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MERCEDES-BENZ OF CALDWELL 1220 Bloomfield Ave. Caldwell, NJ 07006
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JAGUAR BROOKLYN 809 Neptune Ave. Brooklyn, NY 11224
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LAND ROVER BROOKLYN 809 Neptune Ave. Brooklyn, NY 11224
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LEXUS OF EDISON 711 US Highway 1 Edison, NJ 08817
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P.O. Box 734 Neptune, NJ 07753
EXECUTIVE DIRECTOR
Charles Bryant 732-922-8909 / setlit4u@msn.com
2023-2025 OFFICERS
PRESIDENT
Ken Miller, 821 Collision, LLC (973) 949-3733 / kmiller@821collision.com
COLLISION CHAIRMAN/
PAST PRESIDENT ATTENDING
Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net
MECHANICAL CHAIRMAN
Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com
TREASURER
Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com
SECRETARY
Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com
BOARD
Nick Barbera, Union Collision 908-964-1212 / nick@unioncollision.com
Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.com
Brad Crawford, Livingston Collision, Inc. 973-992-5274 / livingston.collision@gmail.com
Todd Fontana, Proline Body & Chassis 201-398-1512 / todd@prolinebody.com
Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com
Dean Massimini, Autotech Collision Service, Inc. 856-232-1822 / autotechnj@comcast.net
Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com
Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com
Anthony Trama 973-818-9739 / anthonytrama@aol.com
BOARD ALLIED
Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com
Mike Kaufmann, Mike Kaufmann Dealer Group 973-332-7014 / mkaufmann@adps.com
PRESIDENT/PUBLISHER
Thomas Greco / thomas@grecopublishing.com
VICE PRESIDENT/SALES DIRECTOR
Alicia Figurelli / alicia@grecopublishing.com
EDITORIAL DIRECTOR
Alana Quartuccio / alana@grecopublishing.com
SENIOR CONTRIBUTING EDITOR
Chasidy Rae Sisk / chasidy@grecopublishing.com
OFFICE MANAGER
Donna Greco / donna@grecopublishing.com
PRODUCTION COORDINATOR
Joe Greco / joe@grecopublishing.com
CONTRIBUTING
Corporate: (973) 667-6922 / FAX: (973) 235-1963
Sound Off! New Jersey Automotive’s Annual Industry Survey Returns in October
AASP/NJ Members Get Educated on Employee Handbooks and Risk Management by Alana Quartuccio
18TH ANNUAL LOU SCORAS
GOLF OUTING
18 Tuesday, September 16, 1pm Shotgun Start Knob Hill Golf Club, Manalapan, NJ
NATIONAL NEWS
22 Hyundai Strengthens Position on Pre- and Post-Repair System Scanning by Alana Quartuccio
LOCAL FEATURE
26 Equal Footing for New Jersey Drivers: A Q&A with Senator Paul Moriarty on Right to Appraisal by Chasidy Rae Sisk COVER STORY
30 Is Big Money Driving Shops to Cruise or Crash? by Alana Quartuccio
LEGAL PERSPECTIVE 34 More Hours, Less Tax: What the OBBBA Means for Technicians and Employers by Martin D. Hauptman, Esq., CPA
AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY
36 Wharton Insurance Briefs by Mario DeFilippis
Joe Amato, Sr. Ron Ananian Jim Bowers
Chard
Tom
Bob
Thomas
Rich
Wes Kearney
Nick
Keith Krehel
Joe Lubrano
Michael Lovullo
Jeff McDowell
Jerry McNee
George Petrask
Russ Robson
Jerry Russomano
George Threlfall
Anthony Trama
Cynthia Tursi
Lee Vetland
Paul Vigilant
Rich Weber
Brian Vesley
Glenn Villacari
Stan Wilson
The Diving Board
Do you remember growing up when one of the biggest topics in school was the extinction of certain animals? For some reason, I remember always being lectured on how the Bald Eagle or the Humpback Whale were in danger of becoming non-existent. There was a lot of that kind of stuff going around. Remember the commercial with the Indi…I mean, Native American with the tear in his eye after he saw someone throw trash out of a car window? (And did you know that the Indi..I mean Native American in that commercial, Iron Eyes Cody, was actually an Italian guy named Esper Oscar de Corti from Louisiana?) Like it or not, that commercial certainly made an impression. I mean, when was the last time you saw someone throw trash out of a car window? In fact, litter is pretty much extinct compared to those days, right? Saving animals is a great thing. So is keeping America beautiful. But while I was flipping through social media the other day, I saw a post that reminded me of something else that has gone extinct, which bothers me way more than the loss of a Red-Cockaded Woodpecker: Diving boards.
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That’s right, diving boards. What the hell ever happened to diving boards?????
Look, I’ve bragged – I mean, mentioned – that we had a built-in pool when I was growing up, and we had the coolest diving board (along with a slide, an indoor/ outdoor rug and a “G” painted on the bottom of the pool). Don’t hate me. My dad started with nothing and built a construction company, a house and a pool from scratch, so I will never feel guilty.
Back to the diving board. We had so much fun diving, jumping, playing football – you name it – off of that thing into the 10-foot deep end. My cousin Billy (the White Pearl) used to do double and triple flips off of it!
My dad loved that diving board. Looking back, it’s pretty funny because he never learned to swim. He would always stay in the shallow end and do his “dead man’s float” from one side to the other. If he ever drifted down to the deep end, he would make sure to hold on to that diving board for his life. But he loved to relax, smoke his Lucky Strikes and drink his Schaefer beer while sitting on it. For some reason, he also loved to have his picture taken on and around it.
Back then, diving boards were everywhere. When we took our very rare trips down the shore, every hotel/ motel had one. Many had two: a high dive and a regular one. Hell, I remember we drove to Miami Beach in 1967, a three-Cadillac convoy of Northern New Jersey Italians headed through Dixieland. I will never forget the Florida diving boards. They seemed taller than the hotels we stayed at!
