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Dealership Coronavirus FAQs


Operations

How do the state and local orders impact dealership operations?

The following is an outline of the status of in-person vehicle sales in California as of January 26, 2021:

Vehicle Sales in California, Generally. Yesterday, the California Department of Public Health ended the Regional Stay Home Order across California. However, virtually all California dealerships remain in counties within the restrictive “purple” tier.

How does this impact occupancy? The lifting of the Regional Stay Home Order raises the occupancy limit for most retailers (including dealerships) from 20% to 25%. A notable exception appears to be Santa Clara County, which appears to continue to impose a 20% occupancy limit. (see below)

What about the sale of food or drinks? Prohibitions on the sale of food and drinks for in-store consumption have also been lifted. However, dealerships that offer food or drinks to customers should take care to reduce the transmission of COVID-19 by being mindful of how food and drinks are offered to customers. For example, frequently touched surfaces (such as vending machine keypads) should be regularly cleaned. Also, dealerships that offer drinks should consider using cup dispensers instead of placing cups on tables.

What about the sale of food or drinks? Prohibitions on the sale of food and drinks for in-store consumption have also been lifted. However, dealerships that offer food or drinks to customers should take care to reduce the transmission of COVID-19 by being mindful of how food and drinks are offered to customers. For example, frequently touched surfaces (such as vending machine keypads) should be regularly cleaned. Also, dealerships that offer drinks should consider using cup dispensers instead of placing cups on tables.

What about employee breakrooms? Dealerships in Santa Clara County are still required to close their employee breakroom. Dealerships outside of Santa Cara County should take care to reconfigure and/or stagger employee lunches to ensure that social distancing is practiced.

After incorporating this new information, the following represents our best understanding of the current status of vehicle sales operations in California:

  • Purple Tier Counties (Virtually all California dealerships)
    • Key Limitations: 25% indoor occupancy limit. (This includes dealership sales and parts departments. It’s unclear if this includes service departments, but dealers should use their best efforts to reduce occupancy in all areas.)
    • Applicable Jurisdictions: Click here for your county’s status.
  • Counties Not in the Purple Tier
    • Key Limitations: 50% indoor occupancy limit.
    • Applicable Jurisdictions: Click here for your county’s status.
  • Notable Local Restrictions
    • Los Angeles County, except the cities of Pasadena and Long Beach. Must adopt and implement local social distancing protocols. Click here to access.
    • Santa Clara County. 20% occupancy limit still applies; employee breakrooms should be closed. Click here to read more.

The state has clarified that capacity restrictions are based on fire department occupancy limits and the fire code. “In most cases the capacity limit does NOT include staff under the fire code; individual premises will know from their own individualized fire department occupancy limits whether staff are included.” (Click here.) As such, dealers should generally be able to exclude staff from calculating occupancy/capacity limits at their store. If you have questions on this, consider contacting your local fire department.

Regardless of what occupancy limit applies in your county, it’s a good idea to use your best efforts to limit the number of persons inside your dealership. In the event a health inspector visits your dealership, they will want to know that you are taking these restrictions seriously and are taking necessary precautions to mitigate risk. These occupancy restrictions should be implemented in conjunction with other safety precautions, such as social distancing, daily employee symptom checks, face coverings, and the reporting of “outbreaks” to local health departments.

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.)

Online Sales and Remote Deliveries. Dealers interested in online sales should review the DMV memorandum on online sales, which you can access here.

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

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

Local Jurisdictions Adopt Travel Quarantine Requirements. California recommends that people quarantine for 14 days following non-essential interstate travel. (Click here.) However, several local jurisdictions are now requiring residents to quarantine following non-essential travel. On December 28, the Los Angeles Public Health Department imposed a requirement that residents quarantine for 10 days following travel outside of LA County. (Click here) Santa Clara County has also imposed a requirement that residents quarantine for 10 days following non-essential travel more than 150 miles outside the County’s borders. (Click here.) These orders should not be read to apply to dealership employees that commute to work from outside LA or Santa Clara counties, as such commutes are considered “essential” travel.

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.

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.

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.

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.

