What We're Watching | Non-Competes Stealing the Spotlight
Federal Updates
Standard Mileage Rate Increase. Are You Offering It?
Each year the IRS reevaluates the standard mileage rate. In rare cases, a rate change may come twice in one year (like in 2022) to combat stressors like rising inflation and the price of gas.
The 2023 rate of reimbursement comes in at 65.5 cents per mile.
A hike up from the midyear rate, this new number seeks to offset the price of vehicle purchase costs, driving costs, and maintenance costs. All of which have increased over the last year.
Here’s why it matters → Mileage reimbursement can be both a benefit to the employer and a huge perk for the employee. But if you do offer it, there are a few things to know.
First, make sure you are reimbursing at an appropriate rate.
That current rate is 65.5 cents a mile.
If an employee is using their own vehicle for business purposes, and you are not providing reimbursement, the following is important –
It is a good idea for you to know what your employee can take as a write-off versus what they can’t.
Educate yourself first, so you can provide them with accurate information.
This includes resources to help employees track their business mileage so they can deduct it on their taxes.
*Disclaimer, we are not tax accountants, so this is most definitely not professional tax advice.
We are here to give you HR’s perspective on why it’s important for you, your business, and your employees.
Goodbye to Non-Compete Agreements? All Eyes are on These Major Changes.
In a major development this week, the Federal Trade Commission (FTC) announced a brand new proposed rule that would ban non-compete agreements for essentially everyone. That’s right employers, you read that one correctly.
Both paid and unpaid employees, contractors, interns, and more, all fall under the terms of the proposed rule.
It is estimated that banning non-competes which, “suppress wages [and] hampers innovation,” would expand opportunities and increase wages by $300 billion per year.
But for employers, this could mean a major change in how your business runs. The ruling would both prohibit you from entering into new agreements and also require you to rescind existing agreements for current and past employees.
This is one to keep up with as the changes could be many. For a more in-depth look at the proposed rule and its potential effects, read more here.
Here’s why it matters → As an employer, you want to protect your people assets from being used to help a competitor succeed. From an HR standpoint, we get this and we hear you.
But the reality is that the employee is hurt by the effect of non-competes far more often than the employer. This is why the FTC cites benefits for employees as the major reason behind the new ruling.
There will be much more to come as the situation develops. We will keep you up to date on it all, so make sure you’resubscribed to our weekly newsletter so those updates land in your inbox.
For now, we urge you to consider the following when drafting a non-compete:
The length of time of the restrictions set forth.
The geographical restrictions.
Ask – Are the restrictions set forth reasonable expectations?
If you have further questions on anything above or need guidance on compliance and best practices, our team at Boss Consulting HR is here to help. Get in touch.