NJ Passes Commuter Benefit Law

This new ordinance would require employers with more than 20 employees to offer commuter benefits.

New Jersey Employers Must Now Offer Employees Pre-Tax Commuter Benefits!

New Jersey Governor Phil Murphy recently signed S.1567 into law, making New Jersey the first state to mandate a commuter benefit.  New Jersey’s law requires employers in the state to offer pre-tax commuter benefits to employees. While the law is currently in effect, it is not operative until the earlier of: 365 days following the date of enactment (March 1, 2019), or the effective date of rules and regulations that the law directs the Commission of Labor and Workforce Development to adopt. New Jersey is now the first state to mandate a commuter benefit. New York City adopted a similar law in January 2016. 

How does the NJ commuter law impact employers?

The state’s new commuter benefits law requires employers that employ at least 20 workers to offer a pre-tax transportation fringe benefit to all employees who are not subject to a collective bargaining agreement. Any employer found to be in violation of the requirement shall be liable to a civil penalty. 

When does the new law take effect?

While the law is currently in effect, it is not operative until the earlier of: 365 days following the date of enactment (March 1, 2019), or the effective date of rules and regulations that the law directs the Commission of Labor and Workforce Development to adopt.

Failure to comply

Employers that fail to comply with the law are subject to a penalty of between $100 to $250 for the first violation. Before a penalty is imposed, however, employers will have 90 days from the date of the violation to offer the pre-tax transportation fringe benefit program. If, after the 90-day cure period, the employer does not adopt a pre-tax transportation fringe benefit, it will be subject to a $250 penalty for each additional 30-day period in which an employer fails to offer the benefit.