AASP-MN News July 2016

www.grecopublishing.com

PLUS:22nd Annual

AASP-MN Golf Outing Highlights

July 2016

AASP-MN News2 July 2016

AASP-MN News July 2016 3



CONTENTSVol. 24 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. To keep its readers better informed, AASP-MN News allows its columnists tofully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2016All rights reserved. Cover image © www.istockphoto.com.

AASP-MN BOARD MEMBERS 2016 - 2017

PRESIDENTGreg Kasel, AAM

IMMEDIATE PAST PRESIDENTTom Gleason

SECRETARY-TREASURER Wayne Watson

COLLISION DIVISION DIRECTORWill Latuff

MECHANICAL DIVISION DIRECTORMars Overlee

ASSOCIATE DIVISION DIRECTORDave Bock

COLLISION SEATSJim Siegfried, AAMBruce Tschida, AAM

MECHANICAL SEATCarl Thomas

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

PUBLISHERThomas Greco ([email protected])SALES DIRECTORAlicia Figurelli ([email protected])EDITORIAL DIRECTORJoel Gausten ([email protected])EDITORIAL ASSISTANTChloe Durante ([email protected])CREATIVE DIRECTORLea Velocci ([email protected])OFFICE MANAGERDonna Greco ([email protected])www.grecopublishing.com

ASSOCIATE DIVISION DIRECTOR’S MESSAGE .................................................6Commitment is a 3-Letter Word: YOU!by Dave Bock, AASP-MN Associate Division Director

LEGISLATIVE UPDATE .............................................................................7Business Tax Break on Hold Following Pocket Vetoby Kevin Walli, AASP-MN Lobbyist

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

NATIONAL NEWS ..................................................................................12

DEG ESTIMATING TIPS ..........................................................................15

COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) ..............16Oil and Water and Shoes Don’t Mixby Janet L. Keyes, MS, CIH and Carol A. Keyes, MA, CSP

INSURANCE I.Q. ..................................................................................20Implementing the New Overtime Regulations: 5 Steps to Predicting and Controlling Costs

CASH IN ON YOUR MEMBERSHIP!..............................................................22AmeriPride Linen & Uniform Services: The Partner You Need to Do Your Image Proud!

August 24, 2016A Night Out with the Saints

CHS FieldSt. Paul

ADVERTISERS’ INDEX

UPCOMING EVENTS

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

AmeriPride........................................................7aaa Auto Parts ..................................................21Axalta Coating Systems ....................................OBCBlue Net, Inc. ..................................................17Buerkle Hyundai................................................17CBIZ..................................................................IFCC.H.E.S.S. ........................................................16Choice Auto Rentals..........................................13Dentsmart ........................................................20FinishMaster ....................................................19Inver Grove Honda / Inver Grove Toyota............18Jack McClard....................................................18Keystone ..........................................................4Libson Twin City ..............................................19

Maplewood Toyota ............................................4Meadowbrook Insurance ..................................IFCMills Parts Center ............................................6Morrie’s ............................................................9Motorwerks BMW ............................................IBCMPA..................................................................11PAM’s Auto ......................................................13Proven Force ....................................................14Rosedale Chevrolet ..........................................10Roseville Chrysler ............................................6Straight & Square ............................................14Toyota Group ....................................................3West Bend Insurance ........................................IFC

When members of the Associate Ad-visory Committee suggested that I take onthe role of Associate Division Director, Iwas somewhat hesitant because I didn’tknow what type of time commitment wasrequired. My position with AutomotiveParts Headquarters/Auto Value requires afair amount of travel, which I knew wouldpresent some conflicts with the meetingsand membership activities. But watchingmy predecessor (Kevin Martin) profes-sionally handle his directorship over thepast three years made it an easy decisionto accept this opportunity to serve theAASP-MN membership.

During the Board of Directors’ Orien-tation on April 26, I quickly found outwhy AASP-MN continues to be a

nationally-respected association: Commit-ment. You couldn’t have found a morecommitted person than Dale Feste (pastpresident and honorary member of AASP-MN) to start the meeting and remind theincoming board members about the impor-tance of our roles in supporting the AASP-MN membership, as well as ourautomotive industry. (Also, to not be latefor meetings!)

