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Coronavirus Documents

Updated September 24, 2020


Fine, Boggs, and Perkins LLP created the above forms for dealers who have employees that are unable to work due to COVID-19 experiences.


Updated August 3, 2020

Developed by Fine, Boggs, and Perkins LLP, this document outlines different response scenarios that should be considered when employees are either exposed to or contract the COVID-19 virus. Considerations include proper cleaning procedures, notifying other employees, leave requirements, OSHA reporting, and Worker’s Compensation issues.

This response checklist is designed to be used in conjunction with the Leave Request Form (see below)


Updated on July 20, 2020

CNCDA and Fisher & Phillips LLP collaborated to provide you with a table describing specific local health orders.


Updated May 6, 2020

To help businesses understand how the workers’ compensation presumption works, the California Chamber of Commerce and the Mullen & Filippi law firm created a “COVID Claim Presumption Flowchart.”


Updated on May 14, 2020

Fine, Boggs, and Perkins LLP have developed the materials above to help guide members through the adoption of a workplace specific COVID-19 plan, employee training on COVID-19, and daily symptom checks for employees.


Updated on May 29, 2020

The above analysis, provided by Fine, Boggs, and Perkins LLP, details important information on the Paycheck Protection Program (PPP), including loan forgiveness.


Updated May 3, 2020

Fine, Boggs, and Perkins created a document that reviews what Executives and Human Resources should be aware of when it comes to COVID-19 in the workplace.


Updated April 17, 2020

To provide dealers with specific guidance on online sales, remote work, and home deliveries, CNCDA asked the Arent Fox law firm to prepare a memorandum on this issue.


Updated April 17. 2020

Arent Fox designed the sample checklist to help dealers implement an online sales and remote delivery program at their dealership.


Updated on May 14, 2020

The recall letter, created by Fine, Boggs, and Perkins LLP, notifies employees that their furlough has ended.


Updated on April 16, 2020

Fine, Boggs, and Perkins LLP suggests that if you are adjusting your employee’s pay to maximize Paycheck Protection Program (PPP) loan forgiveness, you should consider using the pay plan addendum. 


Updated on April 2, 2020

When rehiring employees, it’s critical that employers use a reinstatement agreement that clarifies that the old employment agreements are still in effect. Fine, Boggs, and Perkins LLP created the document above to make it easier for dealers to reinstate their employees effectively.

COVID-19 Member Toolkit

Coronavirus Webinars

Coronavirus Laws and Your Dealership: Part V

August 6, 2020

Coronavirus Laws and Your Dealership: Part IV

June 16, 2020

PPP Loan Forgiveness for Auto Dealerships

June 3, 2020

HR Hotlink COVID-19 Compliance Resources

May 28, 2020

Coronavirus Laws and Your Dealership: Part III

May 14, 2020

EPIC Brokers & Consultants Webinar: COVID-19 Impact on Your Insurance Policies…What You Need to Know

April 23, 2020

Coronavirus Laws and Your Dealership: Part II

April 16, 2020

Coronavirus Laws and Your Dealership: Part I

March 31, 2020

Dealership Coronavirus FAQs


Operations

How do the state and local orders impact dealership operations?

The State of California and various local jurisdictions have issued orders that impact dealership operations. Copied below is an outline summarizing this information.

Statewide Operation and Health Requirements. All dealerships in California should review and implement the statewide guidance on COVID-19 dealership operations. (Click here.) All dealerships should post a copy of the state COVID-19 checklist to demonstrate that they are reducing the risk and are open for business. (Click here.)

On July 24, the California Department of Public Health issued a “COVID-19 Employer Playbook” that summarizes key requirements to operate a business in the current pandemic environment. This includes following industry-specific guidance and checklists and response protocols for when employees contract COVID-19. You can download the COVID-19 Employer Playbook by clicking here.

Local Health Requirements. Cities and counties throughout California have adopted restrictions on business operations that are designed to promote public safety. These restrictions vary, but they include face mask, employee screening and social distancing requirements. Most dealerships in California will need to implement and post the social distancing protocol required in their local jurisdiction. LA County dealers should note that they must implement a dealership-specific reopening health protocol. (Click here.) For the most current information, visit your local jurisdiction’s website.

CNCDA members can download the current List of Local Health Orders here.

The following is an outline of the status of in-person vehicle sales in California as of June 18, 2020:

Vehicle Sales in California, Generally. As of July 12, all local jurisdictions allow California dealerships to conduct in-person vehicle sales. Showrooms may be open to customers, but occupancy may not exceed 50% of maximum, and state and local health requirements must be observed.

Online Sales and Remote Deliveries. All dealerships in California may sell vehicles electronically and deliver them to essential businesses and to customer residences. The DMV issued a memorandum on online sales, which you can access here.

To provide dealers with specific guidance on online sales, remote work, and home deliveries, CNCDA asked the Arent Fox law firm to prepare a memorandum on this issue. You can access the memo and checklist here.

