What's the penalty for not offering commuter benefits in your city or state?

Penalties range from $100 to $250 for a first violation in NYC and New Jersey to $1,000 per day in the Bay Area regional program. 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 where we have one. 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

Applies to employers with 20+ employees. Fines are $100 per covered employee per month for a first offense, $200 for a second, and $400 for a third. Each offense after that is $800 per employee per month. See commuter benefits compliance in Washington, DC for details.

Philadelphia

Applies to employers with 50+ covered employees. Daily fines are $150 to $300 after a 30-day cure period and written warning, with aggregate first-year exposure up to $100,000. See commuter benefits compliance in Philadelphia.

San Francisco

Applies to employers with 20+ employees. Penalties are assessed case by case under the SF Environment Code. Repeat offenses can reach significant per-day fines.

Bay Area (regional, BAAQMD/MTC)

Applies to employers with 50+ employees in the nine-county Bay Area. Penalties are up to $1,000 per day under California Health and Safety Code authority.

Berkeley (TRACC)

Applies to employers with 10+ employees. Penalties are up to $3,000 in the first year, plus 10% late fees and 1% monthly interest, escalating every 30 days. See commuter benefits compliance in Berkeley (TRACC).

Richmond, CA

Applies to employers with 10+ employees. Penalties are assessed case by case. See commuter benefits compliance in Richmond, CA.

Los Angeles

Applies to employers with 50+ employees in the MTA area. Penalties are up to $2,000 in the first year, and $800 per employee for repeat offenses. See commuter benefits compliance in Los Angeles.

New Jersey (statewide)

Applies to employers with 20+ employees. The initial penalty is $100 to $250 for a first violation if not cured within 90 days.

Hawaii

Hawaii has a state enabling law (HRS §46-16.2) that lets each county adopt a commuter benefits ordinance. It is not a statewide mandate, and as of September 2026 we are not aware of a county ordinance in force. See commuter benefits in Hawaii.

Seattle and Chicago

Both have commuter benefit ordinances with employer thresholds. See commuter benefits compliance in Seattle and commuter benefits compliance in Chicago and Cook County.

The cheaper path

Penalties are not the only cost. Non-compliance also forfeits the payroll-tax savings (roughly 7.65% on every pretax dollar) that make the program net even. With Alice, those savings cover the fee, so complying costs nothing out of pocket.

Alice has no up-front employer cost and no manual open enrollment to manage. Employees don't pre-fund. The employer keeps a reserve amount in its Alice plan account; it belongs to the employer and is not a fee. Setup starts with one call.

Talk to sales

sales@thisisalice.com or (929) 552-4625.

Savings shown or implied — including any reference to "cash back" or take-home pay — are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.

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