As a “newbie” on the Board of Direc-tors, I was impressed with the amount ofstrategic planning and decision-makingthat happens behind the scenes. I also real-ized that I’ve got a lot to learn, and thatI’m lucky to be surrounded by a very ex-perienced and dedicated group of directorsand AASP-MN staff members…Judell,

Jodi and Tom.If you are reading this article, please

pat “you” on the back for making the com-mitment to be involved with AASP-MN in2016. It all starts with your membership inthe AASP-MN family, then evolves intoincreased participation in association pro-grams and training events. And if you arefortunate (like me), you’ll be asked to siton one of the AASP-MN committees andlearn from the best in our industry. I lookforward to working with you in the future!


ASSOCIATE DIVISION DIRECTOR’S MESSAGE

by Dave BockAASP-MN Associate Division Director

Commitment is a 3-letter word: YOU

A centerpiece tax provision exempt-ing the first $100,000 of a business’s prop-erty value from the state property tax is onhold following Governor Dayton’s refusalto sign the Omnibus Tax Bill by midnight,June 6. The Governor’s refusal to sign abill within a constitutionally-determinedtimeframe is referred to as a “pocketveto.” The Governor cited a typo in theTax Bill that would have reduced staterevenue for a stadium fund by $100 mil-lion. Over $270 million of ongoing annualtax relief was provided for in the bill,which the Governor has said he will signwhen the typo is corrected and the bill re-passes in a Special Session. He wouldhave to call a Special Session this sum-mer.

While there is little controversy onthe balance of the Tax Bill, lining thingsup for a Special Session is not necessarilygoing to be simple. The Legislature failedto pass either a transportation package or abonding (public infrastructure) bill as the2016 Session came to a close.

The Governor and House Republicanshave a number of issues to resolve beforea Special Session can be called.

The version of the Bonding Bill thatwas being considered at the close of theRegular Session did not include severalprojects which the Governor had proposedand which he regarded as high priorities.One major stumbling block is the Gover-nor’s insistence on providing a source offunding to match federal dollars for the

Southwest Metro Light Rail Line.There are many interest groups with

much at stake in the Tax and BondingBills. The Governor and legislative lead-ers continue their negotiations to findcompromise – and a bit of good news onthe business tax front is that all partiesagree on the $100,000 property value ex-clusion from the state property tax.

Now, we need to wait and seewhether common ground can be found onthe bonding and transportation fronts.

Special Sessions once were the ex-ception rather than the rule. Now we areseeing Legislative Session meltdowns asthe normal course of business. Here’s hop-ing we can get this one resolved quickly.

LEGISLATIVE UPDATE

by Kevin Walli,AASP-MN Lobbyist

Business Tax Break on HoldFollowing Pocket Veto


Welcome NewMembers:

JUNE 2016

Doug’s Auto ServiceNorthfield

Frazee Auto Body & GlassFrazee

HyTech AutomotivePrinceton & Milaca

Key AutomotiveHugo

The Auto Body ShopWillmar


LOCAL NEWS

CARCAREERS.ORG MAKES ITS DEBUTStatewide Campaign Encourages Students to Pursue

Careers in Automotive IndustryEmployers in the automotive industry know that the pipeline

of qualified employees has been shrinking in recent years. That’swhy AASP-MN spearheaded the creation of Minnesota Careersin Automotive Repair and Service (MNCARS), an industry-widecampaign with the goal of ensuring a future workforce for thestate’s automotive service and collision repair industry. With hun-dreds of jobs waiting for qualified candidates, the time is now toattract new professionals to this exciting and rewarding field.

In June, MNCARS kicked off itscampaign with the launch of www.carcareers.org, an informative website thatwill serve as a central resource for stu-dents, parents, teachers and counselorsto learn about the latest automotive ca-reer information and education pro-grams. The website includes sectionson: the benefits of pursuing an automo-tive career, correcting common misper-ceptions about the industry, the widevariety of career paths available and alisting of all post-secondary automotiveprograms in the state. The site alsodemonstrates the bright future of auto-motive careers by spotlighting real-lifestories of local automotive profession-

als. An information kit for school counselors is under develop-ment and will be available in the near future.

