Regulation 14 Rule 1

Commuter Benefits Program Mandated by the Air District
Employers Must Comply by Sept. 31, 2014

We Are Here to Help!
BeneFLEX offers a comprehensive solution for your Commuter Benefit Program and will keep you in compliance with Regulation 14 Rule 1. For questions or more information about our Transportation Management Program contact us at (800) 631-3539 or info@beneflexhr.com

What is Regulation 14 Rule 1?
Regulation 14 Rule 1 is a program mandated by the Bay Area Air Quality Management District that requires all public, private, and non-profit employers in nine San Francisco Bay Area Counties (Alameda, Contra Costa, Napa, Solano, Sonoma, Marin, Santa Clara, San Mateo, and San Francisco) with 50 or more full-time employees1 to provide a commuter benefit program to their covered employees2 by September 30, 2014.

Benefits of Regulation 14 Rule 1:
The program was put in place to encourage employees to use mass transit, shuttles, or vanpools to commute to work in order to help reduce traffic, improve air quality, and reduce emissions of greenhouse gases and other air pollutants in the San Francisco Bay Area. This program will also offer potential tax savings to employers and employees who participate in the program.

What You Need to Know:
Employers have until September 30, 2014 to comply with the new regulation. Employers who already offer a commuter benefit option that meets the guidelines set in place by Regulation 14 Rule 1 must still register their organization with the Air District and assign a Commuter Benefits Coordinator for their organization.

Follow these Steps to Setup Your Commuter Benefits Program:
1.  Choose your Commuter Benefit Option:

a.  Pre-Tax Benefit 
Allows employees to exclude their transit or vanpooling expenses from their taxable income. Maximum amount is currently $130 per month.3

b.  Employer-Provided Subsidy
Employer provides a transit or vanpool subsidy to cover or reduce the employee’s monthly transit or vanpool costs to a maximum of $75 per month.3
c.  Employer-Provided Transit

Employer provides free or low-cost transportation. Service operated by or for the employer.3
d.  Alternative Commuter Benefit
Must comply with guidelines and is subject to approval by the Air District.3


2.   Assign a Commuter Benefits Coordinator in your organization.

This person is responsible for completing the registration process for the Bay Area Commuter
Benefits Program and will be the only person with access to the registration process.3
3.   Register your organization for the Bay Area Commuter Benefits Program at      
     
https://commuterbenefits.511.org/step1.
4.  
Notify employees of the Commuter Benefits Program
5.   Re-register every year with the Air District
6.   Keep records of your program for at least 3 years

If You Fail to Comply:
Employers who fail to comply with Regulation 14 Rule 1 may be subject to penalties by the Air District, pursuant to the California Health and Safety Code. In