Health Requirements

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

Cal/OSHA Implements Emergency Rules on COVID-19; Imposes New Employee Testing and Other Requirements; Takes Immediate Effect. On November 30, California approved emergency temporary Cal/OSHA standards related to COVID-19. Many of the standards are very similar to existing federal, state, and local requirements related to COVID-19. However, the standards include significant new rules that California businesses (including dealerships) must observe.

The new Standards impose two important new obligations on employers:

First, the Standards now require employers to provide COVID-19 tests free of charge to employees in certain circumstances:

  • COVID tests must be provided to employees that have potential work-related exposure to an individual who tested positive for COVID-19.
  • Employers must immediately provide testing for all workers in an Exposed Workplace affected by an “outbreak” of COVID-19 cases (defined as three or more cases within a 14-day period), as well as follow up tests at least once every week until the outbreak abates (14 days without any further cases).
  • In the event of a “major outbreak” of cases (defined as twenty or more cases within a 30-day period), testing must be provided to all in the workplace immediately and at least twice weekly until the outbreak abates.

Under the Standards, these tests must be provided free of charge to all affected employees, and they must be provided during the workday. Time spent testing also counts as “hours worked” and must be compensated.

Second, the Standards require employers to ensure that many employees affected by exclusion requirements (including both isolation periods for employees with COVID-19 and quarantine periods for employees exposed to a COVID-19 case) continue to be receive compensation and benefits during such periods of exclusion. Employers are permitted to require the use of available employer-provided Paid Sick Leave (such as Paid Sick Leave rules under the Labor Code), as well as “consider benefit payments from public sources in determining how to maintain earnings, rights and benefits” for affected employees, although there is little guidance available as to how this will work in practice. This compensation continuation requirement is intended to apply to work-related exposures, however: Employers who can demonstrate that the exclusion requirements were triggered by an exposure that was not work-related (e.g., family or other non-work gatherings or travel) are not required to continue earnings.

On a more positive note, the new Standards provide guidance on what constitutes an “exposed workplace” for the purposes of determining whether an “outbreak” occurs and additional testing is required: “An exposed workplace is a work location, working area, or common area used or accessed by a COVID-19 case during the high-risk period, including bathrooms, walkways, hallways, aisles, break or eating areas, and waiting areas.” The Standards specifically note that “buildings or facilities not entered by a COVID-19 case” are not part of the exposed workplace. In addition, the Division has explained in a posted FAQ set (Click here.), that it “does not expect employers to treat areas where masked workers momentarily pass through the same space without interacting or congregating as an “exposed workplace,” so they may focus on locations where transmission is more likely.”

Other elements of the emergency Cal/OSHA standards include expanded employer obligations to develop a written COVID-19 prevention program, employee education requirements on COVID-19, and expanded paid sick leave. You can learn more about these requirements by accessing Cal/OSHA’s FAQ on this topic (click here.)

Finally, it’s worth noting that not all elements of the Cal/OSHA standard should be prioritized equally. Cal/OSHA states that its “enforcement personnel will consider an employer’s good faith efforts in working towards compliance, but some aspects, such as eliminating hazards and implementing testing requirements during an outbreak, are essential.” In other words, dealerships should focus on eliminating hazards (e.g., reconfigure workspaces to ensure distancing, make sure employees are wearing face coverings), and dealers should implement a COVID-19 testing strategy.

CNCDA will discuss these new Cal/OSHA standards in detail during our webinar, Coronavirus Laws and Your Dealership: Part VI.

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.

What are the New Quarantine Requirements?

Updated December 23, 2020

Last week, the California Department of Public Health (CDPH) adopted revised quarantine guidance that allows asymptomatic close contacts (within 6 feet of an infected person for a cumulative total of 15 minutes or more over a 24-hour period) to discontinue quarantine after Day 10 from the date of last exposure with or without testing. (Click here) This reduces the quarantine period from 14 to 10 days.

All exposed asymptomatic contacts permitted to reduce the quarantine period to less than 14 days must:
• Adhere strictly to all recommended non-pharmaceutical interventions, including wearing face coverings at all times, maintaining a distance of at least 6 feet from others and the interventions required below, through Day 14.
• Use surgical face masks at all times during work for those returning after Day 7 and continue to use face coverings when outside the home through Day 14 after last exposure.
• Self-monitor for COVID-19 symptoms through Day 14 and if symptoms occur, immediately self-isolate and contact their local public health department or healthcare provider and seek testing.