Over the course of the two-year campaign, the MNCARS ef-fort will meet students, parents and educators where they arethrough participation in community events and social media. Thewebsite will be supported by Facebook and Instagram channelsthat will feature stories, news and photos to inform, educate andmotivate students to find out more about career opportunities inthe automotive industry. AASP-MN members and the entire auto-motive community are invited tojoin in the fun and contributetheir own content and views atFacebook.com/carcareers.

MNCARS also had a pres-ence at Back to the Fifties at theState Fairgrounds on June 17-19,thanks to the generosity of PPG,Suburban Chevrolet and Key-stone Automotive. Displays andhandouts promoting the carcareers.org website, as well asa photo contest on Facebook,were designed to get car enthusi-asts to start thinking about carsas more than just a hobby and toopen their eyes to the outstand-ing career opportunities that existin the industry.

The work of MNCARS is made possible by the generouscontributions of industry organizations and companies. Checkout www.carcareers.org and visit the About Us page to see a listof sponsors and supporters. Stay tuned for further updates aboutthe progress of this important initiative.

NEGOTIATION TOOLS & BEST PRACTICES SEMINAR HIGHLIGHTS

In partnership with Axalta, AASP-MN hosted Mike Ander-son of Collision Advice to present “Negotiation Tools & BestPractices” on June 2 at the Radisson Hotel in Roseville, MN.Sixty-five students attended the popular instructor’s class, whichfocused on the negotiation process between insurers and collisionrepair facilities. Anderson provided real-world examples to givestudents proven methods to get paid what they are owed.

In addition, Anderson presented results from his “Who Paysfor What?” surveys, which gave students more knowledge aboutwhat insurers will and will not pay for and how to use the surveyresults to negotiate and justify an estimate.

One attendee said, “Any class Mike does in Minnesota, Iwant to be at. I learn more and more each time I see him.”

EAGAN’S FIRST FIRE TRUCK GETS ANOTHER LEASEON LIFE THANKS TO TWO AASP-MN MEMBERS

AASP-MN members Dan Sjolseth, Superior Service Center,Eagan, and Scott McClure, St. Paul Automotive, St. Paul, recentlydonated their time and expertise to restore Eagan Fire Department’s1942 Chevrolet pumper. The pumper - nicknamed “Jenny”- wasdecommissioned in 1980, but has made appearances at parades andother community events since then.

Last summer, the gears on her original transmission finallywent out. After hearing the beloved “Jenny” might be groundedfor good, Sjolseth, who refurbished the truck back in 2010,jumped back intoaction again, even-tually recruitingMcClure.

According tothe St. Paul Pio-neer Press, the two“donated theirtime—about$15,000 worth—tofabricate the truck


and install the motor, exhaust and a new automatictransmission. The fire department paid about$5,000 in new parts.”

“For these guys to reach out and do this forEagan is pretty cool,” Fire Chief Mike Scott said.“You don’t see that much anymore.”

THANK YOU TO OUR SPONSORS!

Gold SponsorsAuto Value Parts Stores/APH

Autoshop SolutionsAxalta Coating Systems

CBIZ AiAMeadowbrook InsurancePPG Automotive Finishes

United Fire Group

Silver Sponsorsaaa Auto Parts

Dent ImpressionsEnterprise Rent-A-Car

LKQ/Keystone AutomotiveLowell's Performance Coatings & Equipment

Midwest Parts AdvantageMitchell InternationalO'Reilly Auto PartsPAM's Auto, Inc.

R.O. WriterSuburban Chevrolet

Other Sponsors3M

AASP NationalBill Smith Fund

Choice Auto RentalDentsmart Paintless Dent Removal

FinishMasterGlobal Finishing Solutions

Hertz CorporationInsurance Brokers of MN / Jensen Agency

Kukui CorporationNet Driven

Sherwin WillamsSingle Source, Inc.

