Regional Commuter Benefit: What it Means for Employers

Under SB 1339, signed by Gov. Jerry Brown last October, the Metropolitan Transportation Commission (MTC) and the Bay Area Air Quality Management District (BAAQMD) are authorized to establish a commuter benefit policy aimed at reducing traffic and improving air quality.

The four-year pilot program would require employers with 50 or more full-time employees to offer their employees at least one of the following benefits:

• The option to pay for their transit, vanpooling or bicycling expenses with pre-tax dollars, as allowed by federal law;
• A transit or vanpool subsidy of at least $75 per month;
• A free shuttle or vanpool operated by or for the employer; or
• An alternative program, approved by the MTC and BAAQMD, that provides similar benefits in reducing single-occupant vehicles

Although the bill authorized adoption of the policy on or after January 1^st of this year, an effective date has not yet been determined. Employers will have six months to comply with the policy once the effective date has been established. The policy will cover employers in the following counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo and Santa Clara as well as the southwest portion of Solano County and the southern portion of Sonoma County.

In addition to contributing to a cleaner environment, the policy will offer economic benefits to both employers and employees. Employers can reduce payroll taxes (approximately 9 percent of subject wages) and employees can lower their commute costs by up to 40 percent.

For more information, visit http://rideshare.511.org/employers/.