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City law makes commuter benefits mandatory

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September 17, 2008
1 minute read
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As companies look for the best ways to help ease workers’ commuting woes, one locality has stepped in with a first-of-its-kind law.
These days, a lot of employers are asking: What should employers be doing to attract and retain employees who may have an hard time paying for the gas that gets them get to and from work?
Allow telecommuting? Shorten the week? Help co-workers carpool?
In San Francisco, employers’ minds have been made up for them. The city has just passed a law requiring companies to offer workers transportation benefits.
Starting in December of this year, all companies with 20 or more employees will be required to do one of the following:

  • Start a program allowing companies to set aside pre-tax funds to pay mass transit expenses, in accordance with IRS regs
  • Directly pay employees’ commuting expenses (for example, by buying them mass transit passes), or
  • Set up van pools for employees.

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