Valspar

continued on pg. 10


22ND ANNUAL AASP-MN GOLFOUTING HIGHLIGHTS

On Tuesday, June 21, 112 golfers and25 sponsoring companies enjoyed a beau-tiful day golfing and socializing at the22nd Annual AASP-MN Golf Outing atKeller Golf Course, Maplewood.

As always, the competition wasfierce, but the team from LaMettry’s Colli-sion was declared the winner with a scoreof 57 (15 under par). Team members were:

Justin LaMettryMike BallouEric JohnsonJohn RutzThe team from aaa Auto Parts placed

second, represented by team membersTodd Ratzlaff, Patrick McKinney and PeteAnderson of aaa Auto Parts and AaronWheatcraft of Arcon Solutions.

Third place winners were Dan Swen-son and Wes Harris of Alexander’s ImportAuto Repair, Terry Johnson of Sears Im-ports and Joe Nelson of Morrie’s.

CBIZ AiA raised $1,055 for AASP-MN’s Education Fund during its “Beat theAgent” contest on hole #4. The AASP-MNEducation Fund provides scholarships tostudents in NATEF-certified automotive

programs.In addition, a fundraiser to support a

new industry initiative, Minnesota Careersin Auto Repair and Service (MNCARS),raised $665. MNCARS is a two-year out-reach and marketing campaign designed to

recruit people into college auto serviceand collision repair programs, and ulti-mately into careers within the industry.

continued from pg. 9

LOCAL NEWS

FCA TO BODY SHOPS, INSURERS: SCAN EVERY VEHICLE BEFORE AND AFTER ANY REPAIR

In June, Fiat Chrysler Automobiles (FCA) confirmed that autobody shops, glass replacers and even someone disconnecting a bat-tery must scan a vehicle before and after every repair. A Mopar position statement sent to I-CAR, collision repair as-sociations and more than a dozen major auto insurers and sub-sidiaries set out the official OEM stance on the procedure:

Safety and security related systems, such as antilock brakes, sup-plemental restraint systems (SRS – air bags), occupant restraintcontroller (ORC), seat belts, active head restraints, forward fac-ing camera and radar, blind spot monitoring, and other auto-mated electronic driver assistance systems, MUST be tested forfault codes (DTCs) that could be active (current) or stored fol-lowing a collision. Use of the Mopar wiTECH vehicle diagnostictester is necessary before and after collision repair.

ANY of the following conditions could trigger DTCs prior to orduring collision repairs, which could result in improper vehicleperformance: • Vehicle is involved in an accident or collision, even though the damage may appear minor • Vehicle has been in an accident with or without air bag deployment • Voltage loss, including battery disconnects and hybrid battery disabling • Significant vehicle disassembly including, but not limited to, bumpers, door handles, headlamps and mirrors • Interior trim repair or removal • Glass removal and replacement operations

The OEM also notes that aftermarket scan tools might notcut it.

“Use of the Mopar® wiTECH vehicle diagnostic tester(Mopar Scan Tool) is an important part of FCA U.S. vehicle serv-ice and maintenance,” the document states. “This tool containssoftware that aftermarket tools may not contain and can assesswhether any FCA U.S. vehicle’s safety and security systems con-tain active or stored Diagnostic Trouble Codes (DTCs).”

The full document can be found at http://tinyurl.com/gpe4mqo.The OEM didn’t specify which model years would require

the procedures. However, it’s interesting to note that safety de-vices mentioned in the statement include not just cutting-edge -and soon standard, in the case of autobraking - features like auto-mated electronic driver assistance systems and blind spot moni-toring. They also include mundane safety items like antilockbrakes and seatbelts.

Collision repairers have complained that insurers refuse toreimburse for the procedure, which experts say is as necessary as3-D measuring on basically every vehicle - the dash light doesn’ttell you nearly enough.

Insurers emailed the document included Allstate, Amica,Erie, Esurance, Farmers, GEICO, Kemper, Liberty Mutual,

Metlife, Nationwide, Progressive, Safeco, Shelter, State Farm,Travelers and USAA.