I can’t tell you the last time I saw a diving board. I drive around my town, and I don’t see any. We go down the shore every year, and none of those hundreds of hotels or condos has one. In Orlando, we have stayed at the majority of Disney and Universal Hotels. Not a diving board in sight.
So, why did they disappear? I asked ChatGPT, and here were the top five reasons it gave me:
1. Safety Concerns (wimps)
2. Insurance Issues (OF COURSE)
3. Maintenance and Space (pus…I mean, fraidy-cats)
4. Changing Trends (cowards)
5. Regulations (wusses)
Oh, man. Whatever happened to fun?
Wait a minute. I just did a Google Earth search for my old house. The diving board is STILL there!
My dad would be proud.
Education is the Foundation
Recently, I had the opportunity to join an exercise with a group of state and national association leaders from across the country. Our mission was simple, at least on paper: identify the most pressing issues our members face in their businesses today.
Before we began, the facilitators conducted quick personality assessments and divided us into four groups. I found myself with others whose results mirrored mine. We were labeled the “engineers,” the thinkers, planners and problem-solvers who like to dissect an issue, understand the mechanics behind it and build solutions. Once in our groups, we set out to brainstorm. One by one, we listed the challenges our members face: insurer pressure on rates, keeping up with rapidly evolving vehicle technology, staffing shortages, parts delays, understanding OEM requirements, the increasing complexity of repairs and the ongoing struggle to get paid for the work required to restore a vehicle to pre-loss condition. It did not take long before a pattern began to emerge. No matter the topic, whether it was technical, operational or financial, the root cause kept pointing back to the same place.
Education. Or more specifically, the lack of it. By the time we wrapped up, I realized that nearly 90 percent of the issues collision repairers face every single day trace back to one thing: we, as an industry, have not fully educated ourselves on how to handle these challenges. That is not to say shops are not
by KEN MILLER
working hard or that they do not care about doing things right. The reality is that this industry changes faster than many are prepared to adapt, and without constant, deliberate learning, we find ourselves reacting instead of leading.
Education, in this context, means more than just attending a class here or there. It is about building a culture where we actively seek out knowledge. That means learning to interpret OEM repair procedures without compromise, understanding the legal and regulatory environment in which we operate, mastering business and negotiation skills and training every team member – from front office to technician –on both technical and customer-facing best practices. The “engineer” in me views this like a blueprint. Every major frustration we face, such as delayed payments, disputed repairs, safety oversights and inefficient workflows, is a symptom. The foundation that fixes them all is knowledge. The stronger that foundation, the less room there is for outside forces to dictate the quality of our work or the viability of our businesses. This is exactly why AASP/NJ has made education one of its top priorities. Over the years, we have developed and delivered a wide range of programs designed to give our members the tools to succeed. From our flagship NORTHEAST® Automotive Services Show with its packed seminar schedule, to targeted training on OEM repair procedures, ADAS calibration, estimating best practices, legal and regulatory updates and business management, our goal has always been the same: to prepare you to meet challenges with confidence. These programs are not just about learning for the sake of learning. They are about providing practical solutions to realworld problems. Every class, seminar and workshop is an opportunity to gain an edge, strengthen your operation and protect your business from forces that work against quality and profitability.
If there is one message to take away, it is this: education is the foundation for solving the problems you face every day. It is not optional. It’s survival.
Being an AASP/NJ member has its privileges. Between savings and revenue generated by AASP/NJ member benefits, discounted education and training opportunities, access to the AASP/NJ Labor Pool and Hotline, advocacy in Trenton and exclusive members-only access to documentation, forms and regulations on aaspnj.org, you simply can’t afford NOT to be an AASP/NJ member!
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Unlocking the Tools to Building Business
Hello to all. I don’t know about you, but it has been a very busy summer since I accepted the position as AASP/NJ’s mechanical executive director. Throughout my travels visiting members and non-members, I seem to be encountering three recurring themes: employees are hard to find and maintain, costs are rising rapidly and vehicle engineering and technology is advancing at an extreme pace.
The shops I have visited so far are busy. Some are bursting at the seams, which is a good thing, but if you are so busy, are you not preparing for the future? Are you marketing your business to your best advantage? Social
media is inexpensive and fairly easy to monitor. Facebook, TikTok, Instagram, YouTube, Snapchat, X, etc. – become a social media user or guru to promote your business. Are you taking advantage of exclusive members-only credit card programs, lube and insurance programs? You could be saving big money and creating a nice nest egg for the slow times (we’ve all been there).
Hiring and retaining qualified technicians is an ongoing dilemma we all are facing. My advice after 47 years in business is to grow a first-class technician. Find a person with an interest and passion for our field. Spend the time and energy to work with them and share your skills
by JOE OCELLO
and expertise. Mistakes happen, but working with an inexperienced person also allows you to create good habits instead of trying to break bad ones. Keep their loyalty by implementing an incentive program. It’s not just about money; learn what makes them tick, what they enjoy, and listen to what they say. Ball game tickets, racing events, dinner out. Let them know they are appreciated, because without good, trustworthy technicians, where would you be? You don’t need to get crazy or be a push over, but everyone wants to be acknowledged. Show all your employees you appreciate them in some way. Hopefully, in the not too far-off future, AASP/NJ will have a program set up with all the local vocational schools to help alleviate the technician shortage by supporting students who will soon become potential entry-level employees. But, you – the members–will need to participate in grooming the future of our industry.
The repair industry is moving at lightning speed. Vehicles are getting more and more complicated and training – continuous training – is a must if you want your business to grow and prosper. Time is money, and a well-trained technician with good ethics is a gold mine. If you treat them well and realize their value, both you and they will be happy. My dad always said, “Treat your employees the way you want to be treated.” He put 45 years in our business, and I put 47 years in, and we had very little turnover. I know the atmosphere is different today, but people are still people. Respect
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Sound Off! New Jersey Automotive’s Annual Industry Survey Returns in October
Attention all automotive repair professionals in the Garden State! We want to hear from you!
