return on the investment? 4. How will I pay for it to maximize the investment? 5. How will I handle the expense from a tax standpoint?

We recently went through the process of replacing a booth.What an educational experience! As we went through the process,we used much of this line of thinking. While we certainly are notequipment experts, what we did learn was that there are a numberof tremendous resources available that are willing to serve as ad-visors to help us make what we felt was a strong, educated deci-sion. The opportunity also served as a reminder of the value of ourassociation, AASP-MN. The members we reached out to werequick to offer their advice, experiences and wisdom. If you findyourself in the market for a major purchase, I encourage you tocall fellow AASP-MN members as part of your research.

6 July 2015

Investments for Change

ASSOCIATE DIVISION DIRECTOR’S MESSAGE

by Kevin Martin,AASP-MN Associate Division Director

ESTIMATING TIPS

AASP-MN News



Imbalance in Relationship with Insurers Persists

LEGISLATIVE UPDATE

by Kevin Walli,AASP-MN Lobbyist

Despite our best efforts, we could notconvince the Legislature to adopt the re-forms proposed by AASP-MN in the colli-sion claims marketplace. We did findstrong allies and are encouraged by havingboth DFL and Republican legislators whohave stood up for the repair industry. Senator Ron Latz (DFL-St. LouisPark) was our Chief Author in the Senate.He overcame challenges in the SenateCommerce Committee to move the bill tothe Senate Floor. The House CompanionBill was never scheduled for hearing inthe House Commerce Committee. OurChief Author, Representative Bob Loonan(R-Shakopee) continuously pressed for ahearing, as did AASP-MN. However,Chairman Joe Hoppe (R-Chaska) wantedthe parties to find a “peace in the valleycompromise” before he would grant ahearing on the bill. However, the insurance industry con-tinuously refused to come to the table. Atno time did any insurance company offerany discussion – much less compromise –of any type. In the meantime, AASP-MNdid offer changes to our bill that were in-corporated into the Senate Omnibus Jobsand Energy Bill which included Depart-ment of Commerce budget and policy is-sues. The AASP-MN provision did threethings: • Prohibits insurance companies from steering their insureds to particular shops for estimates. • Prohibits insurers from specifying the use of a particular electronic estimating system. • Prohibits the use of a particular software program for the procurement of parts.

On the Senate Floor, we faced a chal-lenge when an amendment was offered todelete the AASP-MN language from theOmnibus Bill. Senator Latz and SenatorJohn Pederson (R-St. Cloud) both spokeeloquently about the importance of sup-porting our main street small businesses.

The speeches by Senator Latz and SenatorPederson resulted in the retention of theAASP-MN language by a two-to-one mar-gin in the Senate. A second amendment that would haverendered our provisions meaningless wasalso offered and defeated. The amendmentwould have allowed insurers to require aparticular parts procurement software orelectronic estimating system in circum-stances where a repair shop “voluntarily”entered into an agreement with an insurer.The Senate also rejected this amendment. In the House-Senate ConferenceCommittee, named to resolve differencesbetween the House and Senate Jobs andEnergy Bills, we had strong support on theSenate side to retain the AASP-MN provi-sions. Unfortunately, we had an equallysteadfast House position opposing the pro-visions in the form of House CommerceChair Joe Hoppe who had been named oneof the five House Conferees. The House Co-Chair of the Confer-ence Committee was Representative PatGarofalo (R-Farmington), with whom wemet to provide a briefing on the repair in-dustry issues. Representative Garofalowas sympathetic to our position, but wasnot inclined to accept the Senate languagewithout securing something in return. Ex-actly how the behind-closed-doors negoti-ations played out, we will never know, butour provision did not come through in thefinal bill that was considered at the veryend of the Regular Session of the Legisla-ture. We renewed our efforts for the Spe-cial Session. We contacted our keysupporters in the Senate to see whetherthey could bring the AASP-MN provisionsback into the Omnibus Jobs and EnergyBill. Again, all of the discussion on whatwas to be included in the Special Billwhich was conducted behind closed doorsand we had very little opportunity to influ-ence the contents of the final bill. Suffice it to say that very few itemsmade it into the bill that were not part of

the package that was passed by the Legis-lature and vetoed by Governor Dayton,thereby resulting in the need for the Spe-cial Session measure. Our work this summer will involvethanking those legislators who have beenstrong supporters of our initiative. We alsoneed to work on those who have been un-willing to help. We need to impress upon the skepticsthe fact that we have made changes andneed those changes to be acknowledgedand acted upon. We want our day in court,so to speak. It is fundamentally unfair forone legislator to block a measure that hasstrong support among his colleagues. We need to reinforce the strong sup-port that we found in 2014 and 2015 andbuild on that strength as we prepare for the2016 Session. We have our work cut out for us inthe coming year. The 2016 Session will bethe shortest Legislative Session in recenthistory. The Legislature will not conveneuntil March 8 and it must adjourn by May16. We will face a limited LegislativeAgenda in 2016, but we intend to press theissue and work for enactment of ouragenda with the help and strong support ofAASP-MN members all across the Stateof Minnesota.

Check out the new & improved

AASP-MN website at

www.aaspmn.org!


