Employee training can cost a lot of money. Not training your
employees can cost even more. In lawsuits, courts and regulatory
agencies sometimes impose after-the-fact training requirements in
addition to large monetary penalties. Consider these actual cases:
Copyright© 2008-2011 Automotive Dealers Network. All rights reserved.
|Jim Radogna is the President of Dealer Compliance
Consultants, Inc., a San Diego, California training and
consulting firm. He has more than 20 years of
broad-based management, training and consulting
experience in the automotive industry.
A dealership faced a wide range of complaints, including failure to disclose
material defects and misrepresenting sales and extended service contract prices,
and was ordered to pay $1.5 million in restitution to victims, plus $300,000 to the
state Department of Consumer Protection. As part of the settlement, the dealer
also agreed to initiate a mandatory education program for all its employees within
60 days of the settlement, instructing employees on state consumer protection
A jury awarded a $14.4 million wrongful death verdict against a dealership
that performed a faulty tire repair and failed to take the tire out of service, leading
to a rollover crash that killed a couple. As a condition of the post-verdict
settlement, the dealer agreed to implement a training program to better train its
technicians about safe tire repair practices to improve consumer safety.
The Equal Employment Opportunity Commission (EEOC), entered into a
$1.5 million settlement of a sex and age discrimination lawsuit with an auto
dealership. Along with the monetary penalty, under a consent decree the
dealership must provide current employees with four hours of EEO training
annually and new hires must receive such training within ten days of employment.
The EEOC reached a $700,000 settlement of a national origin, religion and
racial discrimination lawsuit against another dealership. According to the
Consent Decree resolving the case, the dealership is required to hire a presenter
approved by the EEOC to provide annual training to all of its managers and
supervisory personnel on all aspects of Title VII.
What’s that old expression about closing the barn door after the horses are out?