Courtesy of Repairer Driven News

SERVICE BAY SHARE BOOGIE Big changes in service bay share are underway among major

types of light vehicle repair outlets. Over 35,000 service bayswere shuttered in the U.S. during the past 10 years (2005 to2015) despite the car and light truck population surging by morethan 15 million.

Although approximately three percent of service bays closedbetween 2005 and 2015, bay loss was concentrated among just afew major types of service outlets. In fact, several major outletgroups expanded their bay count. This has significant conse-quences for where light vehicles are serviced in the U.S., as wellas the strength of major distribution channels supplying the carand light truck aftermarket.

Six Major Takeaways • Although total VIO (vehicles in operation) increased by more than 15 million between 2005 and 2015, the light vehicle service bay population across the U.S. fell more than 35,000. • Service stations and garages increased their bay share over the past 10 years, climbing from 29 percent to 30 percent of total car and light truck service bays. Repair specialists also expanded their bay share, expanding from 16 percent to 19 percent of all service bays nationwide. • Foreign specialists recorded the largest relative increase in service bay share over this 10-year span, increasing from less than six percent to over seven percent of the light vehicle bay population. • Tire stores recorded a moderate increase in bay share, representing 11 percent of the service bay population at mid-year 2015, up from 10 percent share 10 years earlier. • Vehicle dealer bay share fell from 29 percent to 25 percent between 2010 and 2015, while the residual category of All Other Outlets sank from 12 percent to 10 percent in bay share. • Independent (non-dealer) service bays increased from 71 percent to 75 percent of all car and light truck service bays across the U.S. during this 10-year span. This had a significant impact on the strength of major types of repair outlets and the product shares of individual distribution channels supplying the light vehicle aftermarket.

Courtesy of the Lang Aftermarket iReport


NATIONAL NEWS



Transparent Colors in Audatex Some colors may require additional coats of base material

or tinting of the primer sealer because they are more transparentthan other colors. These additional steps would not be includedin the Audatex refinish time and would require a manual line.This can be found in the Audatex DBRM on page 161:

“Some colors have been identified by the paint makers asvery transparent. These colors may require tinting theprimer/sealer or additional coats of base materials to achieve acorrect match (hiding). If this is necessary to achieve a visualcolor match (hiding), any application of base color beyond thethird base coat may require an adjustment of the refinish laborand material allowance.”

Option selection in CCC One It’s important to have the correct options selected in the ve-

hicle options’ tab on your estimating system. For example, whenthe fog lamps are selected in the Vehicle Options tab, the frontbumper cover w/o fog lamps will not display. To see the frontbumper cover w/o fog lamps part, please de-select the fog lampoption. This can be found in DEG inquiry 9272.

Test Fit Part Test fit parts is a not-included operation in all three estimat-

ing systems.

Audatex states in DEG Inquiry 2491:We have reviewed your inquiry and in the Reference Man-

ual section 4-3, Replacement & Recycled Operations, there is astatement under Included Operations (Front End Cover/Panel),... Reasonable adjustment and alignment [as defined bythe manufacturer using conventional fasteners and/or hardware].Our labor includes time for normal adjustment and alignmentfor fit, one time. If a part needs to be removed multiple times toduplicate these efforts, that is not included in our labor times.

CCC shows in Inquiry 9360:* Test fitting of a panel in order to determine

alignment/straightening of the adjacent panel(s) and or flange(s)is not included with the Outer Panel labor allowance.

Mitchell also states in DEG Inquiry 6689:If a technician determines that a trial fit is required to check

for proper and correct fit to vehicle, this would not be includedin R&I/R&R of a component.

Wheel Balance is not included with wheel replacement inCCC One

Balancing of the wheel is a not-included operation when re-placing a wheel in CCC One. This can be found in the footnotesof CCC and also in DEG inquiry 5404.

Clear Coat Panels in Audatex To make sure you receive clear coat for inner panels in Au-

datex, you must have Two-Stage listed under the vehicle sectionof the estimate. This section is just above the vehicle optionssection.

Example 1 below shows Two-Stage next to Int. Refinish sothis estimate will calculate clear coat for inner panels.

Example 2 below does NOT show Two-Stage next to Int.Refinish so this estimate would not calculate clear coat for innerpanels.