Beginning October 1, the annual New Jersey Automotive Industry Survey will be giving repair professionals all across the state an opportunity to sound off about all the things they contend with daily in this everchanging industry.
For close to a decade, New Jersey Automotive has been collecting data from the automotive community yearly, building up a resource of interesting facts and trends about the industry with the results published in the magazine every December.
It’ll be interesting to see what repairers have to say about their readiness for further advanced vehicle technology, what the newest expected challenges are and which insurance companies give them the most headaches. Will Allstate, Progressive and State Farm once again be crowned the notorious big three?!
Last year, we asked repairers if they perform ADAS calibrations in-house or sublet with 48 percent of readers reporting they sublet out. With more and more repair shops expanding into the ADAS calibration universe, we look forward to seeing how this number may have changed since last year.
Shops continued to report that their crew is aging out with more than 90 percent of respondents over the past few years claiming to have employees over the age of 50; however, interesting to note that the number of youngest employees between the ages of 18-25 seemed to be growing, with 70 percent of survey takers having an employee in that age bracket. Is that still the case in 2025?
The 2024 survey revealed some positive outlooks for the industry. One hundred percent of survey takers reported their current state of business at a five or higher,
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AASP/NJ Members Get Educated on Employee Handbooks and Risk Management
When it comes to having a proper comprehensive document that outlines an employer’s company policies, procedures and expectations for employees, there is no one-size-fits-all method to putting one together.
Because protecting one’s business and risk management are so important, especially in the complex automotive industry, AASP/NJ brought attorneys Seth Rosenstein and Layne Feldman of Ansell Grimm and Aaron, PC to address the membership last month via a webinar focused on tailoring an employee handbook for collision and mechanical shops.
Downloading a sample employee handbook just will not do, according to Rosenstein and Feldman, as it’s not likely to address the various business practices of an automotive shop. It’s important to have a document that is unique to one’s business, reflects the culture of the company and serves as the legal and operational framework for both the employer and the employees.
Feldman reports that many clients have often asked why they “need this stupid thing,” but the fact of the matter is that it helps shops avoid legal vulnerabilities. “If you get pulled into a Department of Labor investigation or heaven forbid, a lawsuit, your policies and your employee handbook will be the first thing you’ll be asked for. It’s something you can produce that demonstrates how you comply with the law.”
This document should be shared with all employees, but as Feldman pointed out, one must keep in mind that you want your handbook to be geared toward the “worst employee” – the one who is consistently late or takes advantage of time off. “You want to consistently enforce policies so that they set forth what they are, and you want to communicate and apply them to all.”
Rosenstein and Feldman walked the AASP/NJ community through the various components the handbook should include, such as mission statements, family history, PPE and cybersecurity policies, Equal Employment Opportunity, anti-harassment policies and local New Jersey state laws.
“Compensation and benefits is what employees will be likely to flip to first,” Feldman pointed out. “They will want to know about paid leave and other perks, so it’s very important that time off policies are in the handbook and enforced. The appropriate amount of time should be given for sick leave.” A business could be subjected to serious penalties if the appropriate earned sick leave is not given as per New Jersey law, she pointed out.
Employers will want to take disciplinary procedures into consideration when building an employee handbook. “There will always be bad eggs, no matter what industry you are in, and there should be procedures on how to deal with them properly,” explained Rosenstein. “It could make
it harder for an employee to pursue you if you have a solid process and set forth what grounds for termination are.”
The attorneys noted an acknowledgement form should be included, signed by the employee upon receipt and kept on file should there ever be a reason the shop needs to show proof that policies were shared should an issue arise with an employee.
Particularly important to automotive repair shops, Rosenstein suggested employers may want to address policies for training employees to protect the shop’s investment. “You could include details about what happens when you invest in an employee to get certified,” Rosenstein explained. “You spend a lot of money on the training as well as the downtime spent with the employee not working in the shop, so you don’t want them to leave the shop just six months after you invested in them. We can work out policies that ensure you won’t lose your investment within a reasonable amount of time.”
The legal team also dove into risk management strategies to consider as the automotive world contends with customer disputes, OSHA, data privacy and insurance company pushback. Maintaining documentation is key in this area. “Make sure there’s a process for maintaining work orders and disclaimers. Have well drafted and retained vendor agreements and insurance carrier communication.”
AASP/NJ President Ken Miller thanked Rosenstein and Feldman and those who took the time to tune into the virtual presentation. “This information is more valuable than you can imagine. It’s important to protect ourselves and know what we are doing in our businesses. As an association, it’s important for us to bring this information to our members to make sure they know what is required.”
DIRECTOR’S MESSAGE
continued from pg. 12
and appreciation go a long way. Keep a look out for educational opportunities coming soon.
AASP/NJ and myself will continue to recruit additional benefit partners in our quest to help you grow and prosper your business.
As I continue this journey in my new role as the mechanical executive director, I want to extend a sincere invitation to all our members and future members to reach out, engage, share your thoughts, insights and experience. Building strong professional relationships is the foundation of creating connections built on trust, respect and a shared passion for improvement of self and our businesses.
I look forward to working with you all as we continue to promote an organization of incredible ethics and prosperity.
Until next time, be balanced, be safe, and please feel free to reach out to me or our office at any time.
LOCAL
continued from pg. 14
the highest rate reported since 2021. Stay tuned to see if that perspective has changed over the past 12 months and if repair professionals are beginning to embrace artificial intelligence.
The survey only takes a few minutes to complete, and the information you share can go a long way in helping to paint a picture of what is really happening in shops across the state. And best of all, one lucky survey respondent will be selected to win a prize courtesy of Greco Publishing! Don’t worry, answers will be kept anonymous, so there is nothing to lose but much to gain! All of the results will be published in the December 2025 issue of New Jersey Automotive available at grecopublishing.com
AASP/NJ members can visit aaspnj.org to take the survey or watch their inbox for details. Shops interested in taking the 2025 New Jersey Automotive Industry Survey can email info@grecopublishing.com with the subject line “Industry Survey.”