Also, dealers considering allowing employees to return after 10 days instead of 14 days should note that Cal/OSHA has not updated its regulations on COVID-19 exposure, which require a 14 day quarantine period. (Click here.) Therefore, dealers that wish to continue requiring a 14 day quarantine period still have a basis to do so.

Who should I notify when there is workplace exposure to COVID-19?

The rules involving employer notification requirements related to workplace exposure of COVID-19 continue to multiply. To assist your dealership in complying with these requirements, we’ve prepared the following outline:

  • All employees who may have had COVID-19 exposure and their authorized representatives (e.g., union representatives). (Click here.)
    • When is notification required? When employees may have been exposed to COVID-19. Exposure may have occurred for employees that shared a work area/common area with the infected individual within 2 days of the infected individual testing positive or developed symptoms.
    • Deadline to notify? 1 business day.
  • Independent contractors and other employers present during the high-risk exposure period. (Click here.)
    • When is notification required? Whenever there is COVID-19 exposure at your dealership.
    • Deadline to notify? 1 business day.
  • Local Health Department (Click here and here.)
    • When is notification required? When an “outbreak” occurs (i.e., 3 or more employees contract COVID-19 within a 14 day period)
    • Deadline to notify? 48 hours.
  • Cal/OSHA (Click here)
    • When is notification required? When there is workplace transmission of COVID-19. Immediate notification required for serious injury/death.
    • How long to notify? 8 hours (if serious injury/death), recorded on Log 300 (for all COVID-19 illnesses).
  • Workers’ Compensation Claims Administrator (See SB 1159; Click here.)
    • When is notification required? Employee tests positive.
    • Deadline to notify? 3 business days.  
  • Local Agency Reporting (Santa Clara County) (Click here.)
    • When is notification required? If your dealership operates in Santa Clara County and there is a positive case of COVID-19 at your dealership.
    • Deadline to notify: 4 hours.
  • When reporting this information, you must take care to maintain the confidentiality of the infected employee. You can read more about COVID-19 notification requirements by clicking here.

New Exposure Notification Notice Available on CNCDA Comply

Updated December 23, 2020

As we’ve discussed in prior alerts, California requires employers to provide notices to employees and contractors that may have been exposed to COVID-19. Exposure may have occurred for employees that shared a work area/common area with an infected individual within 2 days of the infected individual testing positive or developing symptoms.

Fine, Boggs, and Perkins LLP developed a sample exposure notification form that can be used by California dealers. CNCDA members can download the form by clicking here.

Must employees and customers wear face coverings?

As of December 7, 2020, it is now required that everyone in California must wear a mask or face covering when outside of their home, with limited exceptions. Dealers throughout California are encouraged to promptly review this guidance, which can be accessed by clicking here.

Employees

What Paid Leave Obligations Will California Dealers Have After the FFCRA Expires?

Updated December 23, 2020

Although there will not be a federal requirement for employers to provide paid sick leave beginning January 1, Cal/OSHA’s emergency regulations on COVID-19 (adopted on November 30) require most California employers (including dealerships) to provide paid leave to employees that cannot work due to a COVID-19 quarantine. However, this paid leave obligation “does not apply where the employer demonstrates that the COVID-19 exposure is not work related.” (Click here to access the regulations.)

Therefore, if an employee is quarantining due to COVID-19 exposure outside of work, an employer would not have an obligation to pay an employee while the employee is in quarantine. However, if an employee is quarantining due to work related exposure or if it is unclear where an employee contracted COVID-19, and the employee cannot work due to the quarantine, an employer would be required to pay an employee while quarantining.

Dealers should also note that the state of the law on this issue is in flux. There is substantial uncertainty as to whether Cal/OSHA has the legal authority to impose paid leave obligations on employers, and its authority is being actively challenged in the courts. Moreover, it’s very possible that the legislature (or Congress) will address this issue by passing new laws in early 2021. Finally, it is also unclear whether the extension of the tax credit in the FFCRA will extend the operation of AB 1867, which requires California employers with 500 or more employees to provide paid COVID sick leave akin to the FFCRA.
Bottom line: although the FFCRA paid leave mandate will expire on December 31, California dealers with fewer than 500 employees should still provide paid leave to employees quarantining due to COVID-19 exposure, unless they can demonstrate that the exposure was not workplace related. Dealers may still be entitled to the FFCRA tax credit until March 31, 2021.