This is very important to review with all estimates but mostimportant when the estimate user has the option selected toNOT show the refinish breakdown under the refinish line.


ESTIMATING TIPS

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect,

diagnose and identify the methodology and their unique cost of the vehicle damage repair.

You can view these tips and others on the DEG website,

WWW.DEGWEB.ORG.

A body shop just received a grantfrom OSHA to redo the floor in its detailarea. Why? Because an employee slippedon the soapy wet floor, breaking his wristbadly enough to require surgery. Hewasn’t doing anything unusual. His injuryisn’t unusual. But it was costly. And it ispreventable. Why did he slip? If we want to betechnical about it, the coefficient of fric-tion between his footwear and the walkingsurface was clearly too low. Combine thatwith gravity’s insistence on exerting itself.Add in a likely attempt to catch himself,preventing head damage by thrusting outhis arm so it took the force of his fall. Re-sult: pain for him, more work for hiscoworkers, who had to cover for him, andmore costs and stress for his employer.Prevention costs more upfront, but is a lotcheaper in the end. If you wash cars, soap will get on thefloor. If you repair cars in Minnesota win-ters, snow and ice will be on your floors in

winter. We can’t eliminate those. But thereare still lots of measures to take to reducethe likelihood of slips.

Clean up spills and puddles.• Put water-catching mats in your entryway.• Have a zero-tolerance policy for fluid on the floor. Make it the responsibility of all employees to clean up any fluid, whether it’s from a car shedding snow, a leaking oil pan or someone’s clumsiness with coffee. • Invest in good squeegees and in good sorbents. Get away from using floor dry or cat litter for cleanup – those can be scattered around, don’t have that high of a capacity for fluids, and can be difficult to dispose of correctly. Instead, look at sorbent pads that canbe wrung out and reused. And don’tjust put them down and leave them – use them to clean up.

Prevent the slip• Install floor coatings with grit added, designed specifically for wet surfaces. • If you have the opportunity to redo floors in wet areas, such as wash bays, look at the water flow. Make sure it flows to your drain.• Discourage the use of slippery shoes. You’re not required to purchase footwear for employees, unless you require safety-toed footwear (which would be a good idea, by the way. But for that, you only need to provide a reasonable allowance, not the full cost). But you can request employees wear sturdy footwear with good tread.

Prevent the trip• Insist that employees hang up hoses and cords. • When you walk through your shop, look for tripping hazards. Is carpet in your office area coming up? Is a mat edge curled over? Are filing cabinet drawers left open? Are car parts leftwhere they came off the car? Is cardboard left on the floor? If you have cords that have to be on the floor, such as many frame rack cords, cover those with a cord bridge.• Check your floor and your drains. Is the concrete spalling? Are there holes? Pipes sticking up? Edges of the drain that are uneven?

Look outside• Parking lots and sidewalks take a beating in Minnesota – just as roads do. If the asphalt is pot-holed or if the concrete slab has lifted up, you risk injury to employees and to customers. While you can require your employees to wear sensible shoes and to watch where they walk, you can’t require the same of your customers. So keeping your lot and sidewalk in good shape is essential.• Go outside during a rainfall. Wheredoes the rain go? If you have water running across sidewalks or where people normally walk, you create a slipping hazard – particularly in winter, when that water freezes. Divert

By Janet L. Keyes, MS, CIH and Carol A. Keyes, MA, CSPCOMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.)

Oil and Water and Shoes Don’t Mix

continued on pg.19AASP-MN News16 July 2016




it. Have a plan, such as using a salt spreader, for handling the icy spots you couldn’t prevent in winter.• OSHA’s $afetyPays calculator estimates direct costs of nearly $50,000 for one fracture (that doesn’t include the lost productivity, or your time in dealing with the injury, or the cost of customers displeased at the delayed delivery of their cars…). What’s your profit margin? How many more sales do you need to make up for that wasted $50,000? OSHA estimates more than a million, at a margin of three percent. That makes the time and effort required to prevent slips and falls seem like a pretty good bargain.

