CATA News

In October, the Steve Napleton Group is spearheading an effort to raise significant funds in the fight against pediatric brain cancer, which claims the lives of more American children than any other disease. The cause for them is personal - in 2022, Steve Napleton lost his 3-year-old daughter Violet to an extremely aggressive brain tumor. In response, he and his wife founded the Violet Foundation for Pediatric Brain Cancer, which raises sorely needed funds for research and also supports families who have lost a parent's income while their child is fighting for their life.

Each October, Violet's birth month, they have fundraised at their dealerships. In 2022 they gathered the support of 60 dealerships, and last year that number grew to 120. This year, under a campaign named Driven for Kids, they are seeking to bring in even more dealers from around the country for this worthy cause.

Obviously, some things go beyond business. To find out more about how your dealerships can join, please visit https://www.violet-foundation.org/dealerships-united.  The hope is that, with our collective action, we can raise significant money where it’s sorely needed. The Violet Foundation is completely volunteer run so that 100% of funds raised go towards their grants, which have already benefited over 100 families in 22 states. Your dealership’s participation will be highlighted in press releases and social media, as well as personalized graphics that you can use on your website and in-store to show your customers.

The U.S. Equal Employment Opportunity Commission (“EEOC”) has filed a trio of lawsuits alleging that discriminatory mistreatment in the workplace created illegal hostile work environments in violation of Title VII of the Civil Rights Act of 1964.

EEOC v. United Airlines, Inc.

EEOC v. Epiq Food Hall Woodbridge, LLC

EEOC v. Rivers Edge Enterprises, LLC d/b/a River’s Edge Bar and Grill

These companies’ alleged conduct violated Title VII of the Civil Rights Act, which prohibits discrimination, harassment, and retaliation against employees who complain about unlawful conduct. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its administrative conciliation process in each of the three cases.

Last fiscal year, the number of charges the EEOC received involving harassment jumped more than 28% to 31,354, the highest since the Agency started monitoring harassment charge numbers in fiscal year 2010. Charges involving retaliation reached more than 46,000, a 31-year high.

Employers need to remain vigilant in preventing discrimination, harassment, and retaliation in the workplace. Employers must act promptly in investigating allegations and must immediately take steps to stop harassment and take appropriate disciplinary and remedial actions. SESCO has a long history of assisting employers with (1) training to ensure their workplace is free of discrimination, harassment, and retaliation; and (2) defending against administrative and court actions alleging they have engaged in discrimination, harassment, and retaliation.

If any CATA Dealers have any questions or concerns, we recommend they contact us to ensure compliance.  For free assistance, contact SESCO at 423-764-4127 or by email at sesco@sescomgt.com.

Welcome, Green Payments, a new member of the CATA! Green Payments assists with merchant services and payment processing. For more information, contact Todd Combs at todd@greenpayments.io.

The Chicago Automobile Trade Association (CATA) is proud to renew its Preferred Partner relationship with Reynolds Document Services. Serving the vast majority of dealerships nationwide, Reynolds stands out as the most respected source for reliable, and affordable document services.

“The CATA is proud to continue our relationship with Reynolds Document Services,” said Jennifer Morand, CATA President. “Reynolds is the gold standard when it comes to providing the necessary documentation for dealers to transact with their customers. Like all CATA member benefit programs, dealers can be confident that Reynolds will deliver accurate and legally reviewed F&I documents at a fair price.”

Business Documents and Marketing Services

Reynolds Document Services has been helping dealerships with their document and marketing needs for nearly 100 years. Their extensive line of traditional products is unmatched in the automotive industry and is available to all dealers regardless of your DMS. Their key marketing solutions include a service reminder program focused on customer retention, direct mail, customized hang tags, and many additional products to promote your brand. Finally, they have local, dedicated Document Services Consultants who will routinely visit your dealership and strive to deliver the highest quality of products and services to you.

F&I Compliance

At CATA, one of our highest priorities is helping you manage your compliance risk by using legally reviewed F&I documents. Reynolds is the sole provider of the trusted and proven LAW® 553® Retail Installment Contract used by many of our dealers. Reynolds also offers the LAW F&I Library® for Illinois. This library consists of 37 documents, available in both pre-printed and electronic formats. Their industry leading team of in-house and outside legal resources regularly review these Illinois specific documents for legally required and best practice updates.

Managing Risk

To help with managing your compliance risk, Reynolds Document Services offers a FREE F&I Document Review. Using their experience in the automotive industry and expertise in F&I compliance, their team of compliance consultants will collect all of your F&I forms and provide an assessment of how you could reduce your risk. 

As increasing levels of litigation occur in our industry, we highly recommend that every dealer member has this document review completed to help mitigate any danger your business may face.

To take advantage of this unique opportunity, please contact your local Compliance Consultant, Brian Ray, at Brian_Ray@reyrey.com or (314) 960-0100. You can also visit LAW553.com for more information on F&I document compliance.

Have you seen the new Drive Chicago Radio Newsletter? Delivered to your inbox every Monday, our weekly newsletter serves as a quick-hitting recap of all the latest automotive news, new-vehicle reviews, and industry expert interviews covered on the Drive Chicago Radio show. Tune in to the latest episode here, and look out for next week's newsletter for a review of the new 2024 Hyundai Santa Fe.