Service and Parts Sales. All jurisdictions allow dealerships to operate their service and parts departments, so long as appropriate health and safety requirements are in place.

Dealers should note that there continues to be substantial confusion on vehicle sales at the local level. In the event you receive an order to shut down, you should follow it. However, you may want maintain copies of the state order and present such documents to law enforcement to show them that you are operating in compliance with the state order. Please note that this will not protect you if you operate in a jurisdiction covered by a local order that restricts vehicle sales, discussed above.

Health Requirements

Do I need to adopt special health protocols at my dealership?

Statewide Operation and Health Requirements. All dealerships in California should review and implement the statewide guidance on COVID-19 dealership operations. (Click here.) All dealerships should post a copy of the state COVID-19 checklist to demonstrate that they are reducing the risk and are open for business. (Click here.)

Local Health Requirements. Cities and counties throughout California have adopted restrictions on business operations that are designed to promote public safety. These restrictions vary, but they include face mask, employee screening and social distancing requirements. Most dealerships in California will need to implement and post the social distancing protocol required in their local jurisdiction. LA County dealers should note that they must implement a dealership-specific reopening health protocol. (Click here.) For the most current information, visit your local jurisdiction’s website.

CNCDA members can download the current List of Local Health Orders from Arent Fox here.

Some protocols (such as the Bay Area protocols) require businesses to adopt a procedure to check for symptoms of employees prior to them entering the work space. Fine, Boggs, and Perkins LLP has developed an Employee Symptom Check and Privacy Notice form, which can be accessed on their website under the “Legal Updates” tab.

Must employees and customers wear face coverings?

Generally, yes. On June 18th, the California Department of Public Health issued guidance requiring Californians to wear face coverings statewide in many circumstances, including in most public indoor settings (such as inside dealership showrooms). Workers must wear face coverings in many additional circumstances, such as when they are working in spaces visited by members of the public or when they are unable to physically distance from others. Dealers throughout California are encouraged to promptly review this guidance, which can be accessed by clicking here.

Employees

I need assistance on employment issues. Where should I go?

The Fine, Boggs, and Perkins LLP firm has developed new FAQs and other documents, which assist dealers on critical questions involving coronavirus related matters, including the new federal leave law and recent changes to layoff procedures under the sate WARN Act. You can receive copies of these resources on the legal updates potion of their website.

The California Labor and Workforce Development Agency (LWDA) also has a dedicated website on coronavirus resources for employers and workers. These resources include a FAQ on relevant California laws and website that provides a helpful chart that identifies benefits for workers impacted by the coronavirus.

Governor Newsom also signed an executive order creating a workers’ compensation presumption that makes it much easier for employees to qualify for benefits if they test positive for COVID-19. To help businesses understand how this presumption works, the California Chamber of Commerce and the Mullen & Filippi law firm created a “COVID Claim Presumption Flowchart.” You can access the chart by clicking here.

Forms

The most up to date employment forms can be found here.

Federal Paid Leave Requirements (FFCRA)

The US Department of Labor’s (DOL) website contains various helpful resources on the Families First Coronavirus Response Act (FFCRA), including a Q&A page and a downloadable poster (which employers are required to post under the law). You can access the DOL’s website here.

CNCDA dealer members can also contact Fine, Boggs, and Perkins LLP free of charge as a CNCDA member benefit. Their contact information is:
(650) 712-8908 (Half Moon Bay Office)
(858) 451-1240 (San Diego Office)
(562) 366-0861 (Long Beach Office)

Government Benefits

How can I apply for a forgivable loan through the Paycheck Protection Program?

CNCDA encourages its dealer members to consider applying for a loan through the Small Business Administration’s Paycheck Protection Program (PPP). These loans are designed to equal 250% of your dealership’s pre-crisis payroll (up to $10 million), and loan amounts can be forgiven if you retain or rehire your workforce.

On June 5, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA). The PPPFA makes many favorable changes to the Paycheck Protection Program (PPP). Key changes include:

  1. The PPP’s “covered period” is extended from 8 weeks to 24 weeks. This makes it easier for businesses to receive a higher amount of loan forgiveness, as businesses will be able to use qualifying expenses over a much longer period in their loan forgiveness application. The PPPFA also clarifies that businesses that have already obtained PPP loans can still use an 8 week covered period in their forgiveness application.
  2. The PPP relaxes the ratio of payroll expenses to other expenses from 75-25 to 60-40. Coupled with the extension of the covered period, this makes it easier for businesses to maximize their loan forgiveness, as it will be less likely that a business’s payroll expenses will constrain loan forgiveness.
  3. The PPPFA makes it easier to avoid reductions in loan forgiveness based on a business’s FTE count. The PPPFA extends the deadline to rehire workers from June 30 to December 31 and the law creates new exceptions for a reduced headcount.
  4. The repayment term for new PPP loans is extended from 2 years to 5 years. Businesses that have already obtained a 2 year loan should contact their lenders if they are interested in a loan with a longer duration.

