Massachusetts provides the lowest auto body labor rates of any state in the country, not having been significantly increased since 1998. A study by National AutoBody Research Organization of auto body labor rates in Massachusetts found that for the approximately 2,300 repairs processed through insurance claims, $40/hour was the most common labor rate paid, and most of the time the rate paid by insurers was $36-$42/hour. This number is not up to modern standards.

This bill aims to address this issue by establishing the Auto Body Labor Rate Advisory Board to create, implement, and oversee an annual survey regarding auto body labor rates – in addition to requiring the Commissioner of Insurance to set the minimum hourly labor rate of $55.

Auto insurers’ refusal to pay a labor rate of more than $40 over the past 30 years in Massachusetts has caused real pain in the collision repair industry. Massachusetts auto body shops are struggling to find employees, and customers are struggling to find places to repair their vehicles. If passed, this legislation will help address these issues.