Philadelphia Employers to Provide Commuter Benefits

Angela Lawrence, Paraprofessional at Klatzkin, contributed to this post.

In early June, the Philadelphia City Council passed a bill that will soon require certain local businesses to provide employees with benefits towards mass transit or bicycle commuting expenses, as more workers return to offices following COVID-19 closures.  The legislation mandates that employers with 50 or more full-time employees located in Philadelphia will have to offer a commuter benefit program, such as a pre-tax payroll deduction for mass transit or qualifying bicycle costs or a company-provided public transit key card.

Eligibility Critieria

Employees who worked an average of 30 or more hours per week over the last year would be eligible for the benefits.  The bill applies to companies that have 50 or more covered employees physically located in the city, even if the company’s headquarters is not in Philadelphia.

As many offices begin to reopen, workers could save hundreds of dollars a year, by using pre-tax dollars to pay for commuting costs or the purchase, maintenance, repair, and storage expenses of commuting by bicycle.  However, the legislation not only helps employees.  The bill encourages people to use mass transit via SEPTA, which saw a major dip in ridership during the pandemic, thereby reducing carbon emissions and congestion on the roads.  Businesses can also save money while offering competitive benefits to attract new employees.  Other major cities such as New York City, Los Angeles, Seattle, and Washington D.C. have already adopted similar programs.

Next Steps

The bill is currently under review by the city’s law department, after which it will go to the Mayor, who is expected to sign it.  The measure would go into effect on December 31, allowing employees to start using the benefits in 2023.

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