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AASP/NJ THANKS OUR 2025 SPONSORS:
PLATINUM SPONSOR: Metropolitan Car-o-liner
GOLD SPONSOR: Matthew's Auto Supplies
SILVER SPONSOR: Albert Kemperle, Inc.
LUNCH SPONSOR: Auto Body Distributing Co.
DINNER SPONSOR: Fenix Parts
LONGEST DRIVE SPONSOR: Indasa USA
HOLE-IN-ONE CONTEST SPONSOR: K&L Auto Body
CLOSEST TO THE PIN CONTEST SPONSOR: Bill Flannery Automotive
HOLE SPONSORS: Conicelli Toyota, D&M Auto Body, DJs Restoration Collision Repair, Douglas Volkswagen, Hertz, Mike Kaufmann Dealer Group, NJ Automotive / Greco Publishing
Hyundai Strengthens Position on Diagnostic System Scanning
Pre- and post-repair scanning is not optional when it comes to a complete and proper repair. To solidify that fact and align with evolving vehicle technology and safety systems, Hyundai Motor America recently updated its official position statement on diagnostic system scanning to reflect that pre-repair and post-repair system scanning is a required step in a proper and complete repair.
The updated position clarifies the essential role of diagnostic scans in identifying and validating electronic system performance before and after repairs. These procedures ensure all onboard systems are functioning as intended, especially with the increased presence of ADAS, and stresses that scanning is indeed a required – not a “recommended” –process.
Hyundai’s Wholesale Parts Sales Operations Senior Manager John Brown reports the manufacturer is “enthusiastic about the recent adjustment to the position statement language”.
Brown says it all came about simply because “we listened. We listened to the certified body shops, the MSOs and also the independent shops. We know the significance of that one word change. Not only did we listen, we acted and executed that change.”
Brown shared that once the decision was made, “Hyundai moved quickly! As soon as the company recognized its importance and the value it would bring to our body shop partners, they took action and make it happen right away.”
Quality repairs is number one, hence the importance of getting the message across because “we were not confident that [pre- and post- repair scanning] was
happening consistently across the board. That is not just anecdotal; there’s factual data that we get from the industry indicating without the ‘required’ notation in the position statement, pre and post scans are not done on a consistent basis.”
Brown pointed to several reasons why shops may not be scanning consistently; from the cumbersome insurance approval process to limited time and resources, especially a shortage of technicians, which remains a concern across the collision industry.
“So much is missed when scanning is not done,” Brown stresses. “There are hidden damages that go unnoticed, especially in later model vehicles. There are dozens of control modules, so if they are not scanned, there’s no warning. There’s no DTC code that alerts of an issue.”
Failing to scan puts customers at risk as they could be driving vehicles with serious unknown issues. “Hyundai wants to ensure a quality repair is administered every time.”
In addition to keeping Hyundai drivers safe, proper repairs also protect the brand. Brown noted “that data shows accidents often lead to higher defection rates, as owners may connect the brand with the collision experience. That’s why ensuring customers feel safe and confident driving Hyundai vehicles remains a top priority.”
“We are committed to quality repairs as well as the safety and satisfaction of our customers. Our focus is to fix it right and do it right the first time.”
Hyundai’s updated position clarifies the essential role of diagnostic scans before and after repairs.
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Equal Footing for New Jersey Drivers: A Q&A with Senator Paul Moriarty on Right to Appraisal
Right to Appraisal empowers policyholders to dispute unfair insurance claim settlements following a car accident, but as an increasing number of New Jersey carriers remove or limit the Appraisal Clause offered in their policies, AASP/NJ has voiced its support of Senate Bill (SB) 4534, legislation proposed by Senator Paul Moriarty (D-District 4) that seeks to require all automotive insurance policies issued in the Garden State to include the Appraisal Clause, providing policyholders with the means for a fair appraisal and adequate indemnification. (Read the bill in its entirety at bit.ly/SB4534.)
Last month, New Jersey Automotive discussed why it’s so important for policyholders to retain their Right to Appraisal (RTA) with AASP/NJ leaders (available at grecopublishing.com/nja0825coverstory). While most body shops are aware of this vital consumer protection and its uses to combat under-indemnification, passing legislation to preserve this right requires the intervention of legislators, who must first be educated about what RTA is and why it matters!
So, how did Senator Moriarty learn about RTA, and what convinced him that it was important enough to his constituents to advocate for inclusion of the Appraisal Clause in all auto insurance policies written in New Jersey? He graciously sat down with New Jersey Automotive to share his thoughts with readers.
New Jersey Automotive: Thanks for chatting with us, Senator Moriarty. In May, you introduced SB 4534 to the 221st Legislature. What is the purpose of SB 4534? What problem(s) would it solve?
Senator Paul Moriarty: The goal behind SB 4534 is to give consumers an equal footing with insurers. Insurers should be advocates for their policyholders, but it does not seem like that’s always the case. As consumers, we purchase a product – our insurance policies – and expect our carriers to look out for our best interests,
but I’ve heard from some of my constituents that those expectations have been disappointed, leaving them feeling that they’ve been abandoned by their insurance company and put in a difficult situation where they must decide between getting their vehicle repaired at a certain price point or a specific location where they aren’t confident in the safety of the repairs…or believing the shop they trust that insists there’s much more damage, which will cost double. Stuck in the middle, the consumer doesn’t know what to do. Meanwhile, they need their car, so there is a time pressure as well as a financial pressure.
Of course, this doesn’t happen on every claim. I’ve personally had very good experiences when I’ve needed vehicle repairs and felt my insurer took care of me properly; however, I’ve learned of instances where that’s not the case. For example, a constituent took their car to the certified shop they’ve trusted for years who told them that there was $20,000 in damage, but after a 10-minute inspection, the insurance adjuster wrote an appraisal for $5,000 because they didn’t see what was behind the dented frame and insisted the car could be fixed for that price at a [DRP] shop across town.
