2025 Legal and Regulatory Updates for Auto Dealerships and HR Departments

As we step into 2025, staying informed about new and evolving regulations is essential for businesses, particularly in the auto dealership and human resources sectors. This combined newsletter highlights critical laws and compliance requirements for auto dealerships and HR, ensuring you’re well-prepared for the challenges and opportunities ahead.

 

1. What are the FTC Safeguards Rule updates and how do they impact my dealership?

The FTC has enhanced data security requirements for consumer information. Key requirements include annual risk assessments, data encryption, and appointing a Qualified Individual to oversee your information security program. You must conduct a gap analysis of your IT systems, train staff on new security protocols, and implement your updated Safeguards compliance program by January 10, 2025.

2. What changes are happening to IRS Form 1099-K reporting?

The IRS has lowered the reporting threshold for Form 1099-K to $600 for transactions processed through third-party payment platforms like PayPal or Venmo. This means you must report even smaller payments received through these platforms starting January 1, 2025. Update your accounting systems to track these transactions and train staff on the new requirements.

3. How do the EPA EV Tax Credit Regulations impact my dealership?

The EPA has revised eligibility criteria for EV tax credits with stricter domestic sourcing guidelines for batteries and manufacturing. You must provide detailed documentation to customers about eligible models. Educate your sales teams on these changes and update marketing materials and financing options by January 1, 2025.

4. What does California's Advanced Clean Cars II mandate mean for my dealership?

California requires that 35% of all new vehicle sales be zero-emission vehicles (ZEVs) by January 1, 2025. You need to expand your ZEV inventory, install charging infrastructure, and train your sales and service teams on ZEV-specific protocols.

HR Departments

5. What are the key requirements of the Pregnant Workers Fairness Act (PWFA)?

The PWFA requires employers with 15 or more employees to provide reasonable accommodations for pregnant workers and those with related conditions. You must assess and document accommodations, update policies for compliance, train managers, and engage in an interactive process with affected employees. This law goes into effect January 1, 2025.

6. How will the Fair Labor Standards Act (FLSA) Overtime Rule changes affect my employees?

The salary threshold for exempt employees increases to $55,000 annually starting January 1, 2025. You may need to adjust salaries or reclassify some employees to non-exempt status. Update your payroll systems accordingly and provide training on time-tracking for affected employees.

7. What are some important state-specific HR law changes I should be aware of?

California: Requires pay ranges in job postings for employers with 100 or more employees and mandates five days of unpaid bereavement leave for all employees.

New York: Expands wage theft prevention measures requiring detailed pay stubs and wage notices and mandates reimbursement for remote employee work-related expenses.

These laws take effect January 1, 2025.

8. What are some best practices for staying compliant with all these new regulations?

• Regularly review and update HR policies, engaging legal counsel for compliance.
• Clearly communicate policy changes to employees and provide resources for questions.
• Leverage HR management software to track compliance deadlines and requirements.
• Conduct regular audits, such as salary audits to ensure compliance with the FLSA.
• Provide comprehensive training for managers and supervisors on topics like the PWFA and wage theft prevention.
• Update job postings and employee handbooks to reflect all new regulations.
• Audit remote work policies to ensure tax compliance and proper expense reimbursement.

 

Disclaimer AutomotoHR and its partners /affiliates collectively as (AutomotoHR) have made reasonable efforts to ensure the Accuracy of the subject matter presented. AutomotoHR makes no express or implied warranty with respect to the information presented and assumes no responsibility for errors or omissions. This resource is designed to address compliance with Federal laws, additional state laws and/or regulations may also apply. This resource should not be used as a substitute for professional or legal advice. If legal advice or other expert assistance is required, the service of a legal Professional should be sought.