Original Employee Handbook

Continental Cars, Inc

Continental Cars, Inc. is a Texas Corporation incorporated in August of 1966. Its major stockholders are Harry Peterson and Dab Cauley.
The assets of the corporation were purchased from another automobile corporation whose history of retailing imported sports cars dates back to 1957.

Highland Toyota was initially a part of Continental Cars, but due to continuing increases in the sale and service of Toyota vehicles, it became necessary for Toyota to have its own physical plant complete with new car show room, parts, and service departments. In March of 1971, Highland Toyota became an operating subsidiary of Continental Cars and in 1972 a separate Texas Corporation. In 1973 Highland Toyota added B.M.W. and Jensen Healey automobiles to diversify its product line.

Introduction – Preface
No matter how successful a business may be, there is always room for improvement. The people that make up the Team which runs the business can insure success. If each person feels that he is a part of that Team, he will exert his best efforts. Knowledge then, of his job, his benefits, and his Company’s policies, brings into focus his place in the organization, and he becomes a part of the Team Effort.
This handbook is designed to facilitate this concept.

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Welcome to the Continental Cars and Highland Toyota Automobile Complex. We consider it a real privilege to number you as one of the members of the growing Continental/Highland family.
Your employment with us represents a real opportunity for you through personal advancement in skills and income.

We are quite proud of our employees, because we are proud of our Company, and in the final analysis, the employees are the Company.

Continental Cars, Inc. is a Texas Corporation incorporated in August of 1966. Its major stockholders are Harry Peterson and Dab Cauley.

The assets of the corporation were purchased from another automobile corporation whose history of retailing imported sports cars dates back to 1957.

Highland Toyota was initially a part of Continental Cars, but due to continuing increases in the sale and service of Toyota vehicles, it became necessary for Toyota to have its own physical plant complete with new car show room, parts, and service departments. In March of 1971, Highland Toyota became an operating subsidiary of Continental Cars and in 1972 a separate Texas Corporation. In 1973 Highland Toyota added B.M.W. and Jensen Healey automobiles to diversify its product line.

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We have grown from the original nine employees with sales of under $800,000.00 per year to our present position where in 1974 we have 65 employees with gross sales in excess of $5,000,000.00.
Our major goals are as follows:

  • Build a profitable business that we can all be proud of.
  • Develop a lasting reputation for rapid and quality service, fair prices, integrity of the highest level, and for being a friendly, honest place to do business.
  • Create working conditions that are healthy, pleasant, and will allow the employees to take full advantage of their own ability, training, and personal ambition.

Our primary business at Continental Cars and Highland Toyota is the sale and servicing of sports cars, luxury and economy sedans, and other recreational vehicles. This includes new and used vehicles sales, mechanical service, parts retail, parts wholesale, Michelin Tires, and paint and body shop.

As an employee, we will expect you to conduct yourself in a fashion that you and the Company can both be proud of. You will want to supports all the various departments as they will also be supporting you. You will always remember that the Company is a retail establishment dealing with the public, and the public will be constantly judging the Company by the appearance, language, and conduct of its employees.

Peyton “Dab” Cauley

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It has always been our desire to minimize “Rules and Regulations”; but there are, nevertheless, a number of things which we all must understand – a few standards of relationships and procedures – which are very important for the betterment of our lives and work together, and the basis for building towards our objective — “SATISFIED CUSTOMERS”
Please Read this Booklet Carefully and Keep it for Future Reference.


Your future and the future of the Company are one and the same. Your future and our future depend on how well we – together – do our job.

In the successful performance of your job, “know-how” plays an important part. Yet of equal importance is your desire to do your job well.

Do not hesitate to ask your supervisor or department manager for assistance and guidance in helping you improve yourself.

Management’s door is always open to answer your questions or discuss any problems you may have concerning your work, your progress, and your future.


