As employers, sometimes it is difficult to keep with the employment law changes, which is why you should consult periodically with an employment defense lawyer and stay apprised of new laws.
At the end of October 2014, New York City Mayor Bill de Blasio signed the Affordable Transit Act into law. Under the new law, NYC companies with 20 or more full-time employees must offer their employees pre-tax transit benefits. The new act follows the limits already established by the IRS, which allows a $130 pre-tax benefit that can be deducted from salaries for mass transit expenses. Advantages the new law offer for employers and employees are:
Employees can opt into the new program and save over $400 a year on Metro Card expenses
Employers save more than $100 a year per employee in tax liability
An estimated 450,000 New Yorkers not currently offered pre-tax transit benefits now have access to them.
The new law goes into effect on January 1, 2016. Employers violating the law are subject to civil penalties but have 90 days to correct a violation before having the penalty imposed. Also businesses have a grace period until July 1, 2016 to adjust to the law and are not subject to penalties occurring prior to that date.
The intent of the new law is to make mass transit more affordable for New Yorkers, and it is also an initiative aligned with deal with climate changes.
Stay on top of legal changes by consulting with skilled lawyers. Our employment defense attorneys at Stephen Hans & Associates offer employers decades of legal experience that helps protect their rights along with their bottom lines.