IRS Mileage Change

Earlier this month, the IRS announced that mileage rates for the last half of 2022 would be increasing $0.04 per mile, in response to the rising costs of fuel. Businesses should update their expense forms and software prior to Friday, July 1, 2022, when the new rates take effect.

The standard mileage for business travel will increase to $0.625, and the rate for eligible medical or moving expenses will increase to $0.22. The rate for mileage incurred during service to a charitable organization ($0.14) is unchanged, as it’s determined by a different statute. Most light-duty vehicles get around 25 miles to the gallon, so at $0.04 per mile, reimbursement is roughly one dollar per gallon.

The IRs usually sets rates in the fall for the coming tax year. Mid-year changes are fairly rare, and we haven’t seen one since 2011. We’ll keep you updated toward the end of this year when rates are updated again for the 2023 tax year.

ADA Lawsuits Increase

ADA lawsuits have been on the rise for the last several years, and they’re showing no sign of slowing down. The Americans with Disabilities Act (ADA) was intended to make things easier for people with disabilities. Sometimes it’s produced other outcomes, like disabled candidates getting fewer offers because employers are worried that the accommodations will be too difficult or expensive to meet.

Typically, they aren’t – and remember, the requests have to be “reasonable.” While that’s a subjective term, the likelihood of a lawsuit is lower if you’re making an effort to work with the employee. Many of the more recent ADA lawsuit examples making their rounds revolve around mental health. ADA does protect those with mental illnesses or conditions that can limit one or more life activity. A popular reference is that of an employee who told his CEO that he had been diagnosed with severe depression and his doctor recommended he take three weeks off. The CEO told him to “take as much time as he needed,” but when the employee returned to work with a physician’s release - that same CEO said the employee couldn’t be trusted to do his job, and fired him. EEOC charged the company with violating the ADA, requiring the employer to pay $250,000 to their former employee. It’s important to train your HR staff and leadership on how to recognize a potential ADA issue, but they don’t necessarily need to be the ones to get it to the finish line. Don’t hesitate to involve an employment attorney with your company’s ADA issues. It’s usually less expensive to prevent a mess than it is to get out of one. If you find yourself questioning how to handle an ADA accommodation, don’t hesitate to reach out to our HR team at (440) 249-5260.

In other ADA news, there’s a new focus on AI software used for applicant tracking or other software that may factor into employment decision making. This is something to discuss with your developers, but make sure your algorithms aren’t resulting in prohibited medical inquiries and your AI is only assessing skill during the recruitment process.

FLSA

Ohio Senate Bill 47 was recently signed into law by Gov. DeWine and will take effect on July 6, 2022. This will clarify employers’ obligations in regards to overtime pay. The bill does do some good for Ohio employers, but could also present some new unanswered questions. Our friends at Frantz Ward summed it up quite nicely!

EEOC

If you’re reading this, it’s after June 22 – so we really, really hope you’ve already submitted your EEO1 report. EEOC’s last statement noted that no reports would be accepted past 6/22/22 from companies required to submit (all employers over 100 employees, federal contractors over 50 employees). Hypothetically, let’s say you didn’t submit before the deadline. What happens now? It’s unlikely that anyone will face jail time, but it’s…complicated.