Your Company has a Profit Sharing Plan (details of which are provided when an employee becomes eligible for participation) into which it contributes annually a portion of the net profits for the year. This is to provide funds for your retirement. In addition, your Company contributes annually for Employee’s Social Security and Unemployment Insurance. Workmen’s Compensation Insurance is another benefit, as well as Group Life Insurance for which your Company pays part of the premium. You are paid for 5 National Holidays and your Company pays a large portion of uniform rentals and laundry service. Our Health Insurance plan, available to full-time employees on a payroll deduction basis, is one of the finest Health and Hospital Plans in the United States.


New Employees –

All new employees are selected from written applications. For the first 60 days of employment, the new employee is on a probationary basis. Such practice allows both employee and employer sufficient time to determine the advisability of permanent employment.

Regular Employees –

Upon completion of the 60 days of continuous employment, an employee is classified as a regular employee.

An employee’s continuous employment stops when:

  • The employee quits.
  • The employee is discharged.
  • The employee attains age 65.
  • The employee is laid off or is given a leave of absence in excess of 30 days. An exception is military or pregnancy leave.

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Salaries are a confidential agreement between the Company and the employee, and are not to be discussed with anyone except department heads or the general manager. Periodic salary and wage adjustments will be made on the basis of merit, change in job classification, and change in the cost of living. By no means is this to be construed to mean that raises will follow a regimented time plan. Adjustments are proposed by the department manager as he deems appropriate.

Due to the nature of the automobile business, salaries are computed by three methods:

  • Flat Rate
  • Salary (on hourly, weekly, or monthly basis)
  • Salary and Commission


Friday at 5:30 p.m. is the Pay Day for most employees whose salary is computed on a flat rate or on an hourly or weekly basis. This is for the pay period from Thursday through Wednesday. The pay period for salesmen and other employees is semi-monthly on the 1st and the 16th. Other commissions are paid after the monthly manager’s meeting.


In certain departments, time cards and time records are necessary in order to provide for efficient shop control, accurate payroll information, and verification that an employee was on the job in case of an accident. All employees paid by the hour and/or flat rate hour are required to punch in and out on the company time clock. Your supervisor will inform you of the details of this time control.


  • Service, Parts, and Body Shop | 7:30 am – 5:30 pm
  • New and Used Car Sales | 8:00 am – 7:00 pm
  • Office | 8:00 am – 5:30 pm


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A 5 day work week is standard for all departments except for new and used car sales which works 6 days. Strict adherence to the working hours is expected. A one hour lunch break is provided and should be taken at the time most preferred by the department manager so that he can schedule work most efficiently. Occasionally it is essential that employees run personal errands during normal working hours. Anyone who wishes to do so should notify his department head before leaving.


The cleanliness of your person, your clothing, your equipment, and your work space is of great importance.

Your Company takes great pride in doing a high grade of precision work, sells high quality products, and operates in one of the finest facilities in the business. Our customers have the right to expect us to keep ourselves clean and our whole place of business clean.


All employees are required to keep their work areas clean and orderly whether it be an office, desk, stall, lube rack, wash rack, etc. All electrical equipment should be cut off when no longer needed. On Fridays our shop is cleaned by an outside company and all mechanics stalls are expected to be in order. The alley behind our building should be kept as neat and orderly as possible. All trash should be thrown away not stored in the alley.


Regular attendance at work is essential. If an employee desires for any reason to be absent from work, he should secure permission from his department manager well in advance of the proposed absence. In the event of sickness or other unexpected absence, the department manager should be notified as soon as possible. Sick pay, if warranted, will be computed as follows:

  • Hourly – at regular hourly rate up to 40 hours per week.
  • Flat Rate – to weekly guarantee if not earned while at work.
  • Salaried – At regular rates

In the event of illness extending beyond ten (10) days, we have insurance in the form of a wage continuation plan that pays the employee 50% of his average weekly earnings up to a maximum of two years or until he returns to work.

When it becomes necessary for an employee to use one of the above absences, the absence may be charged to annual leave with pay. If annual leave is not available, absence may be granted without pay.

There are no provisions for authorized sick leave nor are there any authorized number of sick days a year authorized any employee. If an employee is in the hospital or under a doctor’s care, consideration may be given to some compensation.


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It is possible that situations may arise, where, in the judgment of the employer, it may be advisable to grant an employee a temporary leave of absence.

