An increasing number of jurisdictions around the country, including parts of California, New Jersey and Washington, DC, are mandating that employers provide commuter benefit programs that allow employees to pay for commuting costs on a pre-tax basis. While the requirements are similar across most jurisdictions, there are specific rules for which employees are covered under the different laws and other key distinctions. When budgeting and developing these programs, employers should be mindful of the different conditions under state and local law to ensure that commuter benefits meet all applicable requirements.
| City/County/State | Citation | Covered Employers | Covered Employees | Reimbursement Limit |
| Berkeley, CA | Berkeley Commuter Benefit Program Ordinance B.M.C. 9.88 (TRACCC) | Berkeley employers with 10 or more employees, including those who work outside the geographic boundaries of Berkeley | Any person who has performed an average of at least 10 hours of work per week for compensation within the geographic boundaries of Berkeley for the same employer within the previous 12 months and qualifies as an employee entitled to minimum wage payments under the California minimum wage law | Same as IRS (“up to the maximum level allowed by federal tax law”) |
| Richmond, CA | Richmond Commuter Benefits Ordinance Ord. No. 22-09 N.S. s. 1, 7-21-09 | Richmond employers for which an average of 10 or more persons per week perform work for compensation, including those who perform work outside the geographic boundaries of Richmond | Any person who performs an average of at least 10 hours of work per week for compensation over a 90-day period within the geographic boundaries of Richmond for the same employer and qualifies as an employee entitled to minimum wage payments under the California minimum wage law. | Same as IRS (“up to the maximum level allowed by federal tax law”) |
| San Francisco, CA | San Francisco Environment Code Sec. 421 (Commuter Benefits Program) | San Francisco employers for which an average of 20 or more persons per week perform work for compensation (full-time, part-time and temporary employees are counted, as are employees who work outside the geographic boundaries of San Francisco) | Any person who performs an average of at least 10 hours of work per week for compensation within the geographic boundaries of San Francisco for the same employer within the previous calendar month and qualifies as an employee entitled to minimum wage payments under the California minimum wage law | Same as IRS (“up to maximum level allowed by federal tax law”) |
| San Francisco Bay Area (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, southwestern Solano and southern Sonoma Counties) | Government Code Section 65081 (Bay Area Commuter Benefits Program) | Any employers for which an average of 50 or more full-time employees per week perform work for compensation within the geographic area covered by the ordinance | An employee who has performed at least an average of 20 hours per week within the previous calendar month within the geographic area covered by the ordinance | Same as IRS (“up to the maximum amount allowed by federal tax law”) |
| New Jersey | P.L. 2019, Chapter 38 (NJ Transit Benefits Law) | Every employer in New Jersey that employs at least 20 employees | All employees not covered by a collective bargaining agreement | Same as IRS (“at the maximum benefit levels” allowable under federal law) |
| Seattle (not effective until January 1, 2020; enforcement begins January 1, 2021) | Seattle Municipal Code Title 14 Chapter 14.30 (Commuter Benefit) | Employers who employ 20 or more employees (including full-time, part-time, and temporary employees, and those who work outside of Seattle) | Employees who work an average of 10 hours or more per week in Seattle in the previous calendar month | Same as IRS (“up to the maximum level allowed by federal law”) |
| Washington, DC | D.C. Act 20-385 (Sustainable DC Omnibus Amendment Act of 2014) | Employers located in Washington, DC, with 20 or more employees | Full-time and part-time employees who (a) perform 50% of their work in Washington, DC, or (b) whose employment is based in DC, and a substantial amount of their work is performed in DC with less than 50% of their work performed in any other state | Same as IRS (“the maximum amount that may be deducted . . . pursuant to section 132(f)(2) of the Internal Revenue Code”) |
