Last updated: May 26, 2026. Primary source: NYC DCWP Commuter Benefits FAQ.
New York City’s commuter benefits law generally requires for-profit and nonprofit employers with 20 or more full-time non-union employees working in New York City to offer eligible employees the opportunity to use pretax income for qualified transit expenses. Alice provides the pretax payroll mechanism, employee-facing enrollment flow, eligibility documentation, and Alice Card when available under the employer’s plan, so employers can offer and document the benefit with less manual work.
Who NYC’s Commuter Benefits Law Covers
Covered employers. For-profit and nonprofit employers with 20 or more full-time non-union employees working in New York City. The 20-employee threshold is counted across all NYC locations for chains and multi-location groups.
Full-time defined. Under NYC guidance, full-time generally means an employee who has worked an average of 30 or more hours per week in the most recent four weeks, with any portion of that work performed in NYC, for one employer.
Union and collective bargaining. Employees covered by a collective bargaining agreement are generally excluded from the mandate. Employers with mixed union and non-union workforces must still count their full-time non-union employees toward the 20-employee threshold.
“Working in NYC.” Performing work within the five boroughs. Remote employees working from home outside NYC generally do not count toward the threshold — verify edge cases with employment counsel.
Multi-location groups. If your restaurant or hospitality group has multiple NYC locations and the combined full-time non-union workforce reaches 20, you are covered — even if a single location has fewer than 20 full-time non-union employees on its own. This is easy to miss in the hospitality and food service industry.
What NYC’s Law Requires
Three practical obligations:
The offer. Covered employers must offer every eligible full-time employee the opportunity to use up to the IRS monthly limit in pretax income for qualified transit expenses. For 2026, that limit is $340 per month for transit — set by IRS Rev. Proc. 2025-32. See the 2026 commuter limits page for the current figure.
Transit, not parking. NYC’s mandate covers transit expenses only — subway, bus, commuter rail, ferry, eligible vanpool. Parking is not covered under the NYC law. Alice supports qualified parking nationally as part of its commuter benefit program, but parking does not count toward NYC compliance.
Written offer and recordkeeping. NYC requires employers to maintain written records showing that the benefit was offered to eligible employees and to capture employee responses. Employers should retain written offers and employee responses for two years. Alice’s enrollment flow and documentation are designed to support these records.
Offer timing. NYC guidance generally requires that eligible employees be offered the benefit within four weeks of beginning full-time work, or upon becoming subject to the law.
For the full list of eligible transit expenses, see Alice’s eligibility page.
Penalties for Non-Compliance
NYC’s Department of Consumer and Worker Protection (DCWP) enforces the commuter benefits law.
- First violation: $100 to $250 if the employer does not cure within the 90-day cure period.
- Each 30-day period after the first violation remains uncured: an additional $250.
Penalty amounts and the cure period are set by NYC DCWP. For the authoritative penalty language and current enforcement guidance, see the NYC DCWP commuter benefits FAQ.
The larger operational risk is discovering missing offer records after the fact. Setting up a compliant program before a complaint is filed — and keeping written offers and responses on file for the required two-year retention period — is the lower-cost path.
How Alice Supports NYC Compliance
Alice is built for multi-location, hourly, tipped-wage, and variable-hour NYC workforces. After setup, Alice supports the offer workflow, the employee enrollment flow, eligibility documentation, the pretax payroll mechanism, and Alice Card when available under the employer’s plan.
The employer remains the entity responsible for compliance with NYC law. Alice provides the platform, the records, and the operational workflow.
Setup typically takes about one week. The five steps:
- Payroll connection. Alice connects to your payroll system — ADP, Toast, UKG, Paylocity, Paychex, and other supported providers. You do not manually send employee lists.
- Scheduling connection (when applicable). For employers with scheduling platforms like 7shifts, Alice can connect scheduling data to right-size benefit activity around actual paychecks.
- Employer logo and plan details. Alice sets up your plan under your brand.
- Billing and banking. Your business banking and billing are connected to fund the program.
- Employee-facing materials. Alice provides enrollment communications you can review and send.
Comparing providers? See Alice vs. WageWorks.
NYC Employers Already on Alice
- Firmdale Hotels — boutique hotel group with three NYC properties (Crosby Street Hotel, The Whitby, Warren Street Hotel); 185 NYC employees on Alice.
- Joe Coffee Company — NYC specialty coffee chain with 20+ Manhattan, Brooklyn, and Queens locations; 107 employees on Alice.
- Stout NYC Hospitality Group — bar and restaurant group with 18+ locations across NYC and New Jersey; 145 employees on Alice.
- Unapologetic Foods — NYC Indian restaurant group with multiple NYC locations on Alice.
- Dominique Ansel Bakery — NYC bakery and cafe group on Alice.
Set Up NYC Commuter-Benefit Support
If you have 20 or more full-time non-union employees working in New York City and you do not have a compliant commuter benefit program in place, the cure period exists for setup — it is not a substitute for offering the benefit.
Contact sales@thisisalice.com or call (929) 552-4625. We’ll get you onboarded in one call.
You can also start online.
This page is informational and reflects publicly available NYC and IRS guidance as of May 26, 2026. Alice does not provide tax, legal, or financial advice. Consult qualified counsel for guidance specific to your business.