Accordingly, there are three types of absences based on the reasons for which leaves are granted. The three classes are:

  1. Disability
  2. Military
  3. Emergency


An employee who has been continuously employed for 1 year is entitled to one week’s vacation. Employees who have been continuously employed for 2 years or more are entitled to 2 weeks vacation.

For the purpose of clarification, it should be pointed out that a year or more of continuous employment begins at the starting date of the employee and should not be confused with the calendar year. Vacations do not accrue for a portion of an employment year or from year to year. Vacations must be taken in the year earned.

While no vacation will be allowed after discharge for a cause, an employee who is eligible for vacation and who is laid off permanently will receive vacation pay.

Vacation pay will be based upon an employee’s hourly, weekly, or monthly salary, guarantee, or an established amount. Salesmen’s vacation will be an established amount of $210.00 per week.

Since vacation schedules must be prepared ahead of time in order to take advantage of your seniority, you must make firm your vacation timing with your department manager well in advance. The timing of vacation is subject to the efficient operation of the department in which the employee works, and the approval of the department supervisor.


A full time employee will be eligible for pay for 5 National Holidays when these Holidays fall on regular working days,including Saturday, and if the employee was at work on the work day before and the work day after the Holiday, unless, of course, he was on vacation. These National Holidays are established by Congress and supplemented by TADA. National Holidays will be published when known and approved.

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When necessary, the Company pays for travel and related expenses incurred by an employee in attending training schools and other educational programs that are company sponsored to aid an employee in doing his job and maintaining his technical proficiency. The employee is also paid either his guarantee or his regular hourly rate for attending such schools.


There are certain deductions that every employer is required by law to make from the salary of his employees. It is recommended that every employee understand these deductions.

Accordingly, there are three types of absences based on the reasons for which leaves are granted. The three classes are:

  • Social Security Deductions
    In accordance with the Social Security law, a government-determined percentage is deducted from your salary each Pay Day. This amount, together with an equal amount paid by the Company goes into a Government Fund, the purpose of which is to provide a monthly pension at age 65.
  • Income Tax Deductions
    There is another mandatory deduction from your salary which is withheld for your Federal Income Tax. The amount depends upon the size of your salary and the number of dependents you declare.
  • Other Deductions Additional deduction from your salary may be made for:
    • Health Insurance
    • Group Life Insurance
    • Uniform Rental
    • Personal Charge Accounts

Without exception the speed limit on Company premises is 5 m.p.h.


Mechanics are required to furnish all of their own hand tools and should respect one another’s private property and ask before borrowing. Special and power tools are supplied by the Company at great expense, as they are essential to properly diagnose problems and make timely repairs. Down time on this equipment can be minimized by proper use and maintenance. Service personnel should acquaint themselves as to the correct use of all such equipment.

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It is required that all line and salaried mechanics become licensed state vehicle inspectors within the first 90 days of employment. Every effort must be expended to receive this license, misuse of which can lead to civil prosecution by the State of Texas.


An accident can be a serious matter to You, Your Family, and the Company. It is your duty to know the Safety Rules and Regulations applying to the job on which you are working. If you are a careless worker, you are a menace both to yourself and to your fellow employees. Willful violation of Safety Rules results in disciplinary action. Also, all accidents must be reported at once to the Accounting Office so that applicable forms can be filled out to file claims under our Workmen’s Compensation Insurance.


Any car damage on company property or while in our custody should be reported to the appropriate department manager as soon as possible after the incident.


Employees are permitted to charge certain goods and services purchased through or from the Company. These charges must be approved by one’s department manager and the general manager or office manager. Payment for these charges will be withheld from the next payroll check.

Automobile repairs to employees’ cars is done at internal labor rates, and parts are available at cost plus 15%.


All full time employees are entitled to have their own cars serviced at the established employees’ discount. A Repair Order will be written and the job handled the same as any customer’s car. (Customers’ cars naturally will have priority.)

A mechanic desiring to work on his own car on Saturday or after normal working hours, may do to with the approval of the service manager.

