Governor Phil Murphy signed S1567 into law.
On March 1, 2020 (or the effective date provided in the regulations), New Jersey employers that employ at least 20 employees will be required to offer a pre-tax transportation fringe benefit to their employees who are not currently in a collective bargaining agreement.
A pre-tax benefit will allow an employee to set aside a certain portion of pre-taxed wages, which could be made available for specified transportation services while reducing the employee’s federal taxable income. The pre-tax benefit could cover vanpools and mass transit costs; however, the benefit may not be used for parking.
The New Jersey Department of Labor and Workforce will adopt rules and regulations concerning the administration and enforcement of the pre-tax benefit. Non-compliant employers will be assessed civil a penalty of $100-$250 for the first violation and an additional $250 penalty for each 30-day period the employer remains non-compliant.
For questions regarding this new law or any employment issues, please contact a Wilentz employment lawyer at 732-352-9858.
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