Which cities and states require commuter benefits?

Active mandates cover New York City, New Jersey statewide, San Francisco, the 9-county Bay Area, Chicago/Cook County, Seattle, Washington DC, Philadelphia, Los Angeles, Berkeley CA, and Richmond CA. Threshold and rules vary by location.

What do most commuter benefit laws require?

Most current mandates share three elements: an offer requirement (covered employers must offer eligible employees the chance to use pretax income for qualified commuter expenses up to the federal IRS monthly limit), recordkeeping, and civil penalties for non-compliance that typically include a cure period.

Commuter Benefit Laws by Location

Q: How does Alice support commuter benefit compliance?

Alice connects to the employer's payroll system and supports the offer workflow, employee enrollment flow, eligibility documentation, pretax payroll deduction, and Alice Card (a Visa commercial credit card) for eligible spending. The employer remains responsible for compliance; Alice provides the platform and records.

Commuter Benefit Laws by Location — Alice

Last updated: May 26, 2026.

Several cities, counties, and states require employers to offer pretax commuter benefits to eligible employees. The specific threshold, covered worker definition, recordkeeping, and penalty rules vary by location, but the underlying federal mechanism is the same: a pretax payroll election under IRC §132(f), up to the IRS monthly limit ($340 per month for transit and $340 per month for qualified parking in 2026).

Alice helps employers offer and document the benefit in each location they operate. The employer remains the entity responsible for compliance; Alice supplies the pretax payroll mechanism, employee enrollment flow, eligibility documentation, and Alice Card (a Visa commercial credit card) when available under the plan.

Commuter benefits by location

New York City — Local Law 53: covers for-profit and nonprofit employers with 20 or more full-time non-union employees working in NYC. Transit-only mandate. Written offer and two-year recordkeeping requirement. Enforcement by NYC DCWP; penalties of $100 to $250 for the first uncured violation, $250 per additional 30-day uncured period.
New Jersey — Statewide Commuter Benefits Law: employers with 20 or more employees in New Jersey. Collective-bargaining exclusions. NJDOL enforcement; civil penalty up to $250 first violation, $250 per 30-day continued non-compliance.
San Francisco & Bay Area: SF Commuter Benefits Ordinance (20+ employees nationwide with an SF location) plus the Bay Area Commuter Benefits Program (50+ FT employees across the 9-county Bay Area Air District). SF Environment and 511.org / Bay Area Air District enforcement.

Guides in progress for Los Angeles, Washington DC, Seattle, Chicago / Cook County, Philadelphia, Berkeley, and Richmond CA.

What commuter benefit laws usually require

Most current mandates share three elements:

An offer. Covered employers must offer eligible employees the opportunity to use pretax income for qualified commuter expenses, up to the federal IRS monthly limit.
Documentation. Employers must maintain records showing the offer was made and that eligible employees had the opportunity to elect.
Penalties for non-compliance. Civil fines, usually with a cure period, that escalate with continued non-compliance.

Specific thresholds and penalty structures differ — check the page for your location above for the exact rules.

How Alice supports compliance

Alice connects to your existing payroll system and supports the offer workflow, employee enrollment flow, eligibility documentation, the pretax payroll deduction, and Alice Card (a Visa commercial credit card) for eligible spending. Setup typically takes about one week from order form to first payroll run.

Alice’s employer pricing is designed so employer fees do not exceed employer payroll tax savings from the program (exact pricing depends on the employer agreement and program terms).

Contact sales@thisisalice.com or (929) 552-4625. We’ll get you onboarded in one call.

Alice does not provide tax, legal, or financial advice. Consult qualified counsel for guidance specific to your business.