As you may know, when a vehicle needs applicable repairs under warranty, the customer typically pays nothing for the service. The manufacturer pays the dealership for the warranty repair using a reimbursement formula based on that manufacturers personal labor time guide. Technicians, often on a "flat rate" pay plan, are paid a fixed amount of time for the repair, regardless of how long it actually takes to complete. The times allotted for warranty repairs by manufacturers are often less than the realistic time required to complete the job, and they can be lower than industry standard flat rate times provided by companies like Alldata and Mitchell. This means technicians are often underpaid for their time and effort on warranty work compared to customer-paid repairs. This is a call to action for everyone who believes in fair pay for hard work. We need your support to back a bill that would mandate car manufacturers to provide fair warranty pay to dealership technicians and parts departments. This bill will not place any financial strain on customers, as the cost would be borne entirely by car manufacturers.

In Illinois, house bill 3940 has already set a precedent by implementing this change effectively from January 1st, 2022. The impact? A significant growth of $302 million in Illinois' economy (source: iamlocal313.com article dated March 19th, 2024).

We believe that similar legislation can bring about positive economic growth and fairness in our state too. Stand with us today for fairness and economic growth. Please sign this petition and share it with others who believe in our cause.

This Facebook page we've created has links to information regarding Illinois passed house bill 3940. https://www.facebook.com/profile.php?id=61558760825483

Illinois HB3940
Synopsis As Introduced
Amends the Motor Vehicle Franchise Act. Provides that the sale of motor vehicles by unlicensed dealers shall be prohibited (rather than should be prevented). Changes the manner in which dealers are reimbursed by manufacturers. Provides that manufacturers must pay a dealer no less than the amount a retail customer pays the dealer for the same services. Authorizes the use of agreed upon time guides. Applies to warranty work and factory recalls. Establishes a manner of determining effective labor rates.
Source; https://www.ilga.gov/legislation/BillStatus.asp?GA=102&DocTypeID=HB&DocNum=3940&GAID=16&SessionID=110&LegID=133028&fbclid=IwZXh0bgNhZW0CMTAAAR1XgHTgFy-QKOS7Y9XbtD_HR_J7ZMbwLjwFpEuekDPIdyxF0LH0JW2PnWU_aem_ARfPYR8569E77ApWlRStJrxodfWtbEoO-G4yP6I9I_-P7nNrRb06MMl20yHuKWUqW_AEcLhEv0B7TfNLLuTmrpBX

"While the customer benefits from free repairs under warranty, technicians performing these repairs may face challenges due to the flat-rate pay system and manufacturer-set labor times that don't always reflect the actual time and effort involved." (Source: Universal Technical Institute)

. This means that dealerships are not receiving compensation reflecting the amount of time spent on warranty work, and subsequently, technicians are being underpaid for their labor. Legislative change is necessary to ensure that neither dealerships nor technicians are losing time and money on warranty work.
Source; https://mech701.org/wp-content/uploads/2021/03/HB3940-Warranty-Work-Reimbursement-Bill-Summary.pdf?fbclid=IwZXh0bgNhZW0CMTAAAR3UyWsQZ1yfd0wkPkOvk15jL5oEQMrQVQt5HSgaCApMWWMUNhatyZerBRo_aem_ARcjaufzvbtpmCFH3e1JYkwviYr3GqQ3O7JEsRkzXKIYBP1NfhL129HXiJ3nkMonktDlTPPezyLYC--o5WuFV0Yb

By bringing pay for warranty work up to competitive local area standards, the Multiplier Act has generated positive economic impacts in Illinois. The Act:
• Boosts worker earnings at Illinois’ auto dealers by between 3 percent and 7 percent relative to similar workers, resulting in $143 million annually for skilled mechanics in middle-class jobs that cannot be outsourced.
• Reduces employee turnover at Illinois’ auto dealers by 9 percent, helping to combat labor shortages.
• Increases hours worked per week at auto dealers by as much as 6 percent compared to other private industry workers in Illinois.
• Grows the state’s economy by $302 million, a $2.11 economic multiplier per dollar in wage gains.
• Generates $21 million in state tax revenues and $21 million in local tax revenues every year.
• Promotes safety and reliability by ensuring that skilled mechanics can devote the proper time needed to correctly diagnose and fix vehicle problems.
Source; https://iamlocal313.com/news/il-auto-repair-reform-law-hb-3940-has-been-good-for-dealers-technicians-drivers-and-taxpayers/?fbclid=IwZXh0bgNhZW0CMTAAAR1RYFF4oF3X9SMvhBFa5axKl0Aeg-KAJZxXV7IKbi7iL09EpY6nLp-lVkY_aem_ARfqzEu-h3DHBfjP0cr2HPvc6OkhBoptORBfx651puIYfhg3TuaDiWcJZPAzyQoaVtoS9q1PExeav69FgsB7KyNF
Letter to the Governor of the State of Illinois on House Bill 3940
Source; https://www.chicagolandchamber.org/statements-releases/letter-to-the-governor-of-the-state-of-illinois-on-house-bill-3940/?fbclid=IwZXh0bgNhZW0CMTAAAR1iBkeCLTWF3kS6py7jX0XxZ_nAVlDPIiQnmztCcwZ-ghTG2dqikJSFXBg_aem_ARd6kD7owjJtNlsxVtpDMpPffjeJqRJMt0xH4Iw_zW9lS4tGe3yXztqQge3t9iRu8Fr89tfLuX0Uwf1yiGyT4JZX