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Capitol Connection Latest Legislative Updates from the Hill and Around the Country


hile the political focus is on the Presidential campaigns and the U.S. Congress has adjourned for a seven-week break, Agencies and Departments continue to craft rules and regulations – three of interest to ARA members are updated here.

U.S. Labor Department’s Overtime Regulations – Impact on Commission Sales Personnel and Technicians

he new U.S. Department of Labor (DOL) overtime regulations will be going into effect on December 1, 2016. The law will increase the salary level required for exemption from overtime from the existing $455 per week ($23,660 per year) to $913 per week ($47,476 per year). Commissioned sales employees and certain technicians may still be exempt under the new rule, however all businesses are encouraged to consult with employment attorneys in their state. The “white collar” exemption includes some technicians, service advisors and commissioned sales employees but records will still need to be kept and cal- culations may be complicated. Manage- ment trainees will not be exempt and nei- ther will many administrative personnel. In a related matter, the Supreme Court recently ruled that auto dealers’ service advisers were exempt from overtime eli- gibility. That decision was in response to a long-standing legal debate specific to auto dealership employees.

ARA encourages all members to allow ample time for reviewing your exempt classification system and consultation with an attorney familiar with the Fair Labor Standards Act (FLSA).

ARA Comments to Justice Department on Volkswagen Partial Consent Decree

n an August 5, 2016 comment letter to the U.S. Department of Justice regard- ing the Partial Consent Decree for Volkswagen diesel vehicles, ARA urged the Department to adopt language that allows the owners of VW engines, not just

I 62 Automotive Recycling | September-October 2016

Significant Updates on OSHA's New Injury and Illness Reporting Rule

he National Association of Manufacturers (NAM), of which ARA is a mem- ber, filed a lawsuit recently to block the new Department of Labor’s Occupational Safety and Health Administration’s (OSHA) rule requiring elec- tronic filing of injury and illness reports. OSHA finalized and published its long anticipated new rule entitled “Improve Tracking of Workplace Injuries and Illnesses.” The rule will require the electronic submission of injury and ill- ness reports which will be made publicly accessible. In addition, the rule contains anti- retaliation provisions that must be communi- cated to employees.

T On the day

The DOL released its final rule mandating changes for years with the first to start on January 1, 2020.

In a press release NAM stated that, “Not only does OSHA lack statutory authority to enforce this rule, but the agency has also failed to recognize the infeasibility, costs and real-world impacts of what it preposterously

following filing of the NAM lawsuit, OSHA announced a delay for

enforcement of a key provision.

suggests is just a mere tweak to a major regulation.” NAM is seeking a prelim- inary injunction to prohibit OSHA from implementation of the rule. On the day following filing of the NAM lawsuit, OSHA announced a delay for enforcement of a key provision. Employees of all size firms will have to be informed that they not only have the right to report a work-related injury but they also cannot be retaliated against for making such a report. This require- ment was delayed until November 1, 2016 rather than the original August 10, 2016 deadline. OSHA staff said that they will produce educational materials and enforcement guidance for this provision.

the entire vehicle, to be “Eligible Owners” eligible for remedy under the recall pro- gram.

Each day over 500,000 recyclers OEM parts that were designed and built to meet the automakers’ original require- ments for fit, finish, durability and safety are sold by professional automotive recy- clers to consumers, repair facilities, and automobile dealers. ARA’s letter pointed out that the value of these recycled OEM components was recognized in June

when a settlement was reached between the United States, the State of California, and Volkswagen that stated all eligible vehicles “may be, to the extent possible, recycled to the extent permitted by law.” ARA believes that the Partial Consent Decree is significantly deficient in pro- viding equitable remedy for “engine owners” such as the professional auto- motive recyclers throughout United States that have thousands of these engines in their inventories. 

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