In light of these changes, dealers that have received PPP loans may want to work with their accountants and/or counsel to determine if it makes sense to switch from an 8 week to a 24 week covered period. In many cases, a 24 week covered period will result in more loan forgiveness, but other factors (such as a potential delay in receiving forgiveness) are also factors to consider. Regardless, proper documentation remains critical to supporting any loan forgiveness request.

If your dealership decided to not use PPP funds, you may be eligible for a tax credit under the new CARES Act. The CARES Act creates a new employee retention credit to encourage employers to keep employees on payroll. The IRS has a new guide on this tax credit, which is accessible by clicking here.

The following resources provide helpful information on the PPP:

*Please note that some of these resources don’t reflect the recent changes from the PPPFA. In the coming weeks CNCDA and officials will be publishing updated materials.

Accounting/Taxes

I need assistance on taxation and/or accounting issues. Where should I go?

A variety of programs have been launched by government agencies to allow businesses to delay tax obligations due to the coronavirus crisis. This allows businesses to retain cash on hand in the near term.

Vehicle Registration and DMV Related Issues

I need assistance on vehicle registration or related issues. Where should I go?

For those dealers who are continue to make limited sales, processing registration and titles remains an essential dealership function consistent with the Governor’s order. Dealers should closely monitor their registration operations to ensure they retain enough personnel to properly process transactions. DMVDesk/Vitu is also available to answer dealership questions and meet all their needs, regardless of whether or not they are DMVDesk/Vitu clients.

You can contact them 24/7 at: 818-706-1949 or help@dmvdesk.com.  

How should salespersons renew their licenses during this crisis?

During this crisis, DMV has confirmed with CNCDA that salesperson renewals can be submitted via mail to the following address:

For mail deliveries:
Occupational Licensing Section
P.O. Box  MS L224
Sacramento, CA  94232-3420

For courier deliveries only (No Public Access)
Occupational Licensing Section
8243 Demetre Ave
Sacramento, CA  95828

Franchise Issues

What actions are manufacturers taking in response to the coronavirus?

Manufacturers have announced several initiatives, including changes to dealership performance standards, relief on their floorplan programs, and new incentive programs. Contact your manufacturer representative to learn what programs may be applicable to your dealership.

I’m considering closing my store for the duration of this crisis. Will I breach of my franchise agreement?

There isn’t a universal answer to this question. If you are considering closing your store, contact your manufacturer representative. Some manufacturers have announced that they are excusing their dealers from requirements to stay open due to the coronavirus crisis. Other manufacturers may be less accommodating. In the event your manufacturer resists a request for temporary closure, you may want to consider whether you could invoke a “force majeure” or similar clause in your franchise agreement, which could excuse performance in extraordinary circumstances. Please consult a competent franchise law attorney in the event you are considering escalating such a matter with your manufacturer.

Can a manufacturer force me to accept delivery of a vehicle?

Not unless you voluntarily ordered the vehicle. California franchise law prohibits manufacturers from coercing dealers into accepting deliveries of vehicles that they did not voluntarily order. Vehicle Code section 11713.2(a) makes it unlawful for a manufacturer to “coerce or attempt to coerce any dealer in the state […] To order or accept delivery of any motor vehicle […] which shall not have been voluntarily ordered by the dealer.” (You can access this statute by clicking here.)

A manufacturer is trying to amend my franchise agreement. What should I do?

CNCDA strongly cautions its dealers to closely review any proposed franchise modification. California franchise law requires manufacturers to follow a formal notice process prior to imposing a franchise modification that would “substantially affect the franchisee’s sales or service obligations or investment.” (Vehicle Code section 3060(b).) Moreover, California law provides dealers with rights to resist modifications.

If you believe your manufacturer may be imposing an unlawful franchise modification, contact competent counsel and/or CNCDA at 916-441-2599.

CNCDA Assistance

What is CNCDA doing to help dealers during this crisis?

CNCDA began remote operations on Tuesday, March 17, 2020. Since this time, CNCDA staff has been in continuous contact with local and state officials on issues involving coronavirus and your business. Our legal hotline (916-441-2599) continues to operate and staff is fully accessible by phone or email. And we are continuously developing compliance resources (such as this website and daily alerts) to help our members during this difficult time.

I’d like to access your webinar recordings. Where should I go?

Click here to access the Coronavirus Laws and Your Dealership webinar recordings.

Is your dealership contributing to your local community during this time of difficulty? Let us know!

If you or other dealerships are involved in positive community efforts during this global pandemic, please share with CNCDA so we can continue to pass along acts of kindness taking place throughout our great state in this time of crisis. Send stories to Jenny Dudikoff, Director of Public Affairs and Marketing at jdudikoff@cncda.org.

CNCDA is working to continuously provide our members with the most up to date information on the coronavirus as it pertains to dealerships.

Visit our Dealership Coronavirus Resources webpage for more information.

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