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

Why Should I Consult My Tax Professional Before Claiming the Employee Retention Credit?

Updated February 12, 2021

The most recent federal COVID stimulus bill (also known as the Taxpayer Certainty and Disaster Tax Relief Act of 2020) made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021.

Another significant change provides that retroactive to March 27, 2020, employers who received Paycheck Protection Program (PPP) loans may now potentially claim the ERC for qualified wages that are not treated as payroll costs in obtaining forgiveness of the PPP loan. As a result, many businesses (including dealerships) that received PPP loans are evaluating whether they may now qualify for the ERC.

Two tests determine whether a business is eligible for the ERC. The first test requires a business to show a 50% decline in gross receipts during a calendar quarter in 2020 (or a 20% decline in 2021) when compared to 2019. The second test evaluates whether there has been a full or partial suspension of business operations due to a state or local COVID-19 health order.

Several dealers have contacted CNCDA about whether the recent state and local orders restricting occupancy at dealerships could constitute a “partial suspension” of business operations, which would potentially qualify the dealership to claim the ERC. Although the IRS continues to update its FAQ on this topic, it appears unlikely that an occupancy limitation alone qualifies a business to claim the ERC. You can access the IRS’s FAQ on this topic by clicking here.

If your dealership is considering claiming the ERC, please consult an experienced tax professional. CNCDA members should also note that this topic will be discussed in detail in our upcoming webinar with DHG on March 3. You can register for this webinar here.

What Are the Details of the New Stimulus Package?

Updated December 23, 2020

On December 22, Congress passed a $900 billion pandemic relief bill. The bill includes various important elements, including the expansion of unemployment benefits and the creation of a new round of Paycheck Protection Program (PPP) loans. The President still needs to sign the legislation for it to take effect.

On December 23, NADA released a detailed summary of the key elements of interest to dealers in the new stimulus bill. You can access this resource by clicking here.

Dealers should note that the pandemic relief bill does not extend employer paid leave obligations in the Families First Coronavirus Response Act (FFCRA), which expires on December 31, 2020. This means that beginning January 1, federal law will no longer require employers with fewer than 500 employees to provide paid leave to employees quarantining due to COVID-19 exposure. However, employers that continue to provide paid leave may still claim FFCRA tax credits until March 31, 2021.

A Note About Completing Your PPP Loan Forgiveness Application.

Over the past few weeks, we’ve received several inquiries from dealerships throughout California on when dealerships had “been ordered to shut down by a state or local authority due to COVID-19.” This question is important for dealers that are completing their PPP loan forgiveness application.

As described in several prior alerts, in-store dealership vehicle sales operations were arguably shutdown throughout California from March 19, 2020 through April 17, 2020. California’s statewide order issued on March 19, 2020 directed everyone to stay at home that was not needed to maintain “continuity of operations of the federal critical infrastructure sectors” as outlined in the federal Cybersecurity & Infrastructure Security Agency (CISA) documentation. (click here) “Auto sales” was not included in the CISA guidance until version 3.0 of the guidance was issued on April 17. As such, dealerships statewide were likely subject to a partial shutdown order from March 19 through April 17. Moreover, various local jurisdictions adopted more restrictive orders, including Los Angeles County, various Bay Area counties, and Fresno County.

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.

Webinar Recording: Coronavirus Laws and Your Dealership: Live Q&A

If you missed last week’s CNCDA free webinar, Coronavirus Laws and Your Dealership: Live Q&A you can access the recording by clicking here. This webinar provided a brief update on recently adopted restrictions impacting your dealership followed by a live Q&A session.

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.

Coronavirus Documents

Updated December 30, 2020


Updated on December 30, 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.


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 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.

Coronavirus Webinars

Coronavirus Laws and Your Dealership: Live Q&A

January 22, 2021

Coronavirus Laws and Your Dealership: Part VI

December 15, 2020

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

COVID-19 Member Toolkit

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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