AASP-MN’S HARD-FOUGHT LEGISLATIVE BATTLEGOES DOWN TO THE WIRE

With less than 24 hours before the constitutionally-mandateddate for adjournment, AASP-MN provisions to close a steeringloophole and prohibit insurer mandates for specific parts procure-ment software programs and electronic estimating systems werestill on the table at the Minnesota State Capitol. However, after alate-night collapse in negotiations between conference committeemembers and with time running out, virtually all policy provi-sions – including those proposed by AASP-MN – were strippedfrom the Jobs, Economic Development and Energy Finance bill.That bill passed the House with just seconds remaining in the2015 Legislative Session and was subsequently vetoed by thegovernor. (See Kevin Walli’s article on page 7 for more info.) AASP-MN extends its sincere appreciation to chief lobbyistKevin Walli and his staff, as well as its 2015 support lobbyist,Mike Beard, for their hard work and long hours on the Associa-tion’s behalf. Also, a special thanks to the many AASP-MNmembers who met with, made phone calls and sent emails totheir legislators requesting support for the Association’s efforts.Without these efforts, the proposal would certainly not havemade as much progress as it did. The 2016 Legislative Session convenes on March 8, 2016. Inthe meantime, AASP-MN plans to regroup, reassess and rechargeto fight yet another day for its members and the entire collisionrepair industry.

AASP-MN ANNOUNCES NEW MEMBER BENEFIT

Recognizing the significant and important role that hiring theright people plays in members’ success, AASP-MN recently an-nounced a new member benefit program designed to facilitateand enhance hiring decisions. The Association’s Auto EmployeesAssessment System, offered in conjunction with Assessment As-sociates International (AAI), will help AASP-MN members iden-tify employees that not only have the technical skills for the job,but also good motivation, work habits and people skills. Members who utilize the program will have job candidatescomplete an appropriate questionnaire for the position beingfilled – technician (including mechanical, body or painter) orservice advisor/estimator. Candidates are assessed on motivation,attitude, dependability, initiative and other character traits. As-sessments are completed over the Internet, at any time of day ornight and results are emailed to the employer within minutes ofquestionnaire completion. Scores are then presented comparingthe candidate to current, successful AASP-MN member employ-ees. Members can use the information to identify candidates thatare likely to be a good fit with their culture and work environ-ment. The AASP-MN assessment tool will be particularly effectivebecause it has been customized for the automotive service indus-try. In 2014, AASP-MN members participated in a study to de-velop industry-specific benchmarks for the traits and behaviorsof high-performing employees. The data collected was used to

create the new tool, designed with the goal of improving mem-bers’ hiring and performance evaluation processes. For additional information about this new AASP-MN mem-ber benefit program, see page 12.

21ST ANNUAL AASP-MN GOLF OUTING HIGHLIGHTS

On Tuesday, June 16, 122 golfers and 28 sponsoring compa-nies enjoyed a beautiful day golfing and socializing at the 21stAnnual AASP-MN Golf Outing at Tartan Park Golf Course, LakeElmo. Competition was fierce, with two teams logging a final scoreof 62 (10 under par). Based on a tiebreaker hole, the team fromHopkins Auto Body was declared the winners. Team memberswere: • Jerald Stiele, Hopkins Auto Body • Dave Williams, Hopkins Auto Body • Spencer Smith, Smith Import Motors • Matt Koehler, Kroll Ontrack The team from LKQ placed second, represented by teammembers Jim Dow and Randy Johnson from LKQ/Keystone andLaura and Jesse Jacobson from Heppner’s Auto Body.


LOCAL NEWS

1st place team, L-R: Jerald Stiele, Spencer Smith,Dave Williams, Matt Koehler.

2nd place team, L-R: Jim Dow, Jesse Jacobson,Laura Jacobson. (Not pictured: Randy Johnson.)


July 2015 9AASP-MN News

A fundraiser to support the association’s Po-litical Action Committee (PAC) was held duringthe event and raised $725 for the PAC fund.AASP-MN’s PAC fund provides access and re-sources to legislators who support the automo-tive service industry and advocate its positions. A special thanks to the following companiesfor sponsoring holes during the event: • aaa Auto Parts • ABRA Auto Body • AmeriPride Services • Auto Value & APH • Autoshop Solutions • Axalta Coating Systems • BASF • CBIZ AIA • Enterprise Rent-a-Car • Heartman Insurance • Hertz Corporation • Inver Grove Ford Lincoln • LKQ/Keystone Automotive • Lowell’s Performance Coatings • Meadowbrook Insurance • Midwest Parts Advantage • Mitchell International • National Coatings & Supplies • O’Reilly Auto Parts • Pam’s Auto, Inc. • PPG Automotive Finishes • Pro Paint Metro • R.O. Writer • Schmelz Countryside SAAB/VW • Sherwin-Williams • Suburban GM Parts • United Fire Group • Wakeman Equipment

For additional information, please contactthe AASP-MN office at (612) 623-1110 or 800-852-9071 or online at www.aaspmn.org.

