ASA Weighs in on Mississippi Labor Rate Bill

The Automotive Service Association (ASA) has weighed in on a bill introduced in Mississippi that would prohibit collision repair facilities from charging a labor rate higher than the national average.

“This bill is an obvious attempt by the insurance industry to suppress labor rates and reduce their average severity,” said Dan Risley, ASA president/executive director. “Attempting to classify all collision shops as equal demonstrates a lack of understanding of the collision repair industry and the cost of running an actual business.”

Mississippi Rep. Videt Carmichael, R-33, introduced House Bill 2187, which would prohibit motor vehicle repair shops from charging labor rates above the national average for like-kind work. The bill also stipulates that shops that seek to charge above the average must have the express approval of the commissioner of insurance.

ASA opposes H.B. 2187 and is asking Mississippi collision shops to go to ASA’s legislative website, www.TakingTheHill.com, and send a letter to their state legislators in opposition to the legislation.

For additional information about ASA, visit www.ASAshop.org.