DECEMBER 2025 : Volume 7
highlights page 02 Federal DOJ Investigating Auto Dealer PPP Loans page 04 Major Updates to NYC ESSTA for 2026 page 06 Are Your Service Uniforms Compliant? page 10 OSHA’s Most Cited Violations for Auto Dealers in 2025 page 13 GNYADA’s Surety Bonds Saves You Time and Money page 14 Time to Renew Your 2026 GNYADA Membership
The Holiday Season is Here! Join GNYADA to Make a Warm Difference
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1. Become a collection site: Welcome staff, customers, and community members to drop off new or gently used coats. Click here to register. 2. Donate funds to purchase new children’s coats: A donation of $20 provides one new coat for a child in need. Click here to donate. Every participating dealership helps spread warmth and kindness throughout the season of giving and the coldest months of the year. A warm coat offers a child comfort on the way to school and gives adults essential protection during winter, lifting one more burden from families facing difficult circumstances. GNYADA thanks our members who have already joined and encourages others to take part, whether by collecting coats, contributing funds, or spreading the word in their communities. Small actions, multiplied across hundreds of dealerships, make a powerful impact. If your dealership would like to participate or needs help getting started, contact GNYADA at 718.746.5900 or click here.
GNYADA has kicked off its Annual Winter Coat Drive, running from November through February, and member participation is already off to a strong start. In partnership with New York Cares , the Association is once again rallying dealerships across the metro area to collect gently used coats and donate money for the purchase of brand-new winter coats for children and families who need them most. GNYADA members serve as the largest collection site for New York Cares, helping ensure thousands of New Yorkers stay warm throughout the winter season. Over the years, GNYADA members have raised more than $410,000 and distributed over 200,000 coats to New Yorkers in need. This remarkable generosity reflects our dealers’commitment to supporting their communities. More than 80 dealerships have already signed on, and there’s still time to join. Dealers can support the drive in two simple ways:
Federal DOJ Investigating Auto Dealer PPP Loans 02
NADA Director’s Column Robert Vail, NADA Secretary 04
that could help the government bring claims against the borrower under the FCA. The DOJ may initiate its own investigation or open an investigation after an individual files a qui tam action. A qui tam action is a lawsuit filed by a private citizen on behalf of the United States government. This type of lawsuit is expressly permitted under the FCA, and private citizens are incentivized to bring such claims because they are entitled to receive a percentage of the government’s ultimate recovery. With monetary incentives for private actions, and a wealth of publicly accessible information relating to PPP loans, government investigations into PPP loan recipients are continuing. If any dealer receives a civil investigative demand letter or any other communication from the DOJ relating to PPP loans, we strongly advise that they immediately contact their dealer lawyer for assistance. For questions related to this Alert, please contact Shawn Mercer, Esq. (smercer@bsm-law.com) at 919-847-8632 or Richard Sox, Esq. (rsox@bsm-law. com) at 850-878-6404. This communication is intended for educational purposes only and is expressly not intended to provide legal advice.
During COVID many dealers applied for and received PPP loans, as well as forgiveness for those loans, under the CARES Act. Yet, the United States Department of Justice (“DOJ”) and Small Business Administration (“SBA”) are actively investigating entities that the government now believes did not qualify for those loans. One of the primary tools utilized by the government in pursuing investigations relating to PPP loans is the False Claims Act (“FCA”). Generally speaking, the FCA prohibits any person from knowingly submitting, or causing to be submitted, false claims to the government. This is relevant because PPP loan and forgiveness applications required the borrower to make certain affirmative representations, including certifying that they were qualified for the loans under the rules existing at the time of the application. The DOJ is actively investigating instances where businesses certified their qualification for these loans, but available information indicates the entities did not qualify under the applicable rules. These investigations often commence with civil investigative demand letters, which generally seek information about the loans. The government may request information relating to applications, entities that received loans, how money was spent, or any other information
The automotive industry is heading into 2026 with several major developments from the IRS and NADA that impact dealership operations, EV training, and upcoming industry events. IRS Portal Issues Disrupt Clean Vehicle
in partnership with the ASE Education Foundation, the program gives dealerships a flexible, step-by-step model to create and run their own in-store training programs. Full program details will be unveiled at the NADA Show in February. For early inquiries or participation info, contact Megan Dolan at mdolan@nada.org. Mark Your Calendar: 2026 Automotive Forum The next Automotive Forum New York is set for March 31, 2026. This high-profile event brings together top industry voices to discuss the key trends, forecasts, and challenges facing the automotive sector. Expect expert insights, economic outlooks, and valuable networking opportunities. Registration details coming soon. 2026 NADA Show The 2026 NADA Show will take place Tuesday through Friday, February 3–6, 2026 in Las Vegas, with the Expo running February 4–6 . The event will debut a new Tuesday–Friday format, designed to simplify travel and minimize weekend conflicts, and an expanded Expo in the North Hall featuring over 600 exhibitors showcasing the latest solutions in dealership operations, technology, and digital retailing. Dealers can expect cutting-edge insights, fast-paced product demos, and in-depth Super Sessions on emerging topics such as AI and the future of vehicle sales.
