News and Updates
Month: June 2022
June 2022 Legal Update: ADA, IRS, EEOC and FLSA
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
2023 Program Enrollment is Live!
It seems far away (and it is), but enrollment for 2023-2024 Ohio BWC savings programs has already started. We’ve had some other blogs that helped educate employers on how to choose the right TPA, but here are some additional things to be on the lookout for during “open season.” • Your current TPA will send your renewal for 2023-24 very soon, if they haven’t already. This is usually done in the hopes that you’ll go ahead and process it just to get it off your desk. There’s nothing wrong with taking your time and doing your research. If you send the renewal back to them in July 2022, you’re stuck with them through June 30, 2024. • There are some sneaky marketing pieces out there from our competitors. We’ve seen mailers that say, “We value your continued business – your renewal is enclosed!” This would be great if you were actually their client. If there’s a new decision maker, or this ends up going straight to Accounts Payable, now you have a new TPA that you didn’t ask for. • Are you being provided with program options - or being re-enrolled in Group Rating every year, with the assumption that your TPA would tell you if it wasn’t the most advantageous? Would Group Retro save you more money, or even an option outside of BWC? What other discount programs can you stack with the program you plan on
Ohio BWC Has Lost Nearly $3 Billion This Year
We’ve been keeping you updated on Ohio BWC’s net position, and you may have read last month that they had nearly $1 billion in net investment losses recently. That sounds bad, but it actually gets worse. Throughout June they’ve lost an additional $400 million, bringing their total losses since January 2022 to nearly $3 billion dollars. As a reference point, that’s roughly two full years of employer premiums down the tubes. Let’s remember that BWC chose not to pay out 2018 and 2019 Group Retro refunds, which would have been a fraction of the money lost. While everyone knows that the market is unpredictable right now, it seems like that $395 million owed to Group Retro participants would have been better off in the hands of the employers who earned it. If you have questions about your 2018 and 2019 Group Retro refunds, don’t hesitate to contact us at Spooner – even if you’re not a Spooner client or weren’t during those policy