JERRY’S BODY SHOP IN MANKATO NOW ABRA FRANCHISE

ABRA Auto Body & Glass announced theopening of its newest franchise repair center inMankato, Minnesota. The franchise is owned and operated byJerry and Geralynn Kottschade who are well rec-ognized in the industry and community as opera-tors of Jerry’s Body Shop. ABRA operates 54 independently-ownedfranchises and 231 company-owned locations fora total of 285 in 22 states.

continued on page 10


LOCAL NEWS

10 July 2015 AASP-MN News

AASP-MN’S BANKCARD PROGRAMNOW INCLUDES

AMERICAN EXPRESS

Did you know that the AASP-MNBankcard program now allows you to ac-cept American Express cards for payment?In fact, American Express has even re-duced its rates to make processing the cardmore affordable.

The AASP-MN BankCard programstrives to provide the lowest possible rateswith the best possible service. For details,contact Mac Hardin at 800-999-4399 or612-750-2988.

ATTENTION R.O. WRITER USERS!

AASP-MN will host a 2-day R.O.Writer training workshop, September 30 &October 1, in the Twin Cities metro area.The workshop will be presented by R.O.Writer software expert, Paul Allen Stewartand covers:

• Software usage and functionality- Understand how to easily navigate all areas of the software

- Optimize estimating tool for all jobs and vendor parts lookup

- Accounts payable - Accounts receivable- Inventory- Scheduling- Configuration- Marketing and reporting modules- Tricks and tips to make the system super fast

- Best practices for part returns, cores and warranty

• Business analysis• Marketing & follow-up• Service center processes and

procedures

This highly-rated workshop is not justanother training class. It is designed toprovide a new level of understanding ofthe tools and capabilities built into yourR.O. Writer software program. The work-shop includes recommended setup andbest practices, as well as building a busi-ness and marketing plan using your data.Owners, managers and service advisorswill leave excited about using all of thetools available in the R.O. Writer software.

For additional information, visit theAssociation’s website, www.aaspmn.org.

PRO PAINT 8TH ANNUALTRADE SHOW

Pro Paint will hold its 8th AnnualTrade Show and Celebration, August 11,at the Orchard Banquet Center, Baldwin,Wisconsin. The buying trade show willfeature 100+ product lines, many offeringspecials and discounts to attendees.

FREE FOOD, REFRESHMENTSAND DOOR PRIZES!

CHECK OUT THE ASSOCIATION’S NEW AND IMPROVED WEBSITE

Easy navigation? Check.Mobile-friendly? Check.Contemporary look and feel? Check.Tons of info? Check! Here’s what you’ll find on AASP-MN’snewly-redesigned website…

Information about: • Association news • Member benefit programs • The Get to Know Your Neighborhood Auto Repair Pro campaign • Current and past legislative activities & find your legislator • Industry training and upcoming events

Member shops, tools and equipment:Search our database to find a member

shop in your area, see what diagnostic orother equipment they own, what repair in-formation they subscribe to, which man-agement system they use, and more! This extensive database was designedto help members connect with and be a re-source to other members. Be sure to login and complete yourmember profile!

Resources/links: • Regulation of Claims Practices & Prohibition on Insurers’ Statutes • Truth in Repairs Act • Insurer Unfair Claims Practices Report • MN Motor Vehicle Damage Disclosure & Reporting requirements • P-Pages, DEG & other estimating resources • OEM service information • MPCA Fact Sheets

Sample documents: • Complaint Letter to the Department of Commerce • Loaner Car Agreement • Repair Authorization form • Assignment of Insurance Proceeds • Sheriff’s sale instructions and documents

Consumer info: • Find a shop • Auto insurance claims & claimants’ rights, “Nuts & Bolts” brochure • Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) • Motor Vehicle Service Contracts: FTC, MN Attorney General and Consumer Reports • FTC Consumer Alerts on auto warranties and warranty scams • Automotive career and scholarship info, including links to state college automotive programs

Other: • AASP-MN News – Check out the current or past issues of the Association’s monthly magazine • Lending Library – AASP-MN’s lending library consists of a number of the AMI self-study courses and other materials free for members to use • And much more! Please take the time to check out theresources available to you from AASP-MN.

continued on page 24



INSURANCE I.Q.

We often get questions at audit time on workers’ compensa-tion. I recently received a question about what has to be includedin calculating the payroll for an owner. I did some research withthe Minnesota Workers’ Compensation Insurers Association(MWCIA). Here is what they sent me from their manual of whatyou should include or exclude from your payroll. A. Premium Basis Premium is calculated on the basis of the total payroll paid or payable by the insured for services of individuals who could receive workers’ compensation benefits for work-related injuries as provided by the policy. Exceptions: Premium for domestic worker classification is calculated on a per capita basis instead of payroll. Domestic workers are employees who perform household duties. (Refer to rule 3-C.) A per capita classification uses the number of workers rather than payroll to measure exposure.