There seems to be a disregard for the fact that vehicles are becoming more complex with sensors and other ADAS equipment that require repairs and aren’t immediately visible. This is not your father’s Buick. I sympathize with the insurance companies that are trying to maintain profitability, but consumers deserve to be protected and should have the right to contest the appraisal that their carrier gives them by hiring their own appraiser and hashing out the details. I’m not sure SB 4534 will completely resolve every under-indemnification problem, but it will ensure every policy includes the Appraisal Clause, giving New Jersey drivers the ability to protect their own interests.
NJA: How did you learn about Right to Appraisal, and why did you decide to sponsor SB 4534?
PM: Several constituents in my district brought this issue to me, and I didn’t know what to do, so I started educating myself on RTA. One lady was a widow whose husband passed away the year before. He had always dealt with anything related to her vehicle, so when she got into an accident, she took her car to the shop that he had always dealt with. That shop told her there was $18,000 in
Senator Paul Moriarty
damage, but her insurer insisted it would only cost $3,500 to repair it. She didn’t have the money to make up the difference, so the carrier wanted her to take it to another shop, but she was hesitant because the shop she trusted assured her that $3,500 would not repair it properly. Luckily, her policy included the Appraisal Clause, so she invoked the RTA and received the $18,000 needed to correctly repair her car.
But what if her policy hadn’t included that provision? No one should have to deal with this type of dilemma. While educating myself on this issue, I’ve heard countless examples from shops of nearly identical situations, and it’s baffling. I can’t help but wonder how an insurance appraiser can spend 10 minutes looking at a car, never talk to the shop that performed a complete disassembly and then insist that the shop down the street can fix it for less. How do they know how much it will cost at a shop that hasn’t even seen the car?!
NJA: What experience do you have with consumer protection legislation of this nature?
PM: I’ve been a consumer advocate for many years. Long before I became involved in the government, I spent 25 years as a reporter on consumer affairs in Philadelphia. As a New Jersey Assemblyman, I chaired the Consumer Affairs Committee for 16 years. I’ve always been interested in supporting issues that affect consumers; because they typically don’t have lobbyists roaming the hallways in Trenton, I’ve taken it upon myself to advocate for their interests to ensure they aren’t getting ripped off. When it comes to RTA, the more I learned, the more I became convinced that the Legislature needs to take action to correct this issue. SB 4534 is a great first step in the right direction.
NJA: If SB 4534 passes and becomes part of New Jersey law, how will it impact your constituents?
PM: Everyone would have the right to challenge their insurance company’s appraisal which would help ensure they’re receiving the amount due to them to properly repair their cars. The option of arbitration is unrealistic because few lawyers are willing to take a case with so little money involved, plus lawsuits aren’t just costly; with the courts being so backlogged, they are also timeconsuming in a situation where the vehicle owner doesn’t have time to wait. They need their car now. If all insurance policies include the Appraisal Clause, it then falls on the body shops to educate their customers about this policy protection, and as more consumers begin invoking the RTA, perhaps insurers will start writing more reasonable appraisals in the first place, rather than
forcing their policyholders to challenge them for failing to do the right thing.
NJA: Prior to the Legislature’s break for summer recess, SB 4534 was referred to the Senate Commerce Committee. Once the Legislature returns (likely in November), what are the next steps?
PM: Once we get it past the Commerce Committee, we need to get SB 4534 on the agenda for the Senate Banking and Insurance Committee to be reviewed during one of their two meetings this year. We can do that by creating more buzz around the importance of RTA and ensuring Senate President Nicholas Scutari [D-District 22] is aware of how vital this protection is for New Jersey consumers since he approves the committees’ agendas. [Scutari can be contacted at senscutari@njleg.org.]
NJA: How can industry professionals and consumers show their support for SB 4534?
PM: Until my constituents started contacting me about this issue, I didn’t know anything about RTA; I had no idea this was happening to people. So, it’s likely that other legislators are unaware that this is even a concern. At any given time, there could be as many as 3,000 bills on the table, so it’s impossible to know about all of them, but as legislators, we represent the citizens of our districts, and if we know something is important to them, it’s going to get our attention. Nearly every bill I’ve supported during my 21 years in office originated with a call, email or conversation initiated by a constituent who educated me on a problem they’d encountered, which led me to decide ‘we need to do something about this!’ If it matters to the people I’ve been elected to represent, it matters to me, too.
Shops need to educate their customers, and both parties should reach out to the senators and assemblypeople representing their districts to educate them about RTA and ask them to sign onto SB 4534 as co-sponsors or to support the bill when it gets put to a vote.
Access contact information for your district’s New Jersey senators and assembly people by visiting njleg.state.nj.us/legislative-roster
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They say one has to spend money to make money. In the collision repair space, that phrase is an understatement. Let’s face it. Dedicated collision repair business owners have always been known to pour blood, sweat and tears into their businesses, but nowadays it appears to be a lot less about sweat and tears and more about bleeding money into the various needs and requirements the industry commands in 2025.
Competition is out there, and that could easily influence independent body shops to keep up with the times. According to a recent CRASH Network “Who Pays for What?” survey, 52 percent of the 300 shops surveyed
indicated their market as “very competitive.” And apparently, work won’t be drying up just yet, especially with LexisNexis reporting an increase in distracted driving by 68 percent year-over-year across all age demographics.
What does all this mean for the independent collision repair facility? Well, in order to have a stake in the game, a shop has to get their hands on as many accreditations as they can to prove they are the “shop of choice.” The picture varies from shop to shop but can easily include bundles of funds and time spent on I-CAR training and financial commitments into each and every OEM
certification a shop wishes to pursue. Then, of course, there is all the equipment and training that goes along with all of the above. Combined, this can amount to a small fortune!
So, how does the independent body shop – the average collision repair facility, let alone the “mom and pop” shop – keep up with these demands of today’s collision repair world? Is it realistic for some and just a pipe dream for others?
