The proposed bill establishes the Auto Body Labor Rate Advisory Board in Massachusetts, which will consist of 14 members from various sectors, including the insurance and auto repair industries, as well as consumer advocacy groups. The board is tasked with conducting surveys to gather data on labor rates and costs from auto body shops and insurers, with the goal of making recommendations for fair labor rates to the Division of Insurance by December 31, 2025. The bill highlights the historical context of auto body labor rates in Massachusetts and the need for a structured approach to address the significant discrepancies between the rates charged by auto body shops and those paid by insurers.

Additionally, the bill introduces a "Variable Rate Solution," allowing collision repair facilities to set their labor rates between a minimum of $63.00 and a maximum of $126.00 per hour, based on the 75th percentile hourly wage for automotive technicians in Massachusetts. It outlines a five-year plan to gradually increase the current labor rate to a target of $121.73 per hour by 2030, ensuring that the rates reflect the actual costs of doing business and attract skilled technicians. The bill also emphasizes the importance of fair compensation for repair shops while addressing concerns from the insurance industry regarding potential impacts on consumer costs and market dynamics. Overall, the bill aims to create a more equitable labor rate structure that benefits all stakeholders involved in the auto body repair industry.

Statutes affected:
Bill Text: 175-113B