SD 1872 Massachusetts Senate · 193rd Legislature (2023-2024)

An Act reforming auto body labor rates

This bill creates an Auto Body Labor Rate Advisory Board to study labor costs and recommend fair rates for vehicle repairs. The board will be composed of representatives from insurance companies, auto repair shops, vocational schools, consumer advocates, and economists who will conduct annual surveys to gather data on labor rates and related costs. Based on these findings, the bill requires the insurance commissioner to set a minimum hourly labor rate that insurers must pay for repairs at registered shops, with a floor of $55 per hour. This change directly affects auto insurance companies and independent repair shops across Massachusetts by establishing a standardized minimum payment for labor on insured claims.
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