While the company does not wish to place a hardship on anyone, employees working on their cars or on their friends’ While the company does not wish to place a hardship on anyone, employees working on their cars or on their friends’ cars on Sundays and Holidays cannot be permitted. The hazards of fire and accidents is too great, and particularly at these times when are whole staff is not on duty.

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It is the desire of your Company to have all service and parts personnel uniformly dressed. New employees are requested to inquire of their supervisor at once about the arrangement for the availability of uniforms and laundry service. The company pays for 50% of the cost of uniforms.


Life Insurance

All full time employees are eligible for Group Life Insurance on a payroll deduction basis. There is no medical examination and you may pick your own beneficiary. This term life insurance is carried with Blue Cross-Blue Shield Insurance Company. Your company pays 50% of the premium – your cost per $1,000 of life insurance is very small. If you are interested in Life Insurance, and you should be, contact the Accounting Office.

Health Insurance Plan

Medical and hospital care insurance is available to all full time employees on a payroll deduction basis. New employees should contact the payroll clerk in order to fill out all applicable forms.

The insurance, after making application for it, can become effective on the first day of the first month after which the employee has completed 30 days of employment.

Application can be made before becoming eligible.


The use of Company cars for personal purposes, unfortunately, cannot be permitted, since our insurance applies only when the car is used in a normal pursuit of business. Drivers of Company vehicles are identified with the Company. Careful, courteous driving is mandatory.


Coffee breaks are a recognized part of the business scene, but they must be controlled so that the customer does not get the idea that they are more important than he is.

Coffee breaks are limited to 15 minutes in the morning and 15 minutes in the afternoon.


The hazard of fire and explosion in this business is always a possibility. To protect YOUR LIFE and YOUR JOB requires your constant, intelligent cooperation.

Gasoline should NEVER be kept in the building in an open container. If it is necessary to keep gasoline in the building, it must be in an underwriter’s approved contained, and less than a gallon in quantity.

Gasoline or thinner should NEVER be used for any type of cleaning.

A car with a leaking gasoline tank or gasoline line MUST BE REMOVED from the building AT ONCE.Customers smoking near the gasoline pumps while the attendant is dispensing gasoline MUST NOT be permitted. It is up to the attendant to diplomatically point out the danger of smoking near gasoline.

Overfilling a gasoline tank is dangerous since expansion may cause spilling.


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Solicitors of any kind are not allowed on company property and should be reported immediately to one’s supervisor.


Space for parking cars is always a problem. We must not overlook the fact that space must be kept available, either on our own lots or on the streets for our customers’ cars.

In view of the parking problems, it is necessary to ask those employees who drive to work not to park on the Company lots or too close to the building. Parking space is provided across the street at Sage. Let’s save space for our customers’ cars. Employees’ old “hobby” vehicles, boats, etc. are not to be left on the premises for an extended period of time. If necessary, they will be removed at the employee’s expense.


Customers judge us by our behavior – our attitude when we wait on them, our manner, and our courtesies. Understandably, we cannot build customer confidence if we are impolite, discourteous, and have an attitude of doing the customer a favor. Likewise, we must not be guilty of loud talking, boisterous actions, and unbecoming conduct.

Let’s be careful about our “loose talk”? unfriendly, unkind remarks about our customers or their cars can never create Good Will, and Good Will is the basis of the success of a Company and its employees.

Reporting for work, or attempting to report for work under the influence of liquor or drugs or having intoxicating liquor or drugs in one’s possession on Company property is not tolerated.

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We’re all working together – we’re all on the same team. Help your fellow employee. Run interference for him, if necessary, for in so doing you are working as a team and “teamwork” accomplishes results for you, your fellow worker, and our customers.


Our intercommunication system is intended to save time and increase our efficiency. Let’s not expose our customers to intercommunication conversations that are unfriendly, profane, or “cute”. Such conversations are extremely offensive. We cannot afford to tolerate them.


Our telephone system is, of course, primarily intended for Company business. Due to the fact that our trunk lines must be kept open for customers’ incoming calls, we ask that employees restrict their personal use of the phone to a minimum.

