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By Joe Marconi in Joe's BlogIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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By nptrb
One change that has been causing waves is the Corporate Transparency Act (CTA) and itsBeneficial Ownership Information (BOI) reporting requirements.
On March 25, 2025, the Fifth Circuit Court of Appeals is scheduled to hear oral arguments in a case challenging the CTA. This legal battle has the potential to change the future of BOI reporting.
I’m sharing this blog post because it’s essential for you, an auto repair shop owner, to understand what this case means for your business.
Understanding the CTA and BOI Reporting
The CTA, enacted as part of the Anti-Money Laundering Act of 2020, mandates that certain “reporting companies” file BOI reports with the Financial Crimes Enforcement Network (FinCEN). For many auto repair shops, this means reporting information about the “beneficial owners,” defined as the people in your business who:
Exercise “substantial control” over the company. This can include your staff who serve as senior management or direct your business’s financial decisions. Own or control at least 25% of the ownership interests of your business. The BOI report requires the following information for each beneficial owner:
Full legal name Date of birth Current residential address A unique identifying number from an acceptable identification document (e.g., driver’s license, passport) and an image of that document. Also, if your auto repair shop was created on or after January 1, 2024, you must also report information about the “company applicants,” which are the individuals who filed the documents to create the company.
The CTA has faced criticism regarding its scope and the burden it places on small businesses.
If you’re an auto repair shop owner who is concerned about the reporting requirements, you’ll want to stay tuned for the results of the upcoming court case!
The March Court Case
The Fifth Circuit Court of Appeals’ hearing is a pivotal moment in the CTA’s history. The challenge centers on the argument that the CTA exceeds Congress’s constitutional authority, specifically under the Commerce Clause and Necessary and Proper Clause.
Opponents argue that the broad definition of “reporting company” and the extensive data collection intrude on state-level business formation and legal regulations.
If the court rules against the government, the BOI reporting regulations will be drastically altered. Here’s a look at what may come:
A complete repeal of the CTA. Amendments to the CTA to narrow its scope or simplify reporting. A stay or injunction on the enforcement of the CTA within the Fifth Circuit’s jurisdiction (Texas, Louisiana, and Mississippi), with potential ripple effects nationwide.
What This Means for YOU as an Auto Repair Shop Owner
While the outcome of the upcoming Fifth Circuit Court of Appeals hearing is uncertain, it’s absolutely critical for you, as an auto repair shop owner, to stay informed and prepared.
The Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements are still in effect, so you need to maintain compliance until the court reaches a decision.
Continue to abide by the current reporting guidelines so you do not experience potential penalties.
It’s also wise to actively monitor news and legal developments related to this CTA challenge.
If changes are put into motion, you may need to adjust your reporting practices to align with any new regulations or guidelines.
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By Joe Marconi
While I know that in some states, paying techs on flat rate is not legal, from what I am hearing, there are a number of auto repair shops in states that do allow flat, moving away from flat rate.
What are your thoughts on flat rate pay?
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By carmcapriotto
Thanks to our Partner, NAPA Autotech
Matt Fanslow and Margaret Light, a Licensed Marriage and Family Therapist and Certified Sex Therapist in the state of Minnesota, discuss a recent murder-suicide within the automotive community. They discuss the alarming statistics surrounding such events, emphasizing the significant role of domestic violence as a predictor. The conversation explores risk factors, including untreated mental illness, access to firearms, and the dynamics of control within relationships. Finally, they offer practical advice and resources for identifying warning signs and seeking help for individuals at risk.
Thanks to our Partner, NAPA Autotech
NAPA Autotech’s team of ASE Master Certified Instructors are conducting over 1,200 classes covering 28 automotive topics. To see a selection, go to napaautotech.com for more details.
Contact Information
Email Matt: [email protected] Diagnosing the Aftermarket A - Z YouTube Channel
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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