“I think you’re always going to have a population of businesses that don’t want to invest in their business and continue to do what they’ve done, and that is very difficult to do in this industry, especially with the changing pace of technology and the expectations involved,” observes Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg. Many may view the various requirements of the industry as ways to get shops to spend more money, but they may not see the implications they have on the actual repair process based on all the various requirements that make training and equipment necessary and could lead to a viable business, he points out.
“It takes re-evaluating your business model on a regular basis to make sure the decisions and investments you make will deliver a return and can be amortized over a particular amount of time and can be recovered. Business owners, whether large or small, need to work closely with their support system to take a clear look at what they are spending in order to determine if they can maintain a pace and create a business model with pricing and the understanding of true cost of labor to be able to get a return on investment.”
Fifteen years ago, Jerry McNee (Ultimate Collision Repair; Edison) made the decision to pursue OEM certifications. All these years later, he currently has 26 OEM certifications.
He admits it hasn’t been a simple or easy process; some OEM certifications are simpler than others, such as ones with no parts restrictions. However, McNee says even the easier ones are “starting to be more invasive with what they are requiring and how specific things need to be. Keeping tabs on all the equipment, new products and tools required is practically a full time job.
“It almost requires a full-time employee just to manage the programs,” he says. “Between the training requirements, the tooling and audit reports, it’s a whole new entity by itself.”
“Shops need to have an understanding of what it means to be a true OEM certified shop and partner for that manufacturer,” suggests Dave Gruskos (Reliable Automotive Equipment) about making the right decisions for one’s business. “Before they even look at a certification, shops need to ask themselves if they regularly visit the dealer and know the general manager and sales manager. Because when a car is in a collision, the body shops will be involved in the OEM parts. There’s a relationship there and the dealer becomes a partner.
“All the certifications have very specific equipment
required for the ones that are going to be restricting parts and such that will make it profitable for the body shop,” he continues.
As McNee indicated, maintaining certifications does take an investment in time – as well as money. “If they are truly partnering with the OEMs, they will be reading the emails that are sent to them from the OEM regularly informing shops on what is coming up, what is needed, as well as where and how to purchase it,” confirms Gruskos. “As far as training goes, it’s very difficult for the shop to manage multiple certifications because the paperwork coming up on the training, the emails coming in on the training and getting themselves registered in the proper training classes become a challenge, as well as the time they lose sending their best technicians away for training.”
“A body shop looking to pursue any of the big wellrecognized certifications is going to spend upwards of half a million dollars right off the top on equipment,” indicates Gruskos. “That equipment will last a very long time and will have a very long life. So, knowing what to buy, what’s required and where and who to buy it through is so important.”
If it is all such a huge undertaking, what is motivating shops to embark on this path? For starters, McNee believes strongly in having the knowledge and support to back up fixing cars correctly because, at the end of the day, the liability is on the shop. It’s also a way to distinguish one’s business from the competition. It’s a big commitment. “A lot goes into it. It’s like the iceberg effect where you only see what’s on the surface and not everything below it.”
Collision shop owners need to think about what works best for their business and their market. “The days of ‘we fix everything’ are long gone,” says Mark Allen (Audi of America). A shop has to be realistic about what their market looks like and what works best for them. “Whether one is a single-person shop or an MSO, you really need to look at your business and determine what your business plan is. We shouldn’t be fixing everything, so you need to pick and choose what best suits your business, and that’s how you build your ROI from there.”
Addressing a common complaint that different programs require different tools, Allen says, “If you really look at it, there is commonality among many of the different brands. I say that knowing that [Audi] is the most specific. The equipment that we require has programming or design features unique to Audi and Volkswagen brands, but that doesn’t mean they’re exclusive to that. They can be used for Mercedes or BMW. Some shops leverage this to their advantage to build out their ROI.”
As for I-CAR training, it’s practically a “prerequisite to get anywhere else,” McNee states, especially in pursuit of OEM certifications. “JLR (Jaguar Land Rover) is done at an I-CAR facility. Honda and Acura are coming out with a new EV platform, and I-CAR will be hosting [training] for
that. Some manufacturers are leaning on I-CAR for this type of training.”
Aside from meeting requirements, the larger challenge is finding the time and money to put into it all. “It can be a costly venture,” McNee admits, citing the expenses that go into flying technicians all over the map to train. “I just had five employees out in the last two months, and one is out currently for training. It just doesn’t end.”
McNee estimates that between training and travel costs, his business has spent close to $340,000 in just seven months of 2025 so far. On top of that, he believes another $160,000 has been invested in tooling and equipment this year alone.
“It’s not for the faint of heart, but not everyone has to be at this level,” he says of his business model.
Schulenburg says all the various training requirements can make a shop owner feel much like a travel agent these days. “They may have their most productive technicians on the road far more frequently than they ever did before, sending them off to in-person hands-on training to maintain those certifications. There’s now testing requirements that technicians need to meet in order to prove that they still have the capability of performing these tasks. There is a cost associated with that, not just in the cost of travel, but in the cost of lost labor for some of your most productive employees.”
I-CAR’s Gold Class program follows OEM repair standards and is recognized by 36 DRP and OEM network programs, providing shops with a baseline for professional development. Using this framework helps shops organize training, work efficiently, and stay compliant with the programs they choose based on their business objectives and market, supporting repairs that contribute to complete, safe, and high-quality outcomes for their customers.
What is the financial commitment to achieve I-CAR Gold or Platinum status? According to Kyle Thompson, CEO of I-CAR, costs are dependent on the shop size and technician experience. Monthly or yearly payment plans are offered for the Get to Gold Class package to help with budgeting and up to 10 percent discount toward remaining training to achieve Gold Class. Once achieved, Gold Class shops receive a 20% training discount and can join a subscription program with monthly or annual payment options.
“While the complexity and cost of vehicle repairs have increased due to ADAS, mixed materials and advanced systems, I-CAR has kept individual course pricing stable,” he explains. “At the same time, the depth and the quality of our training have grown to keep pace with evolving vehicle technology.”
