Bill > H4019

This bill modifies existing law regarding how automobile dealers can establish and claim fair compensation for warranty service labor. Specifically, the bill provides two methods for dealers to calculate their labor rate for warranty work: first, by using reasonable labor time allowances from a retail labor time guide typically used for non-warranty repair orders, or second, by submitting a detailed analysis of 100 sequential or 60 consecutive non-warranty repair orders to demonstrate their average labor rate. The bill stipulates that the proposed labor rate will take effect 30 days after declaration, subject to potential audit by the manufacturer or distributor. If the manufacturer challenges the dealer's declared rate, they must propose an adjustment within 30 days, and if the dealer disagrees with the proposed adjustment, they can file a legal action. Importantly, in any such legal dispute, the manufacturer bears the burden of proving that the dealer's rate is inaccurate or unreasonable. The bill also explicitly defines "fair and reasonable compensation" as the reasonable labor time allowances from the dealer's typical retail labor time guide, which provides clear guidance for determining appropriate warranty service compensation.

Labor and Employment

https://malegislature.gov/Bills/194/H4019