If you have questions about building safety, hazard preven-tion, handling worker injuries, OSHA grants or general safety is-sues, call CHESS at 651-481-9787 or e-mail us [email protected].

This article is intended to provide general information (noadvice) about current safety topics. To discuss your specificconcerns and how CHESS may help, please contact CHESSat 651-481-9787 or [email protected].

continued from pg.16

C.H.E.S.S.


INSURANCE I.Q.

All employers should prepare now for the recent changes tothe Fair Labor Standards Act (FLSA).

New overtime regulations were unveiled by the U.S. Depart-ment of Labor (DOL) dramatically impacting which employeescan be classified as exempt or nonexempt, and therefore dueovertime for any hours worked more than 40 in a work week.Employers must comply with the changes by December 1, 2016.

Key changes to the Fair Labor Standards Act (FLSA) include:

• The minimum salary test for an employee to be exempt from overtime will become $47,476.• The level will increase every three years going forward.• Employers will be able to include non-discretionary bonuses to satisfy up to 10 percent of the new salary threshold.• The rarely-used “highly compensated employee” exemption will now require pay of $134,004, and will also increase every three years.

What is Still the Same?While the consequences of the changes are quite dramatic,

much of the existing regulation remains intact. Specifically, em-ployees above the $47,476 threshold must still pass one of the du-ties tests (i.e. executive, administrative, professional, etc.)

What Do I Do? 5 Steps to Predicting and Controlling CostsCompanies are seeking to control the costs of implementing the

revised regulations in a manner that is consistent with their culture.Employers have numerous options and scenarios on how to comply,each with different costs, pros/cons, employee morale and culturalimplications that must be understood and weighed. To this end, the

following approach can be used to optimize implementation:

1. Identify Affected Employees. Employees previously consideredexempt that now fall below the new salary threshold must be identi-fied. This can be easily accomplished through collecting and analyz-ing the current job and classification documentation, actual employeecompensation (salary, non-discretionary bonus, incentive pay andcommissions) and current FLSA status. The only real decision pointin this step is whether to evaluate based on employee or by entire jobs(in other words, should exempt employees who are above the$47,476 threshold but are in a job with employees below the thresh-old be included).

2. Analyze Alternatives. Too many employers are simply decidingon one of the DOL’s simplistic implementation scenarios and then calculating the associated costs. However, best practices indicate thatemployers should evaluate all of their options before choosing thebest path. Analyses that could be undertaken include:

• Zero-cost implementation strategy:Consider developing an hourly rate for affected employees by dividing their salary by the number of hours currently worked or expected of the position on an annual basis (i.e. perhaps 45 hours a week rather than 40). Increase all employees to the new minimum: Analyze the cost of bringing all affected employees to the new salary test minimum in order to maintain their exemption status.• What-if analysis:Conduct analyses to determine the cost of bringing some affected employees to the new minimum whilechanging others to hourly (perhaps drawing a line at varying levels of pay below the threshold).

Implementing the New Overtime Regulations: 5 Steps to Predicting and

Controlling Costs

• Job modeling:Generally, it is recommended that all employees in the same title have the same exemption status. Model the cost of changing all employees in a title with one incumbent below the threshold tononexempt.• Compression Analysis:Artificially increasing pay for some employees to the $47,476 threshold will almost certainly create compression with the pay of other employees in the same job or other jobs. It is important to identify and address areas of compression before finalizing an implementation plan.• Productivity loss:Consider productivity implications. If formerly-exempt employees who fall below the salary threshold are moved to the nonexempt status but capped at 40-hours per week to avoid overtime pay, what is the total value of lost productivity or amount that would have to be paid to hire new employees to replace the loss in productivity? How does this compare to the cost of allowing the affected employees to work overtime?• Long-term projections:The DOL’s methodology for updating the minimum salary threshold may result in nearly exponential growth. Accordingly, an analysis of the organizational impact over the next three, six, nine and 12 years is often an eye-opening exercise. It is recommended that a long-term analysis be conducted using both the best and worst-case scenarios. Specifically, the DOL’s update projections are exceptionally conservative and represent the minimum possible impact to employers. The worst case scenario (and, more likely) is that the minimum salary threshold will grow exponentially resulting in an annual average of 13.3 percent of exempt employees automatically becoming nonexempt.