Credit Reporting The IRS has reported
ongoing technical problems with the Energy Credits Online portal, affecting clean vehicle credit submissions. While vehicles purchased after September 30 no longer qualify for the credit, the portal remains open for registered users to submit and update time of sale reports. Unfortunately, dealers are now encountering issues accessing the portal to track pending submissions. The IRS is aware and working on a fix. NADA continues to stay in close contact with Treasury and IRS officials to push for resolution and will keep dealers and ATAEs updated as more information becomes available. New EV Tech Apprenticeship Program Approved NADA has secured approval from the U.S. Department of Labor for a new registered apprenticeship program focused on electric vehicle service technicians. Developed
GNYADA Recognized as a Top Trade Association 03
City & State magazine has named GNYADA one of New York’s Top Trade Associations, an honor that places the automotive retail industry alongside the state’s most influential sectors. The new annual ranking highlights associations driving policy, supporting economic growth, and shaping the future of their industries. This recognition highlights GNYADA’s ongoing commitment to advocacy, education, and industry leadership for its dealer members and allied partners. City & State noted that trade associations are essential drivers of New York’s economic landscape, and GNYADA earned its place on the list for championing the interests of auto retailers while fostering job growth, encouraging innovation, and strengthening consumer protections. Being included in City & State’s inaugural “Top Trade Associations” list is a significant milestone for the Association and a testament to the unified efforts of the Board, staff, and membership. Click here to read the full article.
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New York City Council Passes New Pay Equity Reporting Bill 05
Major Updates to NYC Earned Safe and Sick Time Act (ESSTA) for 2026 06 New York City recently amended the Earned Safe and Sick Time Act (ESSTA) , it will take effect on or around February 22, 2026 . • Public Disaster: Including fires, explosions, severe weather, or other declared public
ESSTA. The qualifying reasons for temporary schedule changes under TSCA are now incorporated into ESSTA. While employees may still request temporary schedule changes and are protected from retaliation, employers are no longer required to grant the request, but must respond as soon as practicable and may propose alternatives. What Employers Should Do Now • Update existing ESSTA and TSCA policies by the effective date
a statement certifying the accuracy of the information contained in their report. Employers who fail to comply with the bill’s requirements will face penalties. A first-time violation may be remedied within 30 days of receiving a summons. If the employer does not remedy the violation, it will face an initial civil penalty of $1,000, and each subsequent violation will carry a $5,000 penalty. Citywide Pay Equity Study The second bill, Int. No. 984-A, would work in tandem with Int. No. 982-A, requiring the city to create a pay equity study no later than one year after employers submit their reports, and annually thereafter. This study must evaluate the data from the pay reports to assess disparities in compensation based on gender, race or ethnicity, identify prevalent industries with disparities and track trends in occupational segregation. Dealers who have employees in New York City, or beyond, should carefully watch this legislation for a few reasons. First, New York City legislation sometimes serves
as a laboratory experiment for future statewide legislation. If
The New York City Council has passed two new pay equity reporting bills ( Int. 982-A and Int. 984-A ) now awaiting Mayor Adams’ signature. If enacted, these bills will impose significant new reporting obligations on employers, including many dealerships operating in or near New York City. Annual Pay Reporting for Large Employers The first bill requires employers with 200 or more employees to submit an annual pay report. When determining the number of employees, all full- time, part-time, and temporary employees must be counted. While many employers have fluctuating staffing levels, the count is defined as “the highest total number of employees concurrently employed at any point during the reporting year.” Additionally, an “employee” includes any person who “is employed for hire within the city of New York.” Once the City publishes a standardized form, employers will be required to submit the pay report within the next year and annually thereafter. Employers must also sign
these bills prove successful in the City, it is possible similar reporting requirements could be implemented statewide. The bill is ambiguous as to whether employers with more than two hundred employees, but fewer than two hundred in New York City, would be covered by the bill. It is thus presently unclear whether the employer threshold applies to total headcount or only to employees based in New York City. GNYADA will keep dealers updated on the details of this new law as it develops. GNYADA thanks Bond Schoeneck and King, PPLC for providing the contents of this this article.
emergencies, and situations where officials advise staying indoors or avoiding travel. Caregiving Responsibilities: To care for a minor child or care recipient. Subsistence Benefits/Housing: To attend legal proceedings or take steps necessary to apply for, maintain, or restore subsistence benefits or shelter Workplace Violence: For legal, law enforcement, or social services related to incidents in which the employee or family member is a victim.
