Philadelphia City Council Passes Legislation Providing Philadelphia Employees with Commuter Benefits
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On Thursday, June 9, 2022, the Philadelphia City Council passed legislation that would require certain employers to provide employees with benefits that cover commuting related expenses. The bill is currently before the mayor but is expected to be signed. Once signed, this ordinance would take effect on December 31, 2022.
06.13.22
The legislation requires employers with 50 or more covered employees to provide an employee commuter transit benefit program. As part of this program, the employer is required to offer at least one of the following:
- Employee elected pre-tax, payroll deduction for mass transit expense, which includes fare for mass transit or transportation in a commuter highway vehicle; and/or
- An employer-paid benefit, which covers the fare for mass transit or transportation in a commuter highway vehicle.
Employers are also required to offer employees, who regularly use a bicycle for commuting, a tax-free reimbursement for the purchase, maintenance, repair and storage expenses related to bicycle commuting. The amount of this benefit shall not exceed $20 per month.
Covered employees eligible for this benefit program are those who work at least 30 hours per week in Philadelphia and have worked for that same employer within the previous 12 months.
Employers covered under this bill should begin taking the following steps in order to comply with the legislation:
- Review the company’s current policies related to any commuter transit benefit program and ensure it complies with the legislation.
- If the employer does not currently offer any commuter transit benefit program, begin taking steps to decide which of the required benefits it plans to offer.
- Ensure that the commuter transit benefit program is consistent with the relevant sections of the Internal Revenue Code.
- Update the company policies to include any new commuter transit benefit program.
- Notify employees of the new benefits once any new commuter transit benefit programs are implemented.
The regulations concerning employer-offered benefits are complicated. If you have any questions about this, or any other employee benefits, please contact one of Klehr Harrison’s labor and employment attorneys.
Author Lee Moylan is chair of the labor & employment practice group at Klehr Harrison.