In July 2021, Governor JB Pritzker signed House Bill 3940, amending the Motor Vehicle Franchise Act to ensure that auto mechanics at Illinois’ car dealerships earn equal pay for equal work.
The bipartisan law, which is also referred to as the Multiplier Act, passed 85-24 in the House and 58-0 in the Senate. It removed a two-tiered compensation system in which certified technicians earned below-market rates for auto repair work that is covered under warranty. Prior to the law’s passage, the difference between warranty rates and customer-paid retail rates negatively impacted the earnings potential of skilled auto mechanics in Illinois, contributing to high turnover and a shortage of qualified technicians at car dealerships. The Multiplier Act aimed to combat this labor shortage by requiring automakers to fully fund warranty repair services at dealerships. It went into effect on January 1, 2022.
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UNIVERSITY OF ILLINOIS URBANA-CHAMPAIGN
