NYC’s Commuter Benefits Law
NYC’s Commuter Benefits Law expands the right to pre-tax transit benefits to more New Yorkers. A commuter savings program helps employers and employees both save!
- Employers can save by reducing their payroll taxes. The more employees who sign up for transportation benefits, the more the employer can save.
- Employers can also attract and retain employees by offering transportation benefits.
- Employees can lower their monthly expenses by using pre-tax income to pay for their commute.
Key Information for Employers and Employees
- October 26, 2015: NYC launches public education and outreach campaign to help employers and employees know their responsibilities and rights.
- January 1, 2016: NYC’s Commuter Benefits Law takes effect. Beginning January 1, for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to pay for their commute.
- July 1, 2016: DCWP—formerly DCA—authorized to issue violations to businesses that do not comply with the law. The law gave employers a six-month grace period—from January 1, 2016 to July 1, 2016—to begin offering a commuter benefits program. Employers were not subject to penalties for violations that took place before July 1, 2016. The law continues to provide employers 90 days to cure (correct) a violation before DCWP is authorized to seek penalties.
- January 1, 2023: Under federal tax law and effective January 1, employees can currently use up to $300 a month of their pre-tax income to pay for qualified transportation.
Law and Rules
New York City Administrative Code > Title 20: Consumer and Worker Protection > Chapter 9: Mass Transit Benefits
Rules of the City of New York > Title 6: Department of Consumer and Worker Protection > Chapter 7: Office of Labor Policy and Standards > Subchapter C: Transportation Benefits
View metrics from January 1, 2016 through October 15, 2018