(September 18, 2008) San Francisco recently signed into law a new ordinance that requires employers with at least 20 employees to offer their workers at least one of three transportation benefit options.
This mandate, the first of its kind in the nation, requires employers to have the appropriate programs in place by mid-January 2009. This includes offering employees at least one of the following transportation benefits:
- A pre-tax election of a maximum of $110 per month, consistent with current federal law.
- An employer-provided transportation pass (or reimbursement for the pass) equal in value to $45 (or more) per month.
- Employer-provided transportation at no cost to employees.
Enforcement and Penalties
San Francisco’s Department of the Environment, in consultation with the San Francisco Office of Labor Standards Enforcement, is charged with issuing rules and regulations to implement the new ordinance, which are to conform to IRS regulations and other San Francisco ordinances. Civil penalties for non-compliance, including a fine not to exceed $100 for the first violation, $200 for the second violation within the same year, and $500 for each additional violation within the same year, or administrative fines may be assessed, but not both. San Francisco’s enforcement costs also may be recovered.
The California Chamber of Commerce has recommended that employers having more than 20 employees (full-time, part-time, temporary, etc.) anywhere (not just in San Francisco), with any employee working at least 10 hours a week in San Francisco, consult with legal counsel and their tax specialist to prepare for implementation of these requirements.
Keep an eye on HRCalifornia.com for updates when regulations are released.
Free Newsletter
Employers can keep up with all relevant case law, statutory and regulatory updates, by signing up for the free HRCalifornia Extra eNewsletter. This concise biweekly eNewsletter is filled with reports on the latest labor laws, and how they could affect your company. Subscribers receive special reports if updates or changes happen on important legislation.
Staff Contact: Jessica Hawthorne