Bill > H5304

This bill establishes the Commuter Transportation Benefits Act, which requires employers with 500 or more employees in Rhode Island to offer a pre-tax transportation fringe benefit program that allows employees to use pre-tax dollars to pay for commuter transit expenses, such as bus passes. The bill defines key terms like "pre-tax transportation fringe benefit" and "transit pass," and specifies that the benefit must align with federal Internal Revenue Code guidelines. Certain entities are exempted from the requirement, including the federal government, state and local governments, employees covered by existing collective bargaining agreements, and employers who can demonstrate severe financial hardship. Employers who fail to comply will face civil penalties starting at $100 for the first violation, escalating to $250 for subsequent 30-day periods of non-compliance. The bill also mandates that the departments of transportation and labor and training conduct a public awareness campaign to encourage employers to offer these commuter benefits. The law is set to take effect on January 1, 2026, giving employers time to prepare for implementation.

Labor and Employment

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