Other Federal Agency Updates

Discussion

IMPORTANT! Mid-Year IRS Mileage Rate Increase in Effect

On July 13, 2026, the IRS announced a mid-year mileage rate increase. Effective as of July 1, 2026, the IRS mileage rate increased to $0.76 per mile for business purposes, including employee travel reimbursement. It also increased the rate when driving for medical and moving purposes to $0.235. The change applies to mileage allowances that are paid both (1) to an employee on or after July 1, 2026, and (2) for transportation expenses paid or incurred by the employee on or after July 1, 2026. The rate of $0.14 for driving for charitable organizations remains the same. Employers using the standard IRS mileage rate should adjust expense reimbursement calculations accordingly.

DOJ Sues Private Employer Over USERRA Violation

On June 18, 2026, in Opara v. UV Memory Care, LLC, the Department of Justice (DOJ) initiated a lawsuit against an assisted-living facility after the facility repeatedly stated in writing, first in a demotion letter and again in a submission to the Texas Workforce Commission, that an employee’s National Guard obligations were the reason she was demoted and later terminated when she refused to accept the demotion. The case settled the same day via consent decree, requiring a $15,000 payment alongside extensive remedial commitments, including revised military leave policies, a designated Uniformed Services Employment and Reemployment Rights Act (USERRA) compliance officer, mandatory annual training, and nearly two years of DOJ monitoring. Because the employer’s own demotion letter and its statement to the state unemployment agency used nearly identical language attributing the decision to the employee’s military service, the DOJ did not need to rely on typical circumstantial evidence to establish that military service was a motivating factor. The case serves as a reminder that, although the DOJ rarely litigates USERRA claims against private employers, it will do so when an employer’s own contemporaneous records establish military service as a motivating factor, and that responses to unemployment claims can carry the same evidentiary weight as formal position statements.

Disability Self-Identification Form Approved for Continued Use

On July 16, 2026, the Office of Management and Budget (OMB) renewed approval of Form CC-305, the form federal contractors covered by the Rehabilitation Act must use to invite applicants and employees to self-identify as having a disability, extending its validity through July 31, 2029 with no changes beyond the updated expiration date. The renewal comes even though the Office of Federal Contract Compliance Programs (OFCCP) proposed in July 2025 to eliminate the self-identification requirement and prohibit such inquiries altogether, a proposal that remains pending and has drawn significant opposition. Covered federal contractors and subcontractors should begin using the re-approved version of Form CC-305 (reflecting the July 31, 2029 expiration date) as soon as practicable.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase