IRS new mileage rate $.725 per mile: On December 29, the IRS announced that the standard mileage rate for business travel is increasing to 72.5 cents per mile on January 1, 2026, up from 70 cents in 2025. The IRS also announced the following 2026 rates for other purposes: 20.5 cents per mile driven for medical or moving purposes for qualified active-duty members of the armed forces; and 14 cents per mile driven in the service of charitable organizations.  These rates apply to electric and hybrid-electric automobiles, as well as gasoline- and diesel-powered vehicles.

Healthcare costs in 2026 will rise almost as high as 2025: Be prepared for the 2027 budget season.  Healthcare costs are expected to continue to grow like 2026. KFF’s 2025 Employer Health Benefits Survey showed that family premiums for employer-sponsored health insurance were up 6%, or $1,408, compared to last year. All told, family premiums were on average $26,993 in 2025, or higher than the cost of a new Toyota Corolla Hybrid, as KFF President and CEO Drew Altman put it. Meanwhile, HUB International’s 2026 Benefits Cost Trend report, released at the same time, predicted that medical and prescription benefit costs will increase 8% to 10% next year, driven in part by the use of high-cost drugs, such as GLP-1s and auto-immune medications.  Cost controls are coming into focus.  According to a Mercer survey, 32% of large employers provided a standalone specialized diabetes program in 2025, 28% offered a musculoskeletal program, and 23% offered a fertility program. These programs are typically low cost or free and delivered virtually, per the survey of 2,010 employers.  Source: HR Dive 11/19/25

Hiring is driven by replacing workers, not adding new: Hiring has slowed from earlier in the year, so one would think that new hires, which we define as workers added to an employer payroll in the last three months, would be a shrinking share of the workforce. Instead, they’re on the upswing. What gives?  In October, new hires accounted for 4.4% of all employees, ADP payroll data shows, up from 3.9% a year ago. This growing share of new hires would seem to run counter to the slowed pace of hiring. That contradiction tells us a lot about today’s jobs market.  New hires typically fluctuate with the business cycle, but the aging U.S. workforce means that demographics have begun playing a bigger role in hiring decisions. Employers are hiring to replace existing workers, not increase headcount.  As of October 2025, the share of new hires stood at 4.4%, larger than the previous two Octobers, even though job growth was stronger in 2023 and 2024. The Bureau of Labor Statistics projects that employment will grow much more slowly over the next decade, by just 3.1% compared to the 13% growth we experienced over the previous decade.  Source: ADP 11/18/25

Is the lack of taking PTO a sign of job hunting and hopping? Employees are not taking their full PTO in a year.  Research from FlexJobs highlights the scope of the issue: Almost a quarter of employees the organization surveyed didn’t take a day off in 2024, while more than 20% took fewer than five days. This is despite the vast majority, more than 80%, having access to paid time off. Even if employees are allowed to roll some unused PTO into the next calendar year, widespread resistance to taking time regularly isn’t a “policy problem,” says Curtis Forbes, founder and CEO of employee engagement platform MustardHub.  Instead, Forbes says, “it’s a cultural signal that people believe rest comes with a penalty.” FlexJobs’ research highlights the link between culture and unused PTO. While about one-third of those who avoided taking time off cite not having enough days saved up, a larger share (43%) blame their workload, saying it’s too heavy to justify time away. Similarly, nearly a third are worried about falling behind, and almost as many say they feel guilt and pressure to demonstrate a commitment to their work.  For these employees, “the culture has made stepping away feel costly,” Forbes says. Unused PTO, he adds, is “an early warning sign.” Turnover is the “late one.”  Source: HR Executive 11/20/25

EEOC releases new National Origin (anti-American bias) guidance: The Equal Employment Opportunity Commission released new technical assistance and updated online information about national origin discrimination. A new landing page on the civil rights agency’s website outlines how the public can report allegations of potential discrimination, including flagging visa fraud to the U.S. Immigration and Customs Enforcement.  The new and updated materials underscore EEOC Chair Andrea Lucas’ continued focus on strengthening compliance with civil rights protections against national origin discrimination and ensuring those protections are applied evenhandedly to all workers. They also reflect her priority to confront unlawful anti-American national origin bias, an area she has identified as a significant and ongoing focus for the agency’s compliance efforts, enforcement work, and litigation. Source: EEOC 11/19/25

Illinois AI law took effect January 1: Illinois employers are reminded that a law addressing the use of AI in the workplace is set to take effect January 1, 2026.  It applies to employers, employment agencies, and labor organizations within Illinois that use AI for decisions like hiring, promotion, discharge, and other terms of employment. It applies to all employers, regardless of whether the company has a physical location in the state of Illinois. AI is defined broadly and includes not only generative AI but any machine-based system that generates outputs influencing employment decisions, with no specific exemptions provided.  The law generally requires two things for organizations using AI in employment related decisions: Avoid using AI that results in discrimination based on protected classes, such as race, gender, age, or disability; and provide notice to employees when AI is used for employment decisions, explaining its purpose and the characteristics it assesses.  Source: Sheppard Mullin Richter & Hampton LLP 11/19/25