By Christina M. Reger, Esq.

Philadelphia Mayor Jim Kenney has signed into law the ‘Employee Commuter Transit Benefit Ordinance.’ 

Can your local municipality be far behind?

Effective December 31, 2022, covered employers in Philadelphia with 50 or more employees must provide covered employees with a commuter transit benefit program.

The Details:
A covered employer is defined as an individual, co-partnership, association, corporation, or other entity that employs 50 or more covered employees for compensation (excluding government employers).

A covered employee is one who works at least 30 hours per week for compensation within the geographic boundaries of Philadelphia for the same employer within the previous 12 months.

Under the ordinance, a covered employer must make available for any covered employee at least one of the following:

• Election of a pre-tax, payroll deduction for a fare instrument (pass, token or fare card) or transportation in a commuter highway vehicle ($280 per month indexed for 2022) or a qualified bicycle expense;* or
• An employer-paid benefit whereby the employer supplies a pass, token or fare card for a covered employee’s mass transit expense; or
• Any combination of the above.

*Note that qualified bicycle commuting reimbursement was suspended for tax years 2018-2025 under the 2017 Tax Cuts and Jobs Act.

Covered employers in Philadelphia must provide the required commuter transit benefit to covered employees no later than December 31, 2022.

For a copy of the complete ordinance please click here.

Having an office and clients in such close proximity to Philadelphia, I keep up with the city’s employment laws in order to keep you informed and compliant.

If you are an employer of more than 50 and have (or anticipate having) any employees who commute to or within the Philadelphia city limits, call me.

That deadline is only 10 weeks away!