The amendments make significant changes to both the ESSTA and the Temporary Schedule Change Act (TSCA). The ESSTA requires covered employers to provide sick/safe leave based on employer size: • 100+ employees: up to 56 hours of paid sick/safe leave • 5–99 employees: up to 40 hours Leave must accrue at 1 hour per 30 hours worked, though employers may front-load. Employees may currently use leave for their own medical needs, to care for a family member, for workplace closures or childcare closures due to a public health emergency, or for domestic violence, sexual offenses, stalking, or human trafficking. Expanded Uses of ESSTA Leave The amendments add new reasons, employees can use ESSTA leave for:
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Track and report paid and unpaid ESSTA leave on pay statements Train supervisors and HR staff to ensure proper compliance and avoid retaliation claims
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Additional Unpaid Sick Time Employers must now provide 32 hours of unpaid sick/safe leave upon hire and on the first day of each benefit year. This time must be front- loaded and available for any ESSTA- qualifying purpose but does not need to carry over.
The NYC Department of Consumer and Worker Protection is expected to issue updated guidance, including revised notices. GNYADA thanks Stephanie H. Fedorka and Rachel E. Kreutzer of Bond, Schoeneck & King for the contents of this article.
Alignment with the TSCA The law realigns the TSCA with the
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If You’re Having a Holiday Party – Consider Your Liability 07
Google’s New Transparency Rules Take Effect for Dealers 09
As the holiday season approaches, many dealerships are gearing up for festive gatherings to celebrate their hardworking staff. While these parties are an excellent way to boost morale and foster team spirit, it’s crucial to be mindful of potential liabilities. GNYADA recognizes the significance of ensuring a safe and enjoyable holiday party, and we recommend the following measures to protect both your employees and your dealership.
Google recently began enforcing new transparency standards for digital ads that feature pricing. Under the new rules, ads must clearly reflect what buyers will actually pay, including all required fees and terms. Offers that rely on fine print, vague disclaimers, or “free” claims that are not truly free are now being flagged and removed. Google’s Updated Policy Any ad that mentions a price or payment must reflect what a buyer will actually pay and how they will be charged. The policy requires advertisers to: • Show clear, complete pricing so users understand the true cost before purchase. • Avoid misleading formats or omissions, including hidden fees or undisclosed conditions. • Describe pricing and payment terms in plain language, so recurring charges or payment structures are obvious. • Use “free” only when no payment or obligation exists. • Ensure consistency between the ad and the landing page so users are not misled after clicking. Examples of Violations • Ad says “$299/month, $0 down” - requires $3,000 due at signing with no disclosure. • “New F-150s starting at $39,999” - no vehicle actually listed at that price on the website. • “0.0% APR on all models” - financing applies to only one or two models. • “Dealer fee included” - checkout adds a $699 processing fee.
• Vehicle Listing Ad shows $45,500 - feed not updated, website now shows $46,995. Why It Matters Google’s advertising standards update did not occur in a vacuum. It arrived at the same time regulators have been turning their attention to “junk fees” and deceptive pricing practices in retail advertising. Although Google is not a regulator, its control over online search and advertising gives it more influence on marketplace behavior than most government agencies. Staying Compliant • Review all active ad copy to confirm pricing accuracy. • Make sure landing pages display the same prices, terms, and conditions as the ad. • Use clear, visible disclaimers rather than small or hard- to-read fine print. • Avoid vague “free” or “limited-time” language unless it is fully explained. GNYADA thanks ComplyAuto for the contents of this article. To read the full article, click here.
HOLIDAY PARTY TIPS FOR DEALERSHIPS:
1. Keep Alcohol in Check If you serve alcohol, remove the opportunity to drink to excess by serving drinks during a limited time and offering only beer and wine. 2. Make Attendance Optional Party attendance should be voluntary, with no penalty for absence. 3. Reinforce Workplace Conduct Rules Remind staff that your dealership’s anti-harassment and anti-discrimination policies apply at all work- related events.