An NADA-led letter that supports the addition of catalytic converter anti-theft legislation (H.R. 621/S. 154) to the must-pass annual defense authorization bill has been signed by 99 organizations, including the CATA, IADA and prominent law enforcement groups.

The letter will be sent next week, along with a press release by NADA to help increase the momentum for action this year.

Charities and civic organizations know that Chicagoland new-car dealers are an integral part of their communities and are often deeply involved in charitable causes. However, dealers rarely receive the recognition they deserve for their ongoing efforts. The Chicago Automobile Trade Association created Chicagoland Dealers Care in 2008 to raise awareness and build upon charitable efforts already put forth by the local dealer community. Dealer members may apply to the CATA for additional contributions to local charities they support.

Application Guidelines:

Below are the guidelines to submitting a Chicagoland Dealers Care request:

The Chicagoland Dealers Care program will not solicit contributions from CATA members. Its sole source of funding comes from the CATA.

Download the Application

Please reach out to Hayley Feichter (hfeichter@drivechicago.com)  with any questions regarding the program or to submit a Chicagoland Dealers Care request.

In July 2023, the CATA donated $1,500 to the Chicago Community Works and Sports Alternative in conjunction with a $5,000 donation by Pugi Auto Group of Downers Grove.

The Chicago Community Works and Sports Alternative was founded in 1991 as an anti-gang and anti-drug organization for students after school. One of the most well-known programs that Community Works and Sports Alternative produces is the Chicago Jokers football team, which greatly benefits from these donations by providing equipment and transportation for students on the football team. Many Jokers return to coach the team, and some even go on to have professional football careers. Most recently, Jokers alumni Jayden Reed was drafted by the Green Bay Packers in the second round of the 2023 NFL Draft.

In addition to the Chicago Jokers football program, the organization also supports students through etiquette and mentoring programs. There are currently more than 80 students participating throughout the organization.

“We are proud to provide these students a safe place to come together,” said Eric McLendon, Chicago Community Works and Sports Alternative founder and president. “Now they have the courage and resources to say ‘no’ when faced with questionable decisions.”

The CATA has been a longtime supporter of local nonprofit organizations. Since its inception in 2008, the grassroots Chicagoland Dealers Care program has donated more than $125,000 to local charitable organizations. Additionally, since 1992, the association has raised more than $60 million for Chicago-area charities during the annual First Look for Charity black-tie event, traditionally held the evening before the Chicago Auto Show opens to the public.

“The CATA’s Chicagoland Dealers Care program makes our member’s donation dollars go further and also highlights the positive impact that new-car dealers have within their communities,” said CATA Chairwoman Kelly Webb Roberts. “We applaud local dealers like Pugi Auto Group for their very generous contributions to supporting their community.”

• The U.S. Federal Trade Commission (FTC) previously approved a final rule banning most non-compete agreements between employers and employees, that was set to take effect on September 4, 2024.
• However, late in the day on August 20, Judge Ada E. Brown of the United States District Court for the Northern District of Texas, followed her July preliminary injunction against the Rule with a ruling that strikes down the Rule on a nationwide basis.
• Although the FTC’s national ban has been struck down, individual state restrictions on noncompete agreements remain in effect.

As another presidential election quickly approaches, the intensity of political discourse will inevitably increase in the workplace, posing unique challenges for employers seeking to maintain a respectful and productive work environment. To help employers navigate this dynamic period, here are some important legal considerations and best practices to address political discussions in your organization. Be mindful that state law may offer employees additional protections.

Question: What rights do private employers have?

Answer: While the US Constitution protects the right to free speech, including political speech, this protection generally applies only to public employers. In the workplace, private employers enjoy more leeway to regulate employee speech and conduct. Policy should prohibit discussion of or the internal circulation of political content not relevant to work.

Question: Does the National Labor Relations Act (NLRA) apply?

Answer: One notable federal law that may govern political speech in private workplaces is the National Labor Relations Act (NLRA). While commonly associated with union-based activities, the NLRA can protect a private employee’s rights. Often times, this can involve topics and issues that are political in nature. An example may include if a group of employees is unhappy with their pay and discuss how a particular political candidate’s platform may include a push for higher wages or better benefits. Such discussions would likely be a concerted activity under the NLRA, thus prohibiting an employer from taking action against those participating. Another popular example may be if a private employer typically receives government funding. Any discussions or action taken by a group of employees to support a candidate who publicly supports government subsidization of the industry under which the employer falls are likely also given protection.

Question: Does the NLRA protect social media activity?

Answer: In the current world, social media is an extension of an individual. Social media platforms are used daily to connect with friends, share news, and ultimately, share opinions. So, when an employee leaves work, goes home, and posts political opinions online, is this speech protected? Not always. If a political opinion shared by an employee harasses or deeply offends a coworker or otherwise causes a rift in workplace harmony, an employer may be able to take action against the author of the post. Employers should establish a social media policy that encourages employees to feel confident they can share opinions through social media while also keeping them informed of lines they cannot cross, both at home and in the office.

Many of the issues surrounding politics in the workplace are situation-specific and we welcome the opportunity to provide recommendations. We have prepared a White Paper with more detailed information; retainer clients may request a copy by contacting us as noted below.