On June 9, 2022, Philadelphia City Counsel passed an ordinance called the “Employee Commuter Transit Benefit Programs” requiring employers with 50 or more covered employees to provide a commuter transit benefit program. Enforcement of this ordinance will go into effect on December 31, 2022.

What Must Employers Do?

An employer must make available to covered employers at least one of the following commuter transit benefit programs:

Election of a pre-tax, payroll deduction for a fare instrument (pass, token or fare card) or transportation in a commuter highway vehicle ($280 per month indexed for 2022) or a qualified bicycle expense; or

An employer-paid benefit whereby the employer supplies a pass, token or fare card for a covered employee’s mass transit expense; or
Any combination of the two
For employees that regularly bike to work, a tax-free reimbursement must be made available for the purchase, maintenance, repair and storage expense related to bicycle commuting. The amount of this benefit shall not exceed $20 per month.

Enforcement & Penalties:

Enforcement of this ordinance will begin after December 31, 2022. Covered employees will have the ability to report their employer to a government agency for non-compliance. Following a mediation period, a written warning will be issued to the employer if it is determined to be non-compliant. If the employer remains non-compliant for 30-days following the issuance, fines may be imposed of $150 - $300 per day, with each day constituting a separate violation.

What Employers Can Do Now:

Review the company’s current policies related to commuter benefits to ensure it is in compliance with the new ordinance
If the company does not currently offer commuter benefits, consult with your HR, legal, and/or Benefits Advisory team to create the necessary policies and a process for administering these benefits
Notify covered employees of the new benefits once implemented

Questions? Contact our Benefits Team:

Email: benefits@capstonegrp.com

Office: 215-542-8030