B.Payroll For purposes of this article, payroll means money or substitutes for money. 1. Includes a. Wages or salaries (including retroactive wages or salaries). b. Total cash received by an employee for commissions and draws against commissions. c. Bonuses including stock bonus plans. (Refer to rule 2-D.) d. Extra pay for overtime work except as provided in Rule 2-C-2. e. Pay for holidays, vacations or periods of sickness. (Refer to rule 2-G for allocation of payroll for employees subject to more than one classification code.) f. Payment by an employer of amounts that would have been withheld from employees to meet statutory obligations for insurance or pension plans such as the Federal Social Security Act or Medicare. g. Payment to employees on any basis other than time worked, such as piecework, profit sharing or incentive plans. h. Payment or allowances for hand tools or handheld power tools used by employees in their work or operations for the insured. These tools may be supplied directly by the employee or to the employee through a third party. i. The rental value of an apartment or house, provided to an employee based on comparable accommodations. j. The value of lodging, other than an apartment or house received by an employee as part of their pay to the extent shown in the insured’s records. k. The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay. l. Payments for salary reduction, employee savings plans, retirement or cafeteria plans (IRC 125) that are made through employee-authorized salary reduction from the employee’s gross pay. m.Davis-Bacon wages or wages from a similar prevailing wage law. n. Annuity plans. o. Expense reimbursements to employees to the extent that an employer’s records do not confirm that the expense was incurred as a valid business expense.

p. Payment for filming of commercials excluding subsequent residuals that are earned by the commercial’s participant(s) each time the commercial appears in print or is in broadcast. 2. Excludes a. Tips or other gratuities received by employees. b. Payments by an employer to group insurance or group pension plans for employees, other than those covered by Rule 2-B-1-f and Rule 2-B-1-m. c. Payments by an employer into third-party trusts for the Davis-Bacon Act or similar prevailing wage law, provided the pension trust is qualified under IRC Sections 401(a) and 501 (a). d. The value of special rewards for individual invention or discovery. e. Dismissal or severance payments except for time worked or vacation accrued. f. Payments for active military duty. g. Employee discounts on goods purchased from the employee’s employer. h. Expense reimbursements to employees to the extent that an employer’s records confirm that the expense was incurred as a valid business expense. Reimbursed expenses and flat expense allowances (except for hand or handheld power tools) paid to employees may be excluded from the audit only if all three if the following conditions are met: 1. The expenses are incurred for the business of the employer 2. The amount of each employee’s expense payments or allowances are shown separately in the records of the employer 3. The amount of each employee’s expense reimbursement is a fair estimate of the actual expenses incurred by the employee in the conduct of his/her work i. Supper money for late work. j. Work uniform allowances. k. Sick pay paid to an employee by a third party such as an insured’s group insurance carrier that is paying disability income benefits to a disabled employee. l. Employer provided perks such as: • Use of company-provided automobiles • Airplane flights • Incentive vacations (e.g., contest winners) • Discounts on property or services • Club memberships • Tickets to entertainment events m. Employer contributions to employee benefit plans such as: • Employee savings plans • Retirement plans • Cafeteria plans (IRC 125) These include contributions made by the employer, at the employer’s expense, which are determined by the amount contributed by the employee.

If you would like more information on this or any othertopic, please contact Dennis Spindler at 763-549-2238, or [email protected].

Payroll:What to Include in Your Workers’ Compensation

By Dennis Spindler, CBIZ



MEMBER BENEFIT

One of the most pervasive issues in the automotive repairfield is “How do I hire reliable, qualified technicians?” Your em-ployees should not only have the technical skills that your shopneeds, they should be dedicated to the shop, motivated and pos-sess the people skills that are required for satisfied customerswho keep coming back.

Luckily for AASP-MN members, the Association is alwayslooking for ways to improve your business and address yourneeds. It is because of this that they have partnered with Assess-ment Associates International, a talent management company, tocreate AASP-MN’s Auto Employees Assessment System.

Job candidates complete a questionnaire depending on theirdetermined field, either service advisor and estimator or techni-cian, including mechanical, body or paint. You know bestwhether a potential hire is prepared technically for your shop, butwhat about their “soft skills”? The assesssment system looks atwork styles such as their attitude,dependability, motivation andinitiative, among other traits.The assessments are con-ducted over the Internet andresults are provided to theemployer almost immediatelyafter the survey’s conclusion.The results are presented bycomparing the candidate to current, successful AASP-MN mem-ber shop employees, allowing you to choose the best fit for yourshop. Over 150 employees have already been surveyed in orderto create a baseline for comparing job candidates to current highperformers.

The benefits of this application are obvious. They allow forquality hires and a better retention rate and improve the overallenvironment of your shop by providing valuable and effective ad-ditions to your shop’s team.

“I think there are two things at work here,” says AssessmentAssociates International Vice President Joe Kalkman. “One, asany shop knows, hiring is a really big deal, but it’s often hard tofind the time to do it properly, especially if you don’t do a lot ofhiring. For many smaller shops, they only hire one to four peoplea year. They don’t have the processes in place because it’s not acommon thing. By using this system, shops are bringing expertise

into the hiring decision. Using the assessment helps to bring inthe right quality for your business. Of course, a shop could createan assessment like this on their own, but the investment to do sowouldn’t be worth it.

“The second thing is our working collective with AASP-MN,” he continues. “Through this cooperation we were able tofund the research necessary for the assessment to be valuable to arange of shops. This relationship has allowed us to validate theresults; without AASP-MN the research probably would not havebeen done and we wouldn’t have been able to provide a cus-tomized assessment for this industry.”

The program has already received an abundance of positivefeedback from satisfied individuals. One shop owner who hasseen excellent results from this system is AASP-MN MechanicalDivision Director Wayne Watson, owner of AutoWorks ServiceCenter in Woodbury, MN.