3. Determine Current Misclassifications.Many organizations have some employeesmisclassified as exempt from the FLSA. Be-cause the changing overtime regulations arein the news, perhaps now is the time to cleanup any misclassifications without drawing at-tention to past noncompliance.

4. Develop Strategies. Based upon theanalyses conducted above, it is time to makea decision. Which implementation strategy,or combination of implementation strategies,best balances your organization’s cultural

needs with affordability?

5. Communicate Change. Finally, it is im-portant to provide affected employees withindividualized communication explaininghow the revised regulation will affect theirexemption status and pay, as well as proce-dures and policies for tracking time.

It is time to begin taking steps to ensurecompliance by December 1, 2016. A providerexperienced with compensation and humanresources consulting may be able to help

your company identify how to meet the newrequirements with minimal cost. For more in-formation about FLSA compliance, pleasecontact Dennis Spindler at 763-549-2238.

Reprinted with permission of CBIZ, Inc. Copy-right © 2016, CBIZ, Inc. All rights reserved. CBIZis not rendering legal, accounting or other profes-sional advice. Readers are advised to contact atax professional prior to taking any action basedupon this information.


INSURANCE I.Q.


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 quotes frommultiple carriers for property/liability insurance and memberscan choose the program that best fits their situation. As anadded bonus, CBIZ AIA will offer members an exclusive 10%discount on their property/liability insurance premiums. Askabout our program with United Fire Group!

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]

Competitive 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 SOLUTIONSAutoshop SolutionsContact: Margaret Klemmer888-991-3449 / [email protected] members receive a $500 discount off theWebsite Marketing Success Package set-up fee andspecial pricing on template websites starting at just$59/month and $149/set-up (regularly $79/monthand $250 set-up).

Net 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.

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, Direct-Hit.

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

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONSeMarketing SherpasContact: Frank Terlep888-377-2661 / www.emarketingsherpas.comeMarketing Sherpas provides AASP members up to a10-percent discount on its Demand Engine CRMSuite, Review Engine online review and reputationmarketing system and its Digital Lobby point of saledigital signage, menu board and interactive kioskssolutions.

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]: www.180biz.comMembers receive a 20-percent discount on one-on-one sales and management coaching programs (cov-ering financial planning & analysis, strategicmarketing, leadership and personnel development)without long-term commitments. Members also re-ceive a 25-percent discount on monthly sales & man-agement webinars as well as a 20-percent discount onall 180BIZ advisor training programs.

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

CASH IN ON YOUR MEMBERSHIP!

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 fromcustomers every day. When your business features branded workwear and floor mats, clean restrooms and bays, customers trustthat you’re doing things right. This helps you stand out from theshops down the street and keeps customers coming back. AmeriPride Services offers a towel, rug and uniform rentalprogram to AASP-MN members that features discounted prices,annual rebates, free installation, free emblems, no deposits andno set-up charges. With a uniform and facility care product program fromAmeriPride, 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. Weknow that service is more than just doing the job. Excellent serv-ice is the result of going above and beyond. That’s why you’ll seethe same familiar face at every delivery. We know service is morethan a 1-800 number. Service is showing up—every day, no mat-ter what.

Diamond Plate Shop Shirt & Performance Shop Pants andShorts, Manufactured by Red Kap – Available throughAmeriPride The Diamond Plate Shop Shirt is one of the newest additionsto the AmeriPride family of Shop Gear products built specificallyfor car guys. Garage-tested for durability and comfort and in-spired by car culture, it’s loaded with features designed to makedoing your job easier and help you look good while doing it. It’sa shirt that’ll work as hard as you do – day after day, car after car. AmeriPride’s performance shop pants and shorts are uniquein the industry. They come standard with features to make yourjob a little easier—like a cargo pocket on the left leg and double-pockets on the right leg for easy access to phone, keys and toolsand a concealed waistband button to prevent accidental scratch-ing of paint jobs. For more information, visit www.ameripride.com or call:


Documents

AASP-MN News July 2016