4. Review Safety & Insurance Coverage Confirm the venue meets safety standards, check whether Workers’ Comp applies, and review general liability and EPLI coverage before the event. 5. Keep It Inclusive Avoid tying the event to any particular religion, refer to it as a “holiday party” to create an inclusive atmosphere.
If you have questions, contact the association at 718.746.5900.
Are Your Service Uniforms Compliant? 08
Scotchgard™, may no longer be legal to purchase or sell in New York. Some protective gear (like flame- resistant coveralls or chemical splash suits) may be exempt, but standard service uniforms are not. What Dealers Should Do • Check your uniform supply for PFAS treatments. • Ask your vendor for documentation that confirms uniforms are PFAS-free.
New York State now prohibits the sale of uniforms containing intentionally added PFAS (per- and polyfluoroalkyl substances), a class of synthetic chemicals often used for stain, water, and grease resistance. If your dealership supplies uniforms for technicians, service advisors, porters, or lot attendants, this law likely affects you. Many commonly used uniforms, especially those treated with PFAS- based coatings such as Teflon™ or
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Avoid buying uniforms with “stain-resistant” or “water- repellent” labels unless verified PFAS-free.
Juliana Terian Named Chair of the New York State Auto Dealers Association 10
Don’t assume your current uniforms comply. Start talking to your vendor now, and make sure your next order meets the legal standard. PFAS-free options are already available. GNYADA’s DDC vendor, Cintas , offers fully compliant uniforms. For more information, contact Dominic Zanfardino at 631.617.8368.
GNYADA congratulates Juliana Terian, President and CEO of Rallye Motor Company, on being named Chair of the New York State Automobile Dealers Association. She assumed the role on November 13, 2025, during the Association’s Annual Meeting at the Grand Hyatt Baha Mar. Terian is a respected industry leader with decades of experience, and she brings steady vision and strong leadership to the position. GNYADA wishes her the best of luck in her new role.
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Beyond the Lot: Key Legal Insights GNYADA Members Should Know 11
The First Year of New York’s Paid Prenatal Leave 12
such as a pay stub or pay statement informing them of the amount of leave used. Employers must also maintain a written paid prenatal leave policy that must be distributed at the time of employment. Employers may still require reasonable written documentation from the employee related to prenatal leave, but may only do so if the absence was for more than three (3) consecutive days. Employers, however, remain forbidden from requesting information about the employee’s condition. Employees cannot be forced to use or exhaust other leave in lieu of paid prenatal leave, but an employee may elect to change her schedule instead of using prenatal leave.
are automatically entitled to this benefit. With that said, only pregnant employees may use paid prenatal leave, not their spouse or partner. Dealers who operate in New York City should also be aware of recent rules promulgated by the Department of Consumer and Worker Protection (“DCWP”). These rules go beyond state law and were effective as of July 2, 2025. The DCWP’s rules incorporate most of the state’s paid prenatal leave requirements while also adding new obligations for employers. These DCWP policies require NYC employers to provide an employee who uses prenatal leave with a written record related to use of that leave,
In 2025, New York State became the first state to mandate paid prenatal leave. The law went into effect on January 1, 2025 and requires private sector employers to provide pregnant employees with 20 hours of prenatal personal leave during any 52-week period. The leave can be used for pregnancy related health care appointments, such as physical examinations, medical procedures, monitoring, testing, discussions with a health care provider to ensure a healthy pregnancy, end of pregnancy care and fertility treatment. To be eligible for paid prenatal leave, employees do not need to work for a specified period of time: all employees, including newly-hired employees,
As the automotive retail world turns, the Fall Conference for the National Association of Dealer Counsel (NADC) held in Chicago recently did not fail to provide some key and important insights for franchised dealers. Here are some of the highlights: Sales Effectiveness After several years of landmark cases favoring dealers (e.g., Beck, Folsom, Santa Cruz), manufacturers have retreated from primarily using sales effectiveness to exert control over their franchises. In its place have come a variety of efforts meant to exert control in other areas like discretionary allocation, tiered margin programs, framework agreements, buy-sell approvals, and add-point selections. Dealers need to be wary of OEM (actions) in these and other areas now that sales effectiveness is not as potent a tool as it once was. FTC Enforcement The National Automobile Dealers Association (NADA) reports that despite no longer focusing on rulemaking under the current Administration, the Federal Trade Commission (FTC) is still very active in enforcing existing laws regarding unfair and deceptive acts and practices, particularly on F&I products. Transparency is the theme that runs through much of the FTC’s disclosure requirements so consumers can make educated purchases. This kind of transparency is covered in NADA’s “Know Before You Buy” dealer guide, which has important best practices that dealers need to consider. Direct Sales Litigation related to Volkswagen affiliate Scout Motors is winding its way through courts in Florida and California. The results in both cases will have a lasting impact on the franchise model in these states, as well as all states across North America and franchisees across all brands. Some manufacturers have already made moves in anticipation of a favorable outcome for Scout. For example, Honda affiliate Afeela is already taking reservations in California from potential customers. Some dealers believe that taking reservations is part of the process of “selling” vehicles under California law (note: we have seen no activity in New York as of this writing).
