What's the penalty for not offering commuter benefits in your city or state?
Meta description: Commuter benefit non-compliance fines range from $100/employee/month in DC to $250/day in NYC. Here's a jurisdiction-by-jurisdiction summary.
Target keywords: commuter benefits penalty, commuter benefits fine, commuter ordinance non-compliance, commuter benefits law violation
Footnote stack: Eligibility, IRS limits, Trademarks, Tax & legal advice
Body
Commuter benefit mandates exist in at least nine US jurisdictions, and non-compliance penalties vary widely. Below is a summary of current per-jurisdiction fines, with links to the detailed compliance page for each location. Penalties are updated as ordinances change; check the linked jurisdiction page for the latest.
New York City
NYC's Commuter Benefits Law applies to employers with 20+ full-time non-union employees. Civil penalties start at $100 to $250 for a first violation if not cured within 90 days, escalating with continued non-compliance.
Washington, DC
20+ employees. First offense: $100 per covered employee per month. Second: $200. Third: $400. Subsequent: $800 per employee per month. See the DC page (Article 1) for details.
Philadelphia
50+ covered employees. Daily fines of $150 to $300 after a 30-day cure period and written warning, with aggregate first-year exposure up to $100,000. See the Philadelphia page (Article 2).
San Francisco
20+ employees. Penalties assessed case by case under the SF Environment Code. Repeat offenses can reach significant per-day fines.
Bay Area (regional, BAAQMD/MTC)
50+ employees in the nine-county Bay Area. Penalties up to $1,000 per day under California Health & Safety Code authority.
Berkeley (TRACC)
10+ employees. Up to $3,000 first year, 10% late fees, 1% monthly interest, escalating every 30 days. See Article 4.
Richmond, CA
10+ employees. Assessed case by case. See Article 5.
Los Angeles
50+ employees in MTA area. Up to $2,000 first year, $800 per employee for repeat offenses. See Article 3.
New Jersey (statewide)
20+ employees. Initial penalty $100 to $250 for first violation if not cured within 90 days.
Hawaii (county-implemented)
20+ employees in implementing counties (notably Honolulu). See Article 6.
Seattle and Chicago
Both have commuter benefit ordinances with employer thresholds; check the local page.
The cheaper path
Penalties are not the only cost. Non-compliance also forfeits the FICA savings the employer would otherwise capture (roughly 7.65% on every pretax dollar). For a typical hourly workforce, that's real money. Alice has no up-front employer cost, no manual open enrollment to manage, no employee pre-funding required, and only a small reserve deposit from the employer. We'll get you onboarded in one call.
Employers: sales@thisisalice.com or (929) 552-4625. Employees: support@thisisalice.com or (888) 431-4355.
For the full list of eligible commuter expenses, see "What parking and transit expenses are eligible?" at help.thisisalice.com/article/52. Eligibility is set by IRC §132(f). Figures shown are for the 2026 plan year and are set by the IRS. Limits are indexed annually; we update this article each November when the IRS issues the following year's Revenue Procedure. Trademarks, brands, and product names referenced in this article are the property of their respective owners. References are for descriptive purposes only and do not imply endorsement. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.