“We have used AssessmentsAssociates International (AAI)for the past decade. It is amazinghow accurate the AAI assess-ments are in predicting the workbehaviors of employees. Withthe results of the work behaviorassessments, we not only make a

better hire, we also make better de-cisions moving employees forward in our organization. As JimCollins said in his book Good to Great, ‘The single biggest con-straint on the success of any organization is the ability to get andhold on to the right people.’”

AASP-MN members, as a benefit of your membership, re-ceive 50 percent off retail price, meaning assessments start as lowas $15 per assessment, making this system not only effective, butaffordable as well.

This is just one example of how AASP-MN is pioneeringcollaboration efforts across the industry, leading the pack in en-deavors to address the needs of the field.

For more information on the assessment program, visitwww.auto.aai-live.com or call 952-854-6551.

Hiring Good Employees with Assessment Associates International

“It is amazing how accurate theAAI assessments are in predicting the

work behaviors of employees.”


LET US TURN THEMAROUND!

Contact AASP-MN NewsSales DirectorAlicia Figurelli

973.667.6922 /

[email protected]










FTC MAKES INDUSTRY-REQUESTED CHANGES TOMAGNUSON-MOSS

The Federal Trade Commission (FTC) recently announcedthe interpretations of the 1975 Magnuson-Moss Warranty Act,nearly four years after requesting comments for a periodic re-view. The Auto Care Association, as part of the Uniform Stan-dards in Automotive Products Coalition (USAP Coalition),submitted comments in October 2011. All current FTC rules aresubject to periodic review. The USAP Coalition was formed to address the practice ofmanufacturers and their agents directly or indirectly conditioninga product’s warranty coverage on the use of branded (originalequipment) parts or services. The Magnuson-Moss Warranty Actprohibits “tying practices,” but the coalition argued that theFTC’s interpretation does not expressly take into account allpractices in the modern marketplace that produce a tying effect. In the announcement, the FTC cited language from theUSAP Coalition October 2011 submission, stating that, “Thesecommenters state that automotive and other consumer productmanufacturers have employed language in consumer materials‘to suggest that warranty coverage directly or impliedly “re-quires” the use of a branded product or service,’ leading reason-able consumers to believe that coverage under a written warrantywill be void if non-original parts or non-dealer services are uti-lized.” The tying prohibition of the MMWA, part 700.10(c), wasamended (shown bolded and italicized) by the FTC as follows:

No warrantor may condition the continued validityof a warranty on the use of only authorized repair serv-ice and/or authorized replacement parts for non-war-ranty service and maintenance (other than an article orservice provided without charge under the warranty orunless the warrantor has obtained a waiver pursuantto section 102(c) of the Act, 15 U.S.C. 2302(c)). For example, provisions such as, “This warranty isvoid if service is performed by anyone other than an au-thorized ‘ABC’ dealer and all replacement parts must begenuine ‘ABC’ parts,” and the like, are prohibited wherethe service or parts are not covered by the warranty…such provisions are deceptive …because a warrantorcannot, as a matter of law, avoid liability under a writtenwarranty where a defect is unrelated to the use by a con-sumer of “unauthorized” articles or service. In addition, warranty language that implies to a

consumer acting reasonably in the circumstances that

warranty coverage requires the consumer’s purchaseof an article or service identified by brand, trade orcorporate name is similarly deceptive. For example, aprovision in the warranty such as, “use only an au-thorized ‘ABC’ dealer” or “use only ‘ABC’ replace-ment parts,” is prohibited where the service or partsare not provided free of charge pursuant to the war-ranty.

Numerous comments filed during the review period sug-gested other changes to the tying prohibition, but the FTC de-clined to incorporate them.

CELEBRATES 20 YEARS

Twenty years ago, the first emails were exchanged among asmall group of automotive technicians through iATN. Today,more than 83,000 automotive service professionals from 170countries routinely use iATN’s various forums and rich contentdatabases to expand their knowledge and skill set spanning alltopics related to the industry. Since 1995, iATN has evolved from an email-based commu-

nication service into the world’s largest online community of au-tomotive technicians, repair shop owners and other allied serviceprofessionals. Members now have access to many iATN featuresincluding TechHelp – where technicians help each other withreal-world automotive repair problems 24 hours a day – plusmany technical and managerial web forums. An extensive,searchable iATN Knowledge Base houses the Fix Database withhundreds of thousands of real-world vehicle fixes, as well as theweb forum archives with over two million discussions, and theWaveform Library with nearly 70,000 waveforms, scan-dataimages, component photos, documents and video demonstrations,all uploaded by iATN members. “It’s hard to believe that 20 years ago, when iATN started,we didn’t even have a website, and all communication was donevia email,” said Brent Black, iATN founder. “Now nearly allcommunication on iATN is done via the web, and we expect inthe near future that most of it will be done via mobile apps.” “Today, we’ve witnessed the incredibly positive results ofthe communication that takes place on iATN, including the fel-lowship of like-minded professionals who are focused on knowl-edge expansion and positive professional development within anindustry that is constantly evolving,” said Scott Brown, iATNpresident. Brown sees an ever-increasing role for iATN in the near fu-ture as vehicles continue to grow in complexity and vehicle

NATIONAL NEWS

continued on pg. 19




technology exponentially increases. “iATN will become evenmore important for those seeking to gain a deeper understandingof today’s challenges and remain competent in the automotiveservice industry,” said Brown. For additional information, visit iatn.net.

