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OFFICIAL PUBLICATION OF THE GEORGIA AUTOMOBILE DEALERS ASSOCIATION

Pub. 3 2024-2025 Issue 2

Washington Is Recalculating — Are You Still on Course?

As your dealership adapts to the latest automotive trends, be prepared — employment law is also getting a full system upgrade. Recent legal detours and regulatory U-turns are rewriting how employment rules are created, enforced and challenged. So, before you change lanes or slam the brakes, here’s what’s happening in D.C., and what it means for Georgia dealerships.

Courts Take the Wheel: In Loper Bright v. Raimondo, the U.S. Supreme Court scrapped the Chevron doctrine, which had required courts to defer to federal agency interpretations of ambiguous laws. Now, courts decide for themselves whether agency rules cross the legal line. This shift is already impacting agency actions, including the DOL’s new overtime rule and the FTC’s noncompete ban, both of which have been blocked. EEOC guidance on pregnancy and harassment may be next in line.

New Drivers, New Directions: New agency leadership is shifting focus. Many Biden-era initiatives are being reversed or abandoned. For dealerships, this means less aggressive enforcement and more emphasis on compliance support. The DOL is expected to withdraw its complex independent contractor rule and the FTC’s proposed noncompete ban may fade. OSHA, too, is likely to hit pause on rules related to emergency response, heat injury and injury reporting, all of which could have affected service operations.

The NLRB Slows to a Crawl: With just two of five seats filled, the National Labor Relations Board can’t fully function. That stalls several union-friendly policies, including memos on joint employment, non-disparagement clauses and stay-or-pay provisions. Dealerships may find more room to enforce employment standards without stepping into legal gray areas.

Pregnancy Rules Still Have the Right of Way: The Pregnant Workers Fairness Act remains in effect and is broadly applied. Employers must accommodate pregnancy-related limitations — including schedule changes, breaks, remote work or light duty — often without requiring documentation. The law applies to all roles, from showroom to service bay, and even allows temporary suspension of essential functions.

I-9 Compliance in the Spotlight: The Department of Homeland Security has ramped up I-9 audits. Dealerships should perform internal audits now to stay ahead. Meanwhile, cutbacks to visa programs like the H-1B may affect operations that rely on specialized or multilingual staff.

Stay in Your Lane — But Keep Moving: While federal priorities are shifting, most legal obligations haven’t changed. State laws still apply, and litigation risks remain. Whether your dealership needs a compliance tune-up or a fresh route forward, your Fisher Phillips team is here to help. 

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