Although costs may rise and vary per shop, Thompson reports “a steady increase in shops participating in training,” achieving two major milestones of 100,000 I-CAR learners trained within 12 months and 10,000 Gold Class shops. “These milestones not only
demonstrate the dedication of shops and technicians to continuous learning but also signal a bright future for the collision repair industry, where commitment to skill development and safe, high-quality repairs continue to grow stronger every year while vehicles grow increasingly more complex.”
Are shops of all sizes keeping up with I-CAR training? According to Thompson, “Shop sizes naturally vary, influenced by each business’s objectives, regional needs and network involvement.
“Gold Class shops are represented across all sizes, segments and ownership types, from independent shops to MSOs,” he continued. “The drive to train and improve skills comes from the shop and its leadership.”
So, where small body shop businesses may need to rely heavily on large corporations like I-CAR and OEMs for guidance and to stay valid, most of them do set out to partner with the shop.
Allen says Audi’s certification program is open to all, and it includes resources such as their management tool, Entegral, along with position statements and videos lending to shops of all sizes.
“We have shops of all sizes, from one-man operations all the way up to MSOs,” Allen states of Audi’s certification program. Having OEM certification is indeed a distinction, but it also can more closely tie a business to the vehicles in the area. He suggests a business model be “relevant to where you live.” For example, where he lives, he sees many Audis and Teslas but a limited number of trucks and SUVs that perhaps General Motors, as an example, would manufacture.
“I think the heaviest investment of training is the initial part because you need to make sure that you have all your foundations laid out and set. After that first year, it becomes a maintenance sort of thing. Every two years, you need to re-certify for welding, whether it’s steel or aluminum.”
John Brown (Hyundai Motor America) notes that one of the major challenges shops face in pursuing OEM certification is cost, yet Hyundai program is designed to welcome businesses of all sizes. In fact, Brown emphasizes that Hyundai actively encourages independent body shops to join the program.
“Obviously larger shops typically have the resources to manage certification costs, but our program is not exclusive to them,” Brown explains. “We don’t focus on quantity, we focus on quality. We want larger shops, but we also want smaller, independent shops that often fill important niche roles in their communities. Many of these independents are exactly the type of partners we’re looking for.”
At the same time, Brown acknowledges that cost remains a real hurdle. Certification expenses come on top of the many other costs shops already manage. “Smaller shops, in particular, feel that pressure more acutely,” he says. “Since COVID, the financial landscape has changed dramatically and businesses are scrutinizing
expenses more carefully than ever before.”
Brown adds that Hyundai continues to explore ways to further engage independents and multishop operators. “We’re always evaluating opportunities to provide meaningful support across the industry,” he shares. “That includes looking at how we can strengthen the value we bring to both larger operators and smaller independents. The goal is a well-rounded, inclusive approach that benefits shops of all sizes.”
Thompson says I-CAR made an update in 2019 to scale requirements to shop size so every shop, large or small, must have a proportional number of qualified role representatives in key positions to maintain designation, and each person can hold two of the four required roles. That way, each Gold Class shop “has the right level of trained professionals to meet industry standards, while also ensuring that they have a path appropriate for their business model.”
Where corporations may be open to working with shops of all sizes, there still are those true mom and pop shops who wholeheartedly don’t want to take that path – or just simply can’t (or won’t) – do it.
For Jeff McDowell (Leslie’s Auto Body; Fords), investing in OEM certifications is something he never felt was worthwhile for his business model. As for training, he’s spent his fair share of time on I-CAR in the past but has since decided it’s not for him. After 41 years, he is getting ready to retire.
“There’s not too many shops that operate the way I do,” says McDowell of his small operation. “It’s an old-fashioned mom and pop shop.”
He admits one of the reasons he’s retiring is because “it’s a modern world now. To upgrade, I’d have to spend a whole lot of money to keep up with the changes in the industry.”
McDowell knows he’s not alone. “It’s going to be harder
for the small shop. In the tri-state area, traditionally there’s been the neighborhood shop, but with people aging out and not wanting to come into this field, a lot of the old shops are gone or on their way out.”
He suggests that perhaps in other parts of the country, it’s easier for smaller shops to survive as they likely won’t have to deal with MSOs as much. Although it’s only been a short number of years, MSOs have
made their mark in the Garden State, but McDowell isn’t threatened. “I don’t really see MSOs as competition to replace someone like me here in my neighborhood.” He foresees once he closes his shop, that will be the end of the “mom and pop” shop in his area.
Could he invest in training and certifications if he wanted to?
continued on pg. 37
More Hours, Less Tax: What the OBBBA Means for Technicians and Employers
With long hours, last-minute jobs and seasonal rushes, overtime is a regular part of life for many in New Jersey’s automotive repair and service industry. As part of the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, a new federal tax deduction allows certain employees to exclude qualifying overtime wages from their federal taxable income, starting in tax year 2025. This temporary measure – set to run through 2028 – has implications for both employees and employers. In industries like automotive repair and service, where overtime is routine, it’s important to understand the eligibility requirements and reporting obligations that come with the new provision.
What Is the “No Tax on Overtime” Rule?
Beginning January 1, 2025, W-2 employees can deduct up to $12,500 in overtime pay from their federal taxable income each year. Those who file jointly can deduct up to $25,000.
This deduction applies only to federal income tax. Employees will still pay Social Security and Medicare taxes, and state income taxes will apply unless New Jersey conforms to the federal changes.
Who Qualifies?
To claim this deduction, the following conditions must be met:
• You must be a W-2 employee. Independent contractors (1099) and gig workers are not eligible.
• The overtime must qualify under federal labor law –typically time-and-a-half for hours worked beyond 40 in a week, per the Fair Labor Standards Act (FLSA).
• Your Modified Adjusted Gross Income (MAGI) must be below:
• $150,000 for single filers, or
• $300,000 for married couples filing jointly. (The deduction is reduced by $100 for every $1,000 above these thresholds.)
• You must file using a status other than “Married Filing Separately.”