EVs In a trend that pretty much every dealer saw coming, NADA reports that there are still more than 140,000 electric vehicles (EVs) sitting
on dealership lots that must be sold. This inventory will weigh heavily on dealer profits until dealers sell through all of it. That task will be more challenging without federal EV tax credits. Market preferences will not help either — US sales of battery-based EV’s are flat this year versus last year. Even regulators in California, where one in five new vehicles purchased is an EV, do not believe that they could have met the Biden-era EV targets for 2030. What still lies in front of us is a Biden-era EPA rule that mandates EV sales starting in 2027. NADA, dealer groups and other stakeholders are working to have this rule eliminated. Right to Repair While automotive right to repair legislation exists in Maine and Massachusetts, it is still under consideration by Congress as a nationwide requirement. Both NADA and OEM-backed Alliance for Automotive Innovation continue to push back at this effort, stating that the issue is one for the states to decide. Additionally, NADA is arguing that the support of for this legislation by independent repair shops has more to do with them acquiring customer data information and part specifications that they can use to build knock off parts. GNYADA thanks Kevin E. Timson, ArentFox Schiff LLP for this article. If you have questions on this or anything else, please contact him at kevin.timson@ afslaw.com or 347-451-4777. This communication is provided by ArentFox Schiff LLP for educational and informational purposes only and is not legal advice or an opinion about specific facts. No attorney-client relationship is created, nor is this a solicitation or offer to provide legal services. If you have any questions about the content of this publication, please contact your ArentFox Schiff attorney or any of the contacts listed above.
What OSHA’s New Chemical Safety Rules Means for Your Dealership 13
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Replace old SDSs with the new ones as they arrive Update workplace labels on bottles, spray containers, and tanks used in the shop Retrain service staff on any new labeling or safety data information Revise your written HazCom program to reflect the new standard before the July 2026 deadline
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Reevaluate and reclassify their chemicals under new criteria Update SDSs with revised hazard information and formatting Provide clearer, standardized product labels Begin shipping substances with new labels and SDSs by January 19, 2026
If your service department handles chemicals, and every dealership does, there are new federal safety rules coming your way. OSHA has updated its Hazard Communication Standard (HCS), and the changes will impact how chemical hazards are labeled, documented, and communicated in your shop. While your dealership has until July 20, 2026 , to be fully compliant, the countdown has already started. Chemical manufacturers are now required to update Safety Data Sheets (SDSs) and product labels to reflect the new rules. As those new documents hit your shelves, your responsibilities kick in. What Manufacturers Are Doing Under OSHA’s updated standard, manufacturers must:
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These updates are designed to improve safety, reduce confusion, and align U.S. rules with international standards. What Your Dealership Needs to Do As soon as your suppliers start sending updated SDSs or labels, you need to act. Dealerships must:
Manufacturers are moving first, and dealers will need to follow. Don’t wait until the last minute. Start reviewing your chemical inventory, talk to your vendors, and update your safety documentation as changes roll in.
