Illinois Sen. Christopher Belt’s (D-Swansea) House Bill 3940, when enacted into law, would require that automotive technicians be given fairer compensation.
The bill has passed the General Assembly of Illinois and is now headed to Gov. J.B. Pritzker’s (D) desk.
“This measure addresses the unjust approach many manufacturers take toward paying technicians,” Belt said, according to Illinois State Democrats. “Technicians are often treated unfairly, and this ensures they'll be properly compensated for their hard work and expertise. Manufacturers take advantage of the technicians who are doing the hard work, yet pay them less. We should not allow larger companies to use their positions to demand discounted work.”
Also, under the bill, manufacturers must pay dealerships the same effective labor rate as the dealership receives for customer-pay repairs. Dealerships should receive payments for diagnostic work, repair service, labor and parts. Additionally, “the dealer may submit a request to the manufacturer for warranty labor rate increases a maximum of once per calendar year,” according to the Illinois General Assembly.
House Bill 3940, amending the Motor Vehicle Franchise Act, would also require that manufacturers cannot impose any type of cost recovery fee or surcharges.
It also provides that “the sale of motor vehicles by unlicensed dealers shall be prohibited (rather than should be prevented).”
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