Example: How It Works in Practice
Leo, a certified auto technician in Newark, worked significant overtime during the summer rush in 2025. He earned $11,200 in overtime pay on top of his regular salary. His MAGI for the year was $72,000. Under the OBBBA:
• Leo can deduct the full $11,200 of qualifying overtime pay from his federal taxable income.
• This reduces his overall income tax liability.
• Leo still pays payroll taxes on the full amount of overtime.
• His employer must report the $11,200 separately on his W-2.
What Employers Need to Do
1. Track and Report Overtime Separately
Employers must ensure that overtime wages are clearly distinguished from regular wages in payroll records and reported accurately on Form W-2 starting with the 2025 tax year.
2. Update Payroll Systems
Many payroll platforms may require updates to ensure proper classification and tracking of qualifying overtime pay.
3. Train Payroll Staff and Managers
Staff must be familiar with the new reporting obligations and any IRS guidance as it becomes available.
4. Communicate with Employees
Workers will benefit more when they understand what qualifies, how the deduction works and what documentation to retain.
Key Limitations
• No double-dipping: The same income cannot be claimed as both a tip deduction and an overtime deduction.
• No impact on payroll taxes: The deduction does not reduce liability for Social Security or Medicare taxes.
• No automatic state conformity: New Jersey income taxes are not affected unless the state legislature takes separate action.
What Comes Next
While the new tax rule may reduce some employees’ federal income tax liability, it places added emphasis on accurate payroll tracking and reporting. Employers should begin reviewing systems and policies now to ensure they are prepared for the 2025 tax year.
Martin D. Hauptman, Esq., CPA, is a Partner in Mandelbaum Barrett PC’s Tax, Trusts & Estates, and ERISA/Employee Benefits practice groups. For guidance on the OBBBA’s overtime deduction and how it may affect your payroll procedures, compliance efforts, or employee communication, please contact the Tax and Employment Law teams at Mandelbaum Barrett PC. You can reach Martin at mhauptman@mblawfirm.com or call (973) 243-7912 for direct assistance.
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Wharton Insurance Briefs
Building owners, beware!
If you own a building and lease/rent it to tenants, please take note of the “vacancy” provision in your policy. There are many building owners who rent out building space. During the pandemic, many businesses shut down, and buildings became vacant. The standard “Insurance Services Office” policy wording limits coverage for buildings that have been vacant for more than 60 days. Such limitations of coverage are theft, vandalism, sprinkler leakage, building glass, water damage, etc.
There are alternative policies that are available, although coverage on these policies may not be the same. For example, they may be on an Actual Cash Value as opposed to Replacement Cost basis. If your building is vacant or less than 30 percent occupied, contact your agent and make sure they’re providing you with the right coverage.
Any questions, please feel free to contact me.
Mario DeFilippis AAI Vice President Wharton Insurance Group (732) 686-7020 (direct line)
Keeping it Spotless: The Importance of a Clean Room for Aluminum Repairs
When performing aluminum repairs, preventing crosscontamination is crucial. Aluminum is highly sensitive to contamination, especially from steel. If you don’t prevent steel dust from settling on aluminum-intensive vehicle surfaces, galvanic corrosion will occur and weaken aluminum components. When aluminum exterior surfaces like the hood, roof or door panel are exposed to steel dust, galvanic corrosion can damage a paint job. Aluminum dust also is explosive when exposed to a spark.
A clean room minimizes the risk of cross-contamination by providing a controlled environment free from airborne dust, metal shavings, and other contaminants. This ensures that the aluminum repair process is conducted in optimal conditions, prevents surface damage and helps maintain the integrity of the repair as required by OEMs.
The RAE Body Repair Station features a curtain that has special light reflection as well as fire approved properties. This will isolate your aluminum work area from nearby bays. Accepted by leading OEM certified collision repair facility programs, the body repair station features an e-glass curtain that meets fire retardation standard EN-13501-1 (required by OEM certification programs across the globe). A builtin viewing window meets standards for eye protection of workers outside the aluminum bay. LED lighting helps provide ideal lighting conditions when performing intricate
The RAE Body Repair Station isolates your aluminum work area from nearby bays
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Perhaps, “but I’m a realist. I realize there are certain things I can’t do. I send a lot of work out to bigger shops [that can handle it]. You have to understand what your limitations are. If you go beyond that, you could get yourself into trouble.”
Shop owners need to be reminded that they do have choices. “Shops really have to analyze and ask themselves if that certification is even worth it,” Gruskos offers. “Because you can’t be everything to everybody and serve multiple masters. You have to pick the direction you want your company to go. If you do try to be everything to everybody, it’s simply going to be a race to the bottom.”
“Everything is an investment into your business, most especially training,” Allen suggests. Staying relevant and up-to-speed on the repair process and new technologies is an investment into the employees, as well. And to those who worry about investing in an employee who may abruptly leave, Allen suggests that training should involve everyone. “I think there’s some business maturity that we need in terms of how we grow our technicians and keep them in a career with us and give them what they need to grow as people. We kind of forget that technicians get old and tired. What is the next step for them? I think this is something the MSOs do a little bit better because they
are more corporate driven. Some of the small shop guys do a really great job with this, but some don’t. It makes a difference for the employee.”
Thompson believes training is an investment into safe repairs underlining that I-CAR’s commitment to the industry is based on the belief that “repair standards, proper equipment and continuous learning are non-negotiable.” Free resources like Ask I-CAR, the Repairability Technical Support (RTS) portal and app and other features “help technicians gain knowledge and follow OEM repair procedures with confidence.”
“I don’t think you can truly be a professional in the industry today and not be investing in that ongoing development,” Schulenburg believes. “It will be hard for some people, and some will choose not to do it, but I think there are a lot of businesses who do and are making a case that is successful. I don’t always think that’s dependent on how large or small the business is. I think it’s about how committed you are to that notion that this is a part of delivering safe, proper repairs to customers.”
McNee relays his investments have 100 percent been favorable to his business, but it all comes down to what works best for the individual business. “You can be a body shop, or you can be a full-fledged collision center. Which do you choose to be?”
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