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OSHA’s Most Cited Violations for Auto Dealers in 2025 14
Essential Year-End Business Tax Planning Strategies for 2025 15
As 2025 wraps up, dealership owners should reassess their tax strategy, especially with major changes under the One Big Beautiful Bill Act (OBBBA). Smart year-end planning can lower tax bills, improve cash flow, and free up funds for upgrades, EV infrastructure, staffing, or training in 2026. One key change: 100% bonus depreciation is back for qualified fixed assets placed in service after January 19, 2025. This lets dealers fully deduct costs upfront for items like service equipment, EV tools, IT systems, and facility improvements. Combined with expanded Section 179 expensing, it may make sense to move 2026 purchases into 2025. Property owners might also benefit from a cost segregation study to accelerate depreciation on parts of their building. OBBBA also changes the tax landscape for business structures. S-corporations and partnerships remain common, but enhanced pass-through deductions and favorable rules for C-corp stock may shift the math for some owners. This is a good time for family-owned dealers to review entity choice with succession or expansion in mind. Switching accounting methods could also cut 2025 taxes. Moving from accrual to cash, or changing how advance payments and warranties are reported, can defer income and boost cash flow. Some dealers have saved six figures
inspection | $5,909 in fines 11. The control of hazardous energy (lockout/tagout), General Industry (1910.147) – 2 violations | 1 inspection | $0 in fines 12. General requirements for all machines, Machinery and Machine Guarding, General Industry (1910.212) – 2 violations | 2 inspections | $4,220 in fines The most commonly cited items under the HAZCOM standard include: • Not having a written program • Not having safety data sheets (SDSs) available/ accessible • Secondary container labeling • Employee training on chemicals in the workplace If you are interested in learning more on how to prevent OSHA violation and having a free safety work inspection, contact Kelsey at GNYADA by calling 718.746.5900. How a Site Audit Can Help Conducting regular facility audits is an essential step in improving workplace safety and ensuring compliance. Whether performed internally or with the help of an experienced Environmental, Health, and Safety (EHS) consultant, audits help identify potential violations and overlooked risks. Knowing the most common issues in your industry can guide your review, allowing you to correct problems before they lead to fines or incidents. Beyond compliance, consistent audits show a commitment to employee wellbeing and help build a strong safety culture throughout your organization. GNYADA thanks Walden Environmental Engineering for this article. For more information about Walden Environmental Engineering visit waldenenvironmentalengineering.com.
Each year, the Occupational Safety and Health Administration (OSHA) releases data on its most frequently cited standards. Understanding these common violations helps dealerships identify potential issues in their facilities and address them before they become costly problems. The violations listed below were issued to new car dealers (NAICS 441110) between October 2024 and September 2025. We encourage dealers to pay close attention to these areas, as they represent the 12 citations most commonly issued to new car dealerships over the past year. 1. Hazard Communication, General Industry (1910.1200) – 20 violations | 10 inspections | $45,141 in fines 2. Powered industrial trucks, Materials Handling and Storage, General Industry (1910.178) – 5 violations | 3 inspections | $28,965 in fines 3. OSH Act General Duty Paragraph (Section 5(a)(1)) – 5 violations | 5 inspections | $24,878 in fines 4. Reporting fatalities, hospitalizations, amputations, and losses of an eye as a result of work-related incidents to OSHA, Incident Recording and Reporting (1904.39) – 4 violations | 3 inspections | $24,067 in fines 5. General requirements, Personal Protective Equipment, General Industry (1910.132) – 4 violations | 4 inspections | $20,210 in fines 6. Medical services and first aid, General Industry (1910.151) – 4 violations | 4 inspections | $19,761 in fines 7. Wiring methods, components, and equipment for general use, Electrical, General Industry (1910.305) – 4 violations | 2 inspections | $24,113 in fines 8. Asbestos, Toxic and Hazardous Substances, General Industry (1910.1001) – 3 violations | 1 inspection | $0 in fines 9. Annual summary, Other OSHA Injury and Illness Recordkeeping Requirements, Incident Recording and Reporting (1904.32) – 2 violations | 2 inspections | $284 in fines 10. General requirements, Walking-Working Surfaces, General Industry (1910.22) – 2 violations | 1
with these timing strategies. A CPA can advise on whether it’s right for you. Several tax credits and deductions are phasing out, especially for energy-related upgrades. Dealers planning solar, EV charging, or efficiency improvements should check timelines now. Year-end is also a good time to deduct prepaid expenses, bonuses, bad debts, and obsolete inventory. With more changes ahead in 2026, now is the time to review your tax plan. Meeting with your advisor before year-end can uncover savings and position your dealership for a stronger start to the new year. GNYADA thanks CliftonLarsonAllen for the contents of this article.
16 Holiday Pay Policies
Depending on an employee’s classification, dealers may be required to pay employees who have off on Christmas and New Year’s Day. Labor attorneys recommend having a written holiday pay policy for all employees. If you don’t have one, follow your historical practice, if you’ve previously paid employees their regular rate when a holiday fell on their scheduled workday, you should do the same this year. Hourly Employees: • If the employee did not work on the holiday, no pay is required.
days/hours worked. There are some exceptions, but holidays are not among them. Overtime: If you pay non-exempt employees for hours they would have worked but for the holiday, those hours do not count toward overtime calculations. If your dealership offers paid holidays, State law requires notifying employees through an employee handbook, memo, or posted notice. The best practice is to have—and follow—a written policy. If you need help creating one, contact GNYADA at 718.746.5900.
