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March 17, 2020

Coronavirus Legislation: NADA Update and Actions

This information was published by NADA late yesterday. It is a rapidly evolving situation, and we will keep you apprised as the situation changes.


NADA is closely involved with Congress as it considers emergency legislation to respond to the coronavirus. We want to update you on the status of the legislation and on our continued efforts to not only keep dealership employees safe but also to carefully review employer provisions that apply to dealers during this unprecedented time. Legislation is moving very quickly and NADA, as always, will make every effort to protect the best interests of automobile and truck dealers, employees and customers in current and future legislation.

On Friday, the House passed H.R. 6201, the Families First Coronavirus Response Act, by an overwhelming bipartisan 363-40 vote. Here is a comprehensive FAQ developed by Fisher Phillips that addresses paid sick leave and Family and Medical Leave ACT (FMLA) benefits during this national emergency and also briefly summarizes the refundable tax credits for employers, as well as a small-business exemption that attempts to mitigate these costs for businesses.

The House bill is still not final since it requires corrections. The House will need to pass the bill again, likely either today or tomorrow. There is a slim chance for some modifications. NADA is seeking every opportunity to improve the legislation and will reach out as soon as possible if a grassroots campaign can assist in this effort.

NADA is currently working with other business organizations, as well as legal and tax experts, to assess key employer provisions and to provide input to Capitol Hill to advocate for dealers and our employees. We are also working with our network of accountants who represent dealers to obtain additional data on dealership cash flow and liquidity, to assist our advocacy on the Hill and with implementing regulations.

Many Senate Republicans are urging modifications to the House bill to address concerns of the business community, including the need for additional employer flexibility. It must be noted this emergency legislation is on a fast track, with the Senate under extraordinary pressure to pass the bill quickly with few revisions.

Congress has already started work on the next emergency measure, which will focus on economic stimulus measures and industry specific initiatives. The Senate wants to complete this next measure by early April. The Treasury is also discussing other emergency measures such as advances to small businesses for paid sick leave.  

On Thursday, March 19, 1pm-2pm, NADA will conduct a webinar, Running a Dealership During a Pandemic: Legal Issues and Federal Mandates for all NADA members, directors and ATAEs on legal issues specific to dealerships and the COVID-19 pandemic. It will include an overview of new legislation with dealership impacts and will provide time for participants to ask questions. You should be receiving an invitation to the join the webinar soon. Appropriate dealership staff, outside counsel and CPAs are welcome to participate with a member log-in.

NADA will continue to provide updates on these critical measures as they become available.

NADA Legislative Affairs and NADA Regulatory Affairs