Frequently asked questions
When will the New Jersey commuter benefit law go into effect?
This law went into effect on March 1, 2020. Any company found in violation of the law after this date will have 90 days to comply with the law before any penalties are imposed.
What is the penalty for failing to comply?
The penalty for failing to comply with this commuter benefit law will be a fine of $250 per month.
Are the penalties per company or per employee?
Penalties are imposed per company.
Employers have 90 days to fix violations before penalties are imposed. How does that work?
If your company is fined for failing to comply with the New Jersey commuter benefit law, you will have 90 days to comply in order to avoid the penalty.
Do my employees have to be residents of New Jersey to qualify for the benefit?
No, they just have to work in the state of New Jersey.
Can I offer commuter benefits to employees working less than 10 hours per week?
Yes, you can.
What happens if a company doesn’t comply within that 90-day window?
Any company that doesn’t comply during the 90-day violation window will be charged with a subsequent violation and will have to pay an additional $250 penalty every 30 days until compliance is completed.
Who will enforce the New Jersey commuter benefit law?
The Department of Labor and Workforce Development will enforce the legislation.
Do I have to offer the commuter benefit to employees who don't work in New Jersey?
While the New Jersey law does not require you to offer this benefit outside of New Jersey, there are several city ordinances requiring employers to offer a commuter benefit. Commuter benefits are currently required by law in:
- Seattle, Washington
- New York City
- Washington, DC
- Berkeley, California
- Richmond, California
- San Francisco, California
- New Jersey *new
- Los Angeles, California *coming soon
My business is headquartered outside of New Jersey. Does the law still apply?
It depends on whether you have offices in New Jersey. If you have 20 or more employees that work in a New Jersey office, then yes, the law applies to your company.
What if an employee doesn’t want the benefit?
If employees don’t want to take advantage of saving on their commuting costs with commuter benefits, that is their choice. You only need to offer a commuter benefit program.
What do I have to do?
OPTION 1: IN-HOUSE MANAGEMENT
- Notify each employee in writing that the benefit is available.
- Written proof/confirmation from every employee that they have been given the opportunity to participate.
- Maintain detailed records of employees that have either opted into the program or declined to participate.
OPTION 2: COMMUTER BENEFIT PROVIDER (RECOMMENDED)
Partner with an experienced commuter benefit provider who will assist you with every step of the process of implementing a successful commuter benefit program.