for hours worked. The State does not mandate time and a half pay for hourly employees. (Note: check with your collective bargaining agreement (CBA) for union employees.) If the holiday does not fall on a scheduled workday, no pay is required. Salaried/Exempt Employees: Employees who fall under the Administrative, Executive, Professional, or Highly Compensated exemptions receive full salary for • any week in which they perform any work, regardless of the number of
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AI in Automotive Retail 18
About 60% of dealers are currently testing AI tools, and nearly 15% have started integrating AI into workflows and decision-making. Marketing is the most common starting point because it provides quick, measurable results. Popular use cases include: • 24/7 automated customer engagement through chat, text, or email (52%) • Personalized communications tailored to buying behavior (48%) • Predictive analytics identifying customers most likely to purchase (39%) What’s Holding Dealers Back Despite growing interest, many dealers remain cautious: • 74% are concerned about accuracy or errors
Artificial intelligence (AI) is quickly becoming a part of automotive retailing. Not just a futuristic concept. A new Cox Automotive study, AI Readiness in Auto Retail, reveals that dealerships are increasingly recognizing AI as a business necessity. According to the report, 81% of dealers believe AI is here to stay , and 63% say investing in AI now is essential for long-term success . “ Dealers don’t care about AI for AI’s sake, ” said Lori Wittman, President of Retail Solutions at Cox Automotive. “They care about outcomes they can measure—more cars sold, lower inventory costs, higher gross profit. That’s why we’re focused on delivering results, not just pushing technology.” Where AI is Being Used Today Dealerships are starting their AI journey in practical areas that help them to learn and build trust. Marketing, sales, back office, F&I, and service are the main entry points.
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60% feel uneasy about data and algorithms 66% seek more education and training before expanding usage
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With the average dealership already managing 40+ software systems, the growing marketplace of AI- powered tools can feel complex and overwhelming. Dealers are seeking clarity on what works, what doesn’t, and which tools truly impact profitability rather than simply adding another login. As shoppers continue to move fluidly between online research and in-store purchasing, AI offers opportunities to personalize engagement, optimize pricing strategies, and build customer confidence more consistently. GNYADA thanks Cox Automotive for the contents of this article. Click here to view the full study.
Three Strategies to Build Smart Health Insurance Plans 17
specialty medications, are rising rapidly. Review your pharmacy program each year with your pharmacy benefit manager (PBM) or insurer to ensure its still working for you. Your review should include: • Updating contract terms to stay competitive. • Reviewing trends in generics, brand names, and specialty drugs. • Checking alternative funding programs that help offset expensive claims. A financially viable health plan does not just save money, but it helps your dealership attract and retain good employees. By using data wisely, addressing high-cost conditions, and keeping your pharmacy program current, you can build a plan that supports both your team’s health and your bottom line. For any questions regarding your dealership’s health plans, please contact Mike Conway from the GNYADA Insurance Brokerage, at mconway@gnyada.com.
issues are most common among your employees. Then, consider adding programs that encourage better habits and preventive care. Affordable marketplace solutions like wellness coaching or condition management tools can engage your staff and reduce long-term costs for both your employees and your dealership. 2. Help Employees Shop Smart for Care - Healthcare costs can vary widely, even for the same procedure. When employees understand those differences, they can make better choices without sacrificing quality. Tools that provide cost and quality comparisons help employees choose the right provider.. Combining these tools with models like Reference-Based Pricing which sets fair, predictable limits on what your plan pays can add financial stability and transparency. 3. Optimize Your Pharmacy Program Prescription drug costs, especially
A financially sound health plan is just as important as keeping your dealership’s operations running smoothly. With the right approach, you can stay ahead of rising costs while supporting a healthier, more productive team. Digging into your health benefits data helps you understand employee needs and spending patterns, but staying ahead requires tools that help you look forward and not just back. By comparing your plan coverage to industry benchmarks, you can spot potential cost drivers early and turn numbers into smarter health plan decisions. Knowing what drives your costs is only half the battle. The next step is applying that knowledge to manage them effectively. The following are three proven strategies that data can help your dealership put into action. 1. Address High Costs of Chronic Conditions – Chronic conditions like diabetes, health disease, and obesity are major contributions to health plan expenses. Use your analysis to identify which health
GNYADA’s Surety Bond Saves You Time and Money 19
automatically renewed prior to cancellation. All New Car dealer bonds are effective for 2 years.) Contact your insurance agent or bonding company early if you need renewal paperwork issued. Confirm that your dealership name (inclusive of corporate name and dba (if applicable)) address, and ownership details match, across all DMV and bond documents.
