GNYADA December Newsletter

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

•

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

•

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:

•

Update mixtures by July 19, 2027

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.