Effective September 30, 2014 employers with 50 or more employees in the San Francisco Bay Area counties must comply with the Bay Area Commuter Benefits Program (CBP). Under the CBP, covered employers must select at least one of four commuter benefit options and make them available to employees. There are also employer registration and reporting requirements and stiff penalties for non-compliance.
Who are covered employers?
Covered employers include any public, private, or non-profit organization within the specified counties that has an average of 50 or more full-time employees. Under the law, full-time is considered as at least an average of 30 work hours per week within the calendar month.
The Bay Area is defined as including all of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, and Santa Clara counties, as well as the western portion of Solano County (including Fairfield and points west) and the southern portion of Sonoma County (including Windsor and points south).
Who are covered employees?
Covered employees include those that average at least 20 hours of work per week within the previous calendar month. The employees must work in the specified counties. Seasonal and temporary employees are not covered employees.
What are the benefits?
There are four (4) benefits options of which an employer must offer at least one (1) or more to employees. They include:
- Option 1 – Pre-Tax Transportation Benefits. A monthly pre-tax deduction of up to $130 a month, to pay for transit or vanpool expenses.
- Option 2 – Employer-Paid Transportation Benefits. A monthly subsidy for transit or vanpool expenses equivalent to the price of the San Francisco Muni Fast Pass (including BART travel), currently $76 a month.
- Option 3 – Employer-Provided Transportation. A company-funded bus or van service to and from the workplace.
- Option 4 – A combination of any of the above three options.
Setting up a Commuter Benefits Program
- There is a full Employer Guide available which includes step-by-step instructions.
- Employers are encouraged to research the type of program that best suits the needs of their employees. Conducting a survey is an effective way to determine those needs. Download a sample survey, click here.
- There are free consultations available.
- Set up the system for deductions or subsidy payments, as well as, advise employees of their options and the procedure for signing up to participate. A sample internal communications notice that can be tailored to each individual company is available, click here.
Notice Requirements
Employers must provide notice to covered employees several times. The first notice should be provided when the employer first makes the commuter benefit available or when the employee is hired. Subsequent notice should be given at least one time per year. This notice is tailored to the options the employer has made available.
Commuter Benefits – Where to report compliance varies depending on the size of the employer’s workforce.
If you have 50 or more employees across all sites in the Bay Area register and report at http://commuterbenefits.511.org.
If you have fewer than 50 employees in the Bay Area but more than 20 nationwide and a location in San Francisco register and report at SFEnvironment.org/CBOcompliance.
Enforcement
The goal of the San Francisco Commuter Benefits Ordinance is to reduce congestion and greenhouse gas emissions from drive alone commuting trips. There are many resources available, however, for companies that do not comply with the Ordinance, the Department of Environment will take the following steps as necessary:
- Warning – A written notice of violation.
- Fines – Fines will be levied 90 days after the initial written notice. Employers will be subject to a fine of $100 for the first violation, $200 for the second violation and $500 for the third violation, up to a maximum of $800.
Compliance Poster Company‘s HR Research and Compliance Team reports on employer requirements for labor and employment-related laws.