ComplianceCast October 2009

October 2009 —

As Cash for Clunkers has now come and gone, dealers are once again seeking ways to reduce costs and increase earnings. Be sure to avoid any shortcuts or policy changes that look too good to be true or call your compliance with regulations into question. And with the Red Flags Rule deadline of November 1st, now is the time to set the tone for a future with integrity and profitability.

	New Immigration Enforcement Effort is on the Way The Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) have increased audits and surprise on-site inspections in an effort to crack down on the hiring of unauthorized workers. Are your I-9 forms in order? And with their recent announcement of their intention to rescind the Social Security No-Match Rule, DHS shows that the government is serious about getting tough on employers who hire unauthorized workers. Learn how to prepare your company and employees for various DHS and ICE actions before they show up on your doorstep. Labor Letter by Fisher & Phillips LLP

	Auto Dealer Paying Employees Lost Wages AutoNation Inc. learned the hard way that if you’re going to make changes to your employment policies, first ensure they are compliant with all applicable laws and regulations. It could cost much more than the savings you’re after. Back in 2005, AutoNation Inc. changed the vacation policy for its Washington state employees, telling them that the change would cost them no money. The actual result was the loss of at least one week of earned vacation. Four years and a long legal battle later, the nation’s largest vehicle dealer is paying legal fees and lost wages totaling $2.6 million to 500 workers. The Spokesman-Review

	New Red Flags Rule Worries Dealers After three deadline extensions, the Federal Trade Commission’s (FTC) Red Flags Rule is slated to take effect November 1st. The rules, which require creditors to develop, implement and administer ID-theft prevention programs in an effort to combat identity theft, seem vague, and many dealers remain unsure of the exact requirements necessary to comply. More concerning, the government will assess a penalty of $3,500 (up from $2,500 two years ago) for each failure to comply with the regulations. Attorney Manas Mohapatra explains the FTC’s expectations, and what you can expect from the FTC. Wards Dealer Business

Red Flags Enforcement Begins November 1st – Are You Ready?

Compli’s Red Flags Identity Theft Protection Program provides businesses with the ability to draft, rollout, train, monitor and report on their unique Red Flags Program. With the upcoming deadline, it is crucial that your business have a program in place as soon as possible.

View our series of complimentary Webinars to gain a crystal-clear understanding of the Red Flags Rule and what you need to do to be in compliance:

Red Flags Webinar Q&A with Michael Benoit, Hudson Cook LLP

Red Flags Webinar Workshop 1: How to Get Started - Red Flags Overview and Introduction

Red Flags Webinar Workshop 2: How to Assess Your Current Environment & Build Your Tailored Red Flags Program

Red Flags Webinar Workshop 3: How to Implement and Monitor Your Tailored Red Flags Program

Red Flags Webinar Workshop 4: How to Report On and Update Your Program as Required by Law

For additional Red Flags related information, please visit: http://www.compli.com/red-flags/.

If you have questions about any step in the process, or have an interest in Compli's Red Flags Identify Theft Protection Program call us at: 1-866-294-5545.

Webinar: Reducing Risk of Lawsuits from Terminations and RIFS

Date: Wednesday, November 4, 2009
Time: 9:00 AM - 10:00 AM PST

As dealerships continue to weather the economic storm, the risk of lawsuits brought upon by the number of terminated, disgruntled employees has increased. Join Steve Roppolo of Fisher & Phillips LLP, for an engaging presentation designed to help you limit your exposure to these potentially costly claims.

In this webinar we will discuss:

• How to Handle a Reduction in Force

• Avoiding Discrimination and Retaliation Claims

• Ensuring Consistency When Imposing Discipline

• The Essential Weapon -- Good Documentation

• The Benefits of Supervisor Training

• How to Implement an Effective Compliance Program to Help Ensure Best Practices and Preclude Costly Errors

There will be a Q&A session at the end of the Webinar.

Space is limited. Reserve your Webinar seat now at: https://www1.gotomeeting.com/register/182659672.

Upcoming Seminars & Events:

October 18th – 20th, 2009:
Oregon Auto Dealers Association (OADA) Convention in Sunriver, OR. Compli will be sponsoring and attending – please join us!

October 22nd – 23rd, 2009:
The American Institute of Certified Public Accountants (AICPA) National Auto Dealership Conference in New Orleans, LA. Compli will be attending – please join us!

October 22nd – 23rd, 2009:
Lane Gorman Trubitt, LLP Controllers Roundtable in Fort Worth, TX. Robert Miller of Compli to present: “Identifying Top Compliance Risks and Maintaining Accountability.” Roundtable will include speakers from Fisher & Phillips, Lane Gorman Trubitt and more. Compli will also be sponsoring the thursday Cocktail Hour. CPE Credit Available.

For more information, contact Jonica Smith at jonica@compli.com.

Partner Spotlight:

AAS Launches Multistate Audit Program
Compli partner, Auto Advisory Services (AAS), has announced that it has launched a new Multistate Audit Program, extending their auto dealership compliance audit services into New York and New Jersey.

With decades of experience in assisting the automotive industry, AAS consultants will come to your dealership to conduct a complete review of dealership compliance performance in a broad array of regulated areas. If concerns are discovered, AAS explains the nature of the problem and suggests improved controls and procedures to prevent a reoccurrence.

Dealers may select any of four Multistate Audit Modules to create a customized one-day compliance audit, or opt for the more comprehensive two-day audit, which includes all eight modules. The full module menu includes:

• Advertising Review
• Contract Completion
• Forms Usage and Miscellaneous Disclosures
• Sales/Finance Practices
• Federal Vehicle Labeling
• Fair Credit Reporting Act (Credit Reports, Credit Applications, and Identity Theft Prevention)
• Equal Credit Opportunity Act (Credit Discrimination)
• Gramm Leach Bliley Act (Privacy Information Security)

To learn more, visit: http://www.autoadvisory.com/.

ComplianceCast October 2009 | Compli.com