NEW EDUCATIONAL CAMPAIGN UNCOVERS “ALLTHE FACTS” ON AUTOMATIC TRANSMISSION FLUIDS

Automotive industry leaders are supporting a comprehensiveeducational program designed to clear up the sometimes confus-ing world of automatic transmission fluids. The effort called “AllThe Facts on Automatic Transmission Fluids” or ATFonATF, isan informative “safe harbor” for ATF installers, distributors andgarage owners and managers who want to ensure they are usingthe correct fluids for all vehicle makes and models. The centerpiece of the program is a website,ATFonATF.com, which is populated with the latest and most ac-curate information on automatic transmission fluids.ATFonATF.com is the effort’s cornerstone where installers in par-ticular can find the best information to make the best ATF choicesfor their customers. By visiting the site they can stay up to dateon the latest trends, get online links to reliable resources, andgain access to articles, educational videos and photos, currentthird-party research and industry trends. “This is a trust issue for installers and their customers,” saidRon Romano, Service Lubricants Technical Expert at Ford MotorCompany. “There’s a misconception that one fluid is as good as

another and that a licensed ATF and an unlicensed ATF will per-form equally. That’s just not true. An educational effort like thisgives installers the information they need to match licensed prod-ucts with the correct makes and models of vehicles. That helpsthem build trust between them and the consumer and is ultimatelygood for their business.”


NATIONAL NEWS

WHAT’S WRONG WITH

THIS PICTURE?

Answer: The picture is of an uncovered sprinkler head in aspray booth, covered with overspray.

continued from pg.17





Do you routinely spray paints? Doyou use more than 200 gallons of paintsand thinners a year? If so, you probablyneed to have an air quality permit. That’srequired for anyone who uses more than200 gallons of volatile organic compounds(VOC) a year. VOCs are chemicals suchas toluene or xylene, the solvents com-monly used in paints, clears, gun cleanersand thinners. Your paint supplier should beable to run a VOC report for you, to tellyou if you’re above that 200 gallons ofVOC threshold. (Note: That’s 200 gallonsor 200 pounds of VOCs. If your paints arewater-based, you might be able to use a lotmore than 200 gallons of paint before youreach 200 gallons of VOCs.) So let’s say you’re above the thresh-old. You realize that you need an airquality permit. Maybe your shop hasbeen operating without a permit foryears because you never realized itwas needed. You’ve just stepped on ahornet’s nest. The Minnesota Pollution ControlAgency (MPCA) issues different typesof air quality permits, ranging fromOption B registration permits, whichmost body shops hold, to Part 70major source permits. For B registra-tion permits, you pay a couple hun-dred bucks and submit a report eachyear that tells the MPCA how muchpaint and related product you pur-chased in the previous year. That’s notso bad. For major source permits, youpay tens of thousands of dollars, keeplots of records, and do lots of report-ing. That’s pretty bad. If you’re just starting out in busi-ness or building a new shop, youprobably qualify for the B registrationpermit. If you’re in that situation,apply for it as soon as you knowyou’ll be starting up (before construc-tion of your booth). Don’t wait until

your booth has been installed. If your booth is already there, youhave a problem. Because of the waythat federal air quality regulations havebeen written and interpreted, existingshops need to calculate their potential toemit – how much pollution would theygenerate if they operated as many sprayguns as possible (based on the number ofairlines installed in your booth) every dayof the week, around the clock. Not realis-tic, you say? That’s the way the law iswritten, probably with the intent of keep-ing people from falsely claiming that theyonly spray for an hour or two. The prob-lem with that: if you have one gun thatcould spray two gallons per hour, your po-tential to emit will be enough to put you in

the major source category. So your choices become: apply for amajor source permit at a cost of tens ofthousands of dollars, close down yourshop and open a new one, so you can getthe Option B permit or operate illegallywithout a permit. There’s now a fourthchoice, the Part 70 Low-Emitting FacilityGeneral Permit. It’s a lot better, cheaperand easier than the major source permit,but it still isn’t cheap and easy. The Part 70 Low-Emitting Facility

By Janet L. Keyes, CIH, C.H.E.S.S., Inc.

COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.)

continued on pg. 23

Air Quality Permits




continued from pg. 21


General Permit was developed by the MPCA to cover those facil-ities that are not major polluters, but that didn’t get a permitwhen they should have done so. Its big advantages: it is muchless expensive than an individual major source permit and, if youapply for it before April 30, 2016, you won’t be subject to legalaction because you were operating without the required permit. If the MPCA finds that you’re operating without a requiredpermit, penalties can be steep. This March, a sporting goodscompany paid $78,000 for not having a permit for its spraybooths. A company in Winona paid nearly $100,000 in 2012, forlack of permits for its booths. If you have not had an air quality permit and now want totake advantage of the MPCA’s amnesty program, we recommendfiguring out whether you qualify before you apply. If you’re notusing waterborne paints, from the calculations we’ve done, itlooks like you may not qualify for this permit (you’ll need themajor source permit), or you will need to change or eliminatesome of your paints. Do any of your paints contain lead? If so,you probably don’t qualify. This would be a good time to changeyour practices – get rid of the lead-containing paint and switch towaterborne. The permit application itself has almost twenty forms. If youlike filling out tax forms, you might like this permit application.This is not something you want to try completing on your own.The MPCA’s Small Business Environmental Assistance Programshould be able to help. There are also consultants who can helpyou. Make sure they have experience with the MPCA’s air qual-ity permitting process and have heard of this new permit. The quick summary:

