Commuter Benefits in New Jersey
May 9, 2019
On March 1, 2019, New Jersey Governor Phil Murphy signed into law Senate Bill 1567, the nation’s first state-wide law requiring employers to offer pre-tax transportation benefits to employees. Under the New Jersey Transit Benefits Law, New Jersey employers with at least 20 employees are required to offer transit benefits to all employees not covered by a collective-bargaining agreement as of March 1, 2019. Union employees must also be offered the benefit upon expiration of their collective-bargaining agreement. The benefit covers commuter highway vehicle and transit benefits — including parking — at the maximum benefit level allowed by federal law. For 2019, the maximum benefit levels are $265 per month for commuter highway vehicle benefits (or any transit pass) and $265 per month for parking. The New Jersey Labor Commissioner tasked with adopting rules that regulate the law’s administration and enforcement. The law goes into effect March 1, 2020 or upon the promulgation of administration and enforcement rules by the Labor Commissioner, whichever comes first.
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The proceeding information is provided for informational purposes only, should not be construed as or relied upon as legal advice and is subject to change without notice. If you have questions concerning particular situations, specific payroll administration or labor relations issues, please contact your counsel.