Massachusetts lawmakers are considering two bills – S.B. 122 and H.B. 1043 – that would regulate the minimum labor rates for body, paint, unibody/frame and mechanical repair shops.
The Alliance of Automotive Service Providers of Massachusetts and Rhode Island (AASP-MA/RI) supports the legislation. The association says that for over a decade, Massachusetts collision shops have received the lowest labor rates in the country, despite operating in one of the highest cost states. As of Sept. 30, 2009, the national average hourly labor rate for repairs was $45.02, while Massachusetts labor rates averaged $35.75 per hour. The association noted that only one other state, Tennessee, charges less than $40 per hour on average ($39.69).
The legislation proposes that an 11-member labor rate commission be created consisting of: the undersecretary of Consumer Affairs and Business Regulation as chairperson, two Senate members, two House members, three representatives of the auto insurance industry appointed by the Auto Insurance Bureau, and three representatives of the collision industry appointed by the AASP.
The commission would determine appropriate minimum hourly labor rates based on average national labor rates and other statistics. The commission also would create qualifications to designate three levels of shops – “A,” “B” and “C” – with an application and inspection process for each classification.
Labor rates paid would be based on shop classifications as follows:
• Level “A” shops must be paid an amount not less than 100 percent of the indexed hourly rate in force.
• Level “B” shops must be paid an amount not less than 90 percent of the indexed hourly rate in force.
• Level “C” shops must be paid a labor rate that’s fair and reasonable.
More information:
• AASP-MA/RI provides bill summaries and labor rate information at PasstheLaborRateBill.org.