Since many of our contacts with our customers are made over the telephone, let’s watch our telephone manners. Be humble, courteous, cheerful, and helpful at all times.


For Social Security and Income Tax purposes, you should tell our payroll clerk if marriage, divorce, or death changes your family status, or when there is a change in the number of dependents.

Our office should always have your current address and phone number.


In cases of emergency the Company will make a reasonable advance of pay in order to assist an employee, however, for obvious reasons, advances are discouraged.


All injuries, no matter how trivial, must be reported promptly to your supervisor and the Accounting Office. This ruling is for your protection. Except in cases of emergency, please check with your supervisor before reporting to a doctor or a hospital. The supervisor, in turn, willnotify the office manager at once of the injury.


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Periodic departmental and organizational meetings make possible a better understanding and a closer relationship between the Company and its employees. In addition, these meetings will be helpful in the promotion of business and the training of employees.


Any parts removed from cars on Company premises become the property of the Company. Any used part you wish to purchase must be cleared through the department manager and with permission it must be removed from Company property.


Do not discuss Company business (i.e. give estimates, etc.) with customers unless asked to do so by your department manager or his assistants.

Do not remove repair orders from the service office unless they are properly signed out by a service writer. Any repair orders found laying around should be turned in to the departments from which it originated.

Under no circumstances should federally required safety devices be removed, disconnected, or otherwise impaired without special permission from the service manager.


We can certainly trust each other as our customers trust us. Whatever you find, whomever it belongs to, turn it in to your supervisor immediately. All employees are bonded by the U.S. Fidelity and Guaranty Company. There are no forms to fill our and there is no charge to the employee.

Cash shortages, missing articles from Company or customers’ cars, mysterious disappearance of property, will be investigated by the local attorneys who represent the Bonding Company.


The guy you call your boss was chosen because of his experience and his ability. He is your friend. Help him to help you make a success of your job.

Always feel free to discuss with him any suggestions you have regarding your job; ways and means whereby operations can be improved, new methods established, or existing methods revised. By such suggestions you may improve your department’s efficiency and as a result improve yourself.

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Each of us have opportunities to help maintain customer Good Will. It’s always the little things that make friends, so when you have an opportunity to do a small favor or some minor fixing on a customer’s car, which takes only a moment, and for which we need not make a charge – jump at the chance. “It’s another way of saying ‘Thank you!'”

If at any time you become aware of a customer’s complaint, bring it to the attention of your department manager. This will enable us to bring the complaint to a satisfactory conclusion.

Always remember this about unsatisfied complaints: the bigger they are the harder we fall.


    Loyal Customers Provide the One and Only Source of our Pay Checks!

Let’s Keep Every Owner a Loyal Customer!


It is imperative that each repair order include the correct name, address, and phone number of our customers. Also the repair order must be signed by the customer after he explains the services he wants performed. For cars towed in we should get the customer to sign the repair order at his convenience, but it must be signed .


We will wait on our customers promptly, courteously, and efficiently.

We will roadtest and inspect their cars and the work we recommend will only be that which the car actually needs.

We will make repairs according to factory approved procedures and will only do the work authorized by our customers.

We will quote prices in advance and guarantee our repair work.

We will carefully handle each customer’s car and protect it with fender and seat covers and remove any greasy hand prints or oil stains. A good job can be ruined by returning a dirty car.

We will have each car ready on time, or notify the customer well in advance.

We will inspect and road test completed work if necessary in order to know that the trouble has been corrected.

We will thank our customers for coming in and let them know we appreciated their business.

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Our heating system and air conditioning system are controlled by a delicate arrangement of thermostats. Employees are asked not to change the setting of any thermostats.

Tools and movable equipment are not to be loaned or taken off the premises.

The wasteful use of wiping rags can become a prohibitive expense – yet their necessary use is sincerely encouraged.

All employees will be considered on a seniority basis with other factors taken into consideration. All factors being equal, seniority will apply.

Nothing is to be purchased from other suppliers by anyone, any time, without the approval of the supervisor who is to secure a purchase order from the cashier.