What is the
Real Cost of your Dealership’s Drivers? GCADA’s Car
Couriers’ Program Can Help!
OSHA
cites driving as the most hazardous exposure in the workplace.
Therefore, an important question for a Dealership to ask is: Who do we
have driving our cars for dealer trades, service appointments or to and
from the auction? If you are like most dealerships you have a
conglomerate of porters, retired people, and friends of friends employed
by you or treated as independent contractors by you. Both options
have their own set of issues that ultimately may lead to risks
for your dealership.
The
Greater Cleveland Automobile Dealers’ Association believes that Car
Couriers has come up with a great program to reduce and even
eliminate dealership liabilities and risks when using
“Drivers” for your dealership. Car Couriers is in the
business of providing qualified compliant drivers for all of your driving
needs.
Why
is this more critical to your dealership now than in the past? The
answer is two-fold. First, as previously mentioned, when your
drivers are out on the road there are risks and liabilities
involved. While drivers share the same manual classification as
your service technicians, their wages, relative to technician’s, is
minimal. However, this minimal percentage of drivers’ wages – if
there is an injury - can cause a large impact on your workers’
compensation premiums for your entire dealership. Having your
drivers staffed by Car Couriers eliminates the chance for a driver
claim to impact your workers’ compensation premiums because they will no
longer be on your payroll.
A
second critical liability for Dealerships to be aware of is if your
drivers are classified as independent contractors, this is more than
likely incorrect. As a result, your dealership is at risk for Wage
& Hour violations by the Department of Labor. This issue has
taken on increased scrutiny with the introduction of the “Employer
Misclassification Protection Act” which has been introduced to both
houses of Congress and provides for significant penalties and sanctions
for misclassifying an employee as an independent contractor. By
using Car Couriers, you can ensure that the drivers you utilize are
properly classified as employees.
Essentially,
Car Couriers allows you to manage or shift risk and liabilities away
from your dealership! Car Couriers will provide your dealership
with drivers that are dependable, drug free, with good driving records
and professional. Where do they get these drivers? Car
Couriers gets them from your current pool of drivers. They hire
the staff that you are currently using which allows you to keep the same
familiar faces that your customers have grown to know and like. The
professional and courteous staff continues to be directed by your
management team to handle the daily service calls as well as provide additional
drivers for those busy times, allowing you to be more efficient.
The transition to Car Couriers is seamless. Car Couriers strives to
safely deliver the needed inventory to keep your dealership sales rolling
and your service bays full.
Metro
Lexus and Lexus of Akron have been using Car Couriers for several months
now and Dan Pyle says, “We are happy with Car Couriers. The
decision to place our 28 combined valets in Car Couriers was made very
easily after we discovered the valets, who represent less than 2%
of our payroll, made up 60% of our workers comp claims and
premiums. Car Couriers essentially pays for itself if we avoid one
claim per year!”
What
does this cost? GCADA has arranged for exclusive pricing for its
members starting as low as $12.50/hr. Car Couriers then pays the
drivers wages, workers’ compensation premiums, unemployment insurance,
medicare, all payroll taxes as well as insurance on the driver. For
a nominal additional cost, Car Couriers can provide insurance coverage on
your vehicles as well. This option provides for coverage of any
damage to your vehicle as well as any third-party claims that may
arise.
If you would like more information, please contact Ben Herdon.
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