New Jersey has become the first to pass a statewide Commuter Benefit Ordinance with S. 1547. On March 1, 2019, New Jersey Gov. Phil Murphy signed into law a new commuter benefit mandate affecting employers with more than 20 employees.
Although most details are still being put into place, the mandate guarantees that eligible employers must offer employees the opportunity to use a pre-tax transportation fringe benefit letting employees set aside a certain portion of pre-taxed wages for specified transportation services.
“Transit benefits are a win-win for employers, commuters and local government. This policy will increase transit ridership, reduce congestion and improve air quality while also providing employers payroll tax benefits.”
In this instance, employee is defined as anyone hired or employed by the employer and reports to the employer’s work location, the same definition used in unemployment compensation law. There are exceptions and special timing considerations for employees covered by a collective bargaining agreement and Federal Government employees.
The mandate take effect immediately, but will not be enforced until final rules are released. The earliest enforcement of the New Jersey Commuter Benefit will begin March 1, 2020. The Commission of Labor and Workforce Development will create the rules and regulations surrounding the execution and enforcement of the benefit and civil penalties will be upheld for non-compliance.
If you are looking for hands-on assistance with the new benefit law, or any labor laws regardless of location, schedule a free, no-pressure consultation with one of our SHRM certified in-house HR experts. With our HR Business Partner program, we link you with a dedicated HR consultant for project based or long-term outsourced assistance. Packages are created and priced based on your specific needs, so schedule a time to talk today.