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New Fringe Benefit Regulations for New York City Employers

New York City Local Law 2014/053 will become effective on January 1, 2016. The law includes every New York City employer with twenty or more full-time employees in the city of New York. The code defines full-time employees as employees who work an average of thirty hours or more per week. Essentially, it permits employees the opportunity to use pre-tax earnings to purchase qualified transportation fringe benefits, which include the transit passes, vanpooling, qualified parking and qualified bicycle commuting reimbursement. The code further states that should an employer thereafter reduce the workforce down below the twenty threshold, the employees receiving the benefit are still to receive the benefit for the duration of the employee’s employ.

Employers found to be in violation of the code shall be liable for a civil penalty of note less than one-hundred dollars and no more than two-hundred fifty dollars for the first violation. The employer has ninety days to cure the violation before any civil penalty is imposed. After the expiration of the ninety day period, if the employer fails to cure the violations, subsequent civil penalties of two-hundred fifty dollars can be assessed on a monthly basis.

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