• If you have an air quality permit already, appreciate it. This new permit isn’t for you.• If you are just planning to start operations – you haven’t constructed a shop or installed a paint booth – apply for a permit now, as soon as your plans have firmed up and preferably before any construction has begun. If you do so, you should be able to get the simple and inexpensive registration permit.• If you’ve been operating without a permit and you spray waterborne paints, this new permit is your best hope for coming into compliance. But check with the MPCA Small Business Environmental Assistance Program (SBEAP) or a knowledgeable consultant before you apply.• If you’ve been operating without a permit and still spray solvent-borne automotive paints, you will need to evaluate your specific paints or consider changing to waterborne. But it would be wise to check with the MPCA SBEAP or a knowledgeable consultant before

you make changes, to ensure it will allow you to qualify for this permit. • And if you’re in Minneapolis, the city had been offering grants to switch to water-based paints. Check with the city or with MnTAP to see if that program will open up again.

Operating without a permit puts you at risk for heavy penal-ties. We all breathe the air. Permits are needed to help protect theair quality in Minnesota. Permits have been shown to be effectivecontrols on how much bad stuff all of us breathe. If you have questions about air quality permits, spray paint-ing, chemical exposures, safety and environmental inspections,OSHA grants, or other safety or environmental issues, contactCHESS at 651-481-9787; toll free at 877-482-4377, [email protected]. CHESS specializes in helping small tomedium sized business with occupational health and safety is-sues. We have been providing services to the automotive industryfor more than 20 years.

COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.)


continued from pg. 10

THANK YOU TO OUR 2015 SPONSORS

Recently, AASP-MN asked for sponsorship support from its Associatemembers and other industry vendors to help support the Association’s edu-cational programming and other activities in 2015. Sponsorships helpAASP-MN deliver the quality programs members expect and keep regis-tration fees affordable. To date, the following companies have made spon-sorship commitments:

24 July 2015

LOCAL NEWS

Gold SponsorsAutoshop Solutions

Auto Value Parts Stores & APHAxalta Coating Systems

PPG Automotive Finishes

Silver Sponsorsaaa Auto Parts

CBIZ AIAInver Grove FordLKQ/Keystone

Lowell’s Performance CoatingsMeadowbrook InsuranceMidwest Parts Advantage

Mitchell InternationalO’Reilly Auto PartsPAM’s Auto, Inc.

Suburban ChevroletUnited Fire Group

Program Sponsors3M

AASP NationalCARQUESTCBIZ AIA

CBIZ PayrollDent Impressions

IDENTIFIXRobert Bosch, LLC

Hospitality SponsorsAmeriPride Services

BASF Automotive RefinishCCC Information Services

Choice Auto RentalDentsmart PDR

Enterprise Rent-a-CarNet Driven

Norton AbrasivesPro Paint Metro

Sherwin-Williams

AASP-MN News





CASH IN ON YOUR MEMBERSHIP!

WORKERS’ COMP INSURANCEMeadowbrook Insurance GroupContact: Dennis Spindler763-549-2238 / [email protected] scheduled credit makes Meadowbrook one ofthe most competitive programs around for Worker‘sCompensation insurance. In addition, members areeligible to receive an annual dividend based on thegroup’s loss ratio. For more information, log on towww.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCECBIZ AIAContact: Dennis Spindler763-549-2238 / [email protected] AIA will present AASP-MN members with quotesfrom multiple carriers for property/liability insurance andmembers can choose the program that best fits their situa-tion. As an added bonus, CBIZ AIA will offer members anexclusive 10% discount on their property/liability insur-ance premiums.

EMPLOYEE BENEFITSCBIZ AIAContact: Dennis Begley763-549-2260 / [email protected] AIA will provide AASP-MN member with quotesfrom multiple carriers for life insurance, health insur-ance, long-term care and disability insurance.

UNIFORM & LINEN SUPPLIESAmeriPride ServicesContact: Jim Dillon651-955-1398 / [email protected] pricing to members on rental of uniforms,entrance mats, shop rags, etc. Purchases are also dis-counted. Members receive annual rebate equal to10% of their business with AmeriPride each year.

CREDIT CARD PROCESSINGAssociation BankCard ServicesContact: Mac Hardin952-933-2026 / [email protected] rates for AASP-MN members. Terminalsand printers sold at cost. Monthly rental of equipmentis also available.

INDUSTRIAL & PAPER PRODUCTSWipers & Wipes, Inc.Contact: Dennis Julson651-486-4866Discounts on industrial supplies and paper products.Free, next-day delivery is available in the metro area.Shipping free to outstate members with $100 pur-chase.

