Dealership Compliance: How to Get Ahead of the Latest Regulations

By Beth Kempton,
May 5, 2017

Staying compliant with ever-changing state and federal regulations can be an administrative headache for any dealership. But failing to comply can lead to a wide range of consequences, including fines, penalties, and damage to your dealership’s reputation.

How can you maintain compliance at your dealership? One way is by implementing an integrated hiring and human capital management solution. Many dealerships run most HR processes manually – from sourcing, hiring, onboarding, and benefits administration, to time and attendance tracking – posing a risk for human error while potentially overlooking new compliance regulations. With an integrated hiring and human capital management solution in place, you can have all the tools and reporting necessary to stay compliant at all times.

Not only can moving away from manual HR processes help your dealership stay compliant, but it can also save you time and money in the long run. Below are several of the key regulations dealerships have to keep up with – which can be overwhelming and time consuming.

Employee Verification

Before extending an offer to any candidate, you must verify his or her identity and employment authorization. Recent regulations by the Departments of Justice, Labor and Homeland Security have made employment authorization measures much stricter, with fines for certain I-9 violations increasing by as much as 96 percent. E-Verify automation and integration through your HR software can ensure all employees at your dealership have employment verification, so you can avoid severe fines and other penalties.

E-Verify guarantees complete accuracy and compliance, as opposed to having new employees fill out paper forms to verify their identities. It also saves your business time, by requiring employees to fill out the forms on their own time before their first day, rather than spending time on the job filling out paperwork. In fact, according to a recent survey of human resources professionals, a majority of employers support mandatory use of E-Verify.

Tax Compliance

Similar to the switch from paper to digital forms for employee verification, automated taxes and reporting take the tax compliance burden off your plate. A human capital management solution handles tax compliance for you, including electronic IRS filing and pay withdrawals, quarterly online tax statements and W2 preview, and new hire reporting.

Minimum Wage and Overtime Compliance

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards for full-time and part-time workers in the U.S. Minimum wage and overtime pay can get particularly tricky for
dealerships when it comes to automotive technicians and flag time pay. The Department of Labor mandates each employee must be paid at least minimum wage, so if your service department has a slow week, your dealership would need to pay employees a “minimum wage makeup” to ensure you stay compliant with labor laws. Additionally, if you own a dealership with locations in multiple states, you have to comply – and stay up-to-date – with state-to-state minimum wage and overtime regulations. Human capital management technology offers reporting and tracking to stay compliant with FLSA.

Employee verification, tax, and minimum wage and overtime are just a few examples of compliance regulations your dealership has to track. Others include:

  • Equal Employment Opportunity Commission (EEOC) Compliance: The EEOC investigates workplace discrimination complaints based on an individual’s race, children, national origin, religion, sex, age, disability, gender identity, genetic information, and retaliation for reporting, participating in, and/or opposing a discriminatory practice.
  • Occupational Safety and Health Administration (OSHA) Compliance: Under the OSH Act, employers are responsible for providing a safe and healthful workplace. OSHA’s mission is to assure safe and healthful workplaces by setting and enforcing standards, and by providing training, outreach, education and assistance.
  • Affordable Care Act (ACA) Employer Mandate: Under the ACA employer mandate, all businesses with 50 or more full-time equivalent employees (FTE) must provide health insurance to at least 95% of their full-time employees and dependents up to age 26, or pay a fee.
  • Family and Medical Leave Act (FMLA) Compliance: FMLA applies to all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees. These employers must provide an eligible employee with up to 12 weeks of unpaid family and medical leave each year for the birth or adoption of a child, to care for an immediate family member with a serious health condition, or to take medical leave due to a serious health condition.

Keeping up with constantly changing compliance regulations – on both a state and federal level – can be a full-time job in itself. Rather than tasking your human resources department with tracking each and every compliance regulation, you can partner with an integrated hiring and human capital management solution, which provides all the tracking and tools you need to stay compliant.

Interested in learning more about how to automate and improve your dealership’s compliance? Read about our payroll solution here and and schedule a demo today.

About the Author

Beth is the content strategist on Hireology’s marketing team, responsible for creating compelling blog posts, eBooks, marketing materials and other content. Her background includes five years of experience at a B2B digital marketing agency, where she crafted content for a variety of clients, including several in the HR technology space. Before beginning her career, Beth attended Loyola University Chicago, where she studied advertising and public relations.

Subscribe to our weekly newsletter and learn how to build your best team.