As we approach the end of the year, now is the perfect time for dealers to review upcoming renewal dates for both facility licenses and dealer bonds to ensure there are no interruptions in your dealership’s operations. Dealers should: • Review your facility’s license expiration date (found on your DMV Official Business Certificate).
Need a New Bond or Renewal? GNYADA Can Help. Through GNYADA’s Surety Bond Program, members can take advantage of the lowest rates in the state and a simple, streamlined application process with no credit checks, financial statements, or additional fees for riders. Most bonds are processed within 24–48 hours, saving dealers time and effort. If you have questions or need assistance with a facility or bond renewal, contact the Association at 718.746.5900.
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Check the effective and expiration dates listed on your surety bond. This date does not always coincide with the date on your facility license. (If you have your bond through GNYADA, your bond is
Completing this review now will help ensure a smooth start to the new year without any compliance surprises.
P 12 DECEMBER 2025 The Newsletter
DECEMBER 2025
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The Newsletter
Unemployment Insurance Rate Changes in 2026 20
Dealers can expect changes in unemployment benefits in 2026. The State recently paid off its debt to the Unemployment Insurance Trust Fund, allowing officials to substantially increase benefits for eligible workers and reduce costs for employers. As a result, contribution rates—which had climbed in recent years— may begin to fall or at least hold steady. The savings stem from the debt repayment, which restores the Fund’s solvency and eliminates the annual Interest Assessment Surcharge, saving employers about $100 per employee in 2026. Although employers should no longer receive annual surcharge bills, New York has raised the taxable wage base for UI contribution payments in the coming years, and the total cost of UI claims will increase moving forward.
Dealers should pay attention to New York’s unemployment insurance in 2026, especially as economic headwinds, tariffs, and the labor market continue to shift. Dealers are also reminded that they must provide departing employees with the New York State Department of Labor’s Notice of Employment (Form IA12.3), which employees may use to initiate unemployment claims. The form should be given to all departing employees (not only those fired or laid off) and does not determine whether benefits will be collected. Dealers should continue to contest claims from employees who quit without good cause or who were discharged after committing misconduct.
Time to Renew Your 2026 GNYADA Membership 21
newsletters so you don’t get blindsided by regulatory changes. As an added benefit, all members receive one free classroom rental at the Center for Automotive Education & Training (CAET) a valuable opportunity to host staff meetings and trainings, at no cost. When you renew, we also encourage you to look at GNYADA’s Employee Relations Plan (ERP) . For $695 a year, ERP gives you access to experienced labor attorneys who help you avoid costly mistakes. One HR issue can cost more than an entire year of ERP membership. If you’ve already sent in your renewal, thank you. If you haven’t, please return your invoice with payment or call the association.
value of membership; we’re working for you every single day. Whether it’s pushing back against anti-dealer legislation, fighting for warranty reimbursement, or monitoring DMV and tax rules, our team is constantly handling the issues that affect your store’s operations and profitability. A large part of GNYADA’s work is day- to-day support: • Help with DMV, tax, advertising, and labor questions, real answers, not guesswork.
As we wrap up the year, thank you to everyone who has already renewed their membership. We’re approaching 85% renewal, which shows just how much members value the Association’s work. If you haven’t renewed yet, please send your invoice back soon so your benefits continue uninterrupted. GNYADA represents over 400 franchised new-car dealers in the 12 downstate counties, accounting for nearly 65% of all new-vehicle sales in New York State. When we speak to Albany, regulators, or the media, we speak for the dealers who sell and service most of the vehicles in this region. Membership keeps that voice strong and unified. You don’t need a crisis to see the
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Education and training at CAET and through our weekly webinar series, so your team stays sharp and up to date. Timely communications, Dealer Alerts, legal updates, and
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Greater New York Automobile Dealers Association | 18-10 Whitestone Expressway, Whitestone, NY 11357
DMV-DIRECT: 718.747.0400 GNYADA Insurance Brokerage, LLC: 718.746.8100
New York International Auto Show: 718.746.5300 Center for Automotive Education & Training: 718.640.2000
Dealer Hotline: 800.245.4640 Headquarters: 718.746.5900 Email: communications@gnyada.com
The information contained in this newsletter may not be relied upon for the avoidance of tax penalties. Readers are urged to discuss any issues raised in this newsletter with their legal and tax professionals. All original material except where noted. © GNYADA 2025
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