WEBSITE AND INTERNET MARKETING SOLUTIONSNet DrivenContact: Jon Napoli877-860-2005, ext. 400 / [email protected] Driven is a market leader in website and internetmarketing solutions designed exclusively for the auto-motive industry. AASP-MN members who choose NetDriven are eligible for a $500 discount off their 1st yearsetup fees. For more information, contact Jon Napoli.

StormlogixContact: Paul Switzer732-364-1156 / [email protected] extends a discount on its website pack-ages to AASP members. Costs can be spread outover 6 months.

AUTO EMPLOYEE ASSESSMENTAssessment Associates InternationalContact: Ron Page (952) 854-6551 / [email protected] to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

TECHNICAL INFORMATION HOTLINEIDENTIFIX800-288-6220Members enjoy discounted prices on the industry’s #1technical information hotline. One free call is extendedto all first-time AASP-MN member callers.

BUSINESS FORMS/CALENDARSAASP-MNContact: Jodi Pillsbury612-623-1110 / [email protected] rate on printed business forms and calendars.

SHOP SERVICESSummit eMarketing SherpasContact: Frank Terlep888-377-2661 / [email protected] members receive a 5% discount on all SummiteMarketing Sherpas’ services, including: websitedesign and development, search engine optimization,email marketing and communication, online reviewand reputation management and social mediamarketing.

INFORMATION PROVIDERSMitchell1Contact: Mitchell1 Representative888-724-6742 x 6986AASP members are eligible for special Mitchell 1 in-formation and management programs at significantdiscounts. For more information, log ontowww.mitchell1.com or contact the Mitchell 1 representa-tive at 888-724-6742, X6986.

Mitchell International Contact: Mitchell International Representative 800-238-9111

AASP members receive a 15% discount on anyMitchell RepairCenter TechAdvisor package. Visithttp://repaircenter.mitchell.com/Catalog/OEMRepair.aspx for more information.

PAYROLL PROCESSINGCBIZ PayrollContact: Carrie Hobrough612-436-4620 / [email protected] receive 20% discount off standard payrollproducts and services (excluding 401k). Memberswho switch prior to June 30 will receive first month ofpayroll processing free.

CHECK GUARANTEE SERVICESCertegy Check ServicesContact: Heather Ellis952-240-5017 / [email protected] rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

BUSINESS COACHING180BIZ540-833-2014 / [email protected] offers BUSINESS COACHING to AASP membersat a steep 20% discount! One Eighty Business SolutionsLLC (180BIZ) has been helping shop owners increaseprofits and car count while decreasing stress since 2003.AASP members receive a discount on very affordable one-on-one coaching plans without long-term commitmentsand complicated contracts. 180BIZ offiers a risk-free trialof their services. To learn more, please call or email us, orvisit our website.

REPLACEMENT PARTSDorman ProductsPhone: 800-868-5777, ext. 5329AASP members receive insider information, specialaccess and other perks from Dorman Products, aleading supplier of dealer “exclusive” automotive re-placement parts.

LEGAL CONSULTATIONFryberger, Buchanan, Smith & Frederick800-496-6789Members receive free, over-the-phone legal assess-ment and consultation (some restrictions apply) withan attorney who specializes in the area of law that isthe subject of the call.

AASP-MN MEMBER BENEFIT PROGRAMS

The Partner You Need to Do Your Image Proud

Minneapolis612-331-1600Bemidji

218-751-5150Mankato

507-345-1039

Hibbing218-263-3611St. Cloud

320-251-2525Fargo

701-232-7484

In your industry, trust rules. You work hard to earn it from cus-tomers every day. When your business features branded work wear andfloor mats, clean restrooms and bays, customers trust that you’re doingthings right. This helps you stand out from the shops down the street andkeeps customers coming back. AmeriPride Services offers a towel, rug and uniform rental programto AASP-MN members that features discounted prices, annual rebates,free installation, free emblems, no deposits and no set-up charges. With a uniform and facility care product program from AmeriPride,you’ll save:

• Time – We’ll manage the details so you don’t have to. A Customer Portal with online billing and payment adds convenience and ease.

• Space – Stocking the exact quantities your business needs.• Money – Weekly inventory monitoring means you’ll only spend

on what you need.

Local support keeps your program running smoothly. We know thatservice is more than just doing the job. Excellent service is the result ofgoing above and beyond. That’s why you’ll see the same familiar face atevery delivery. We know service is more than a 1-800 number. Service isshowing up—every day, no matter what.

Diamond Plate Shop Shirt & Performance Shop Pants and Shorts,Manufactured by Red Kap – Available through AmeriPride The Diamond Plate Shop Shirt is one of the newest additions to theAmeriPride family of Shop Gear products built specifically for car guys.Garage-tested for durability and comfort and inspired by car culture, it’sloaded with features designed to make doing your job easier and helpyou look good while doing it. It’s a shirt that’ll work as hard as you do –day after day, car after car. AmeriPride’s performance shop pants and shorts are unique in theindustry. They come standard with features to make your job a little eas-ier—like a cargo pocket on the left leg and double-pockets on the rightleg for easy access to phone, keys and tools and a concealed waistbandbutton to prevent accidental scratching of paint jobs. For more information, visit www.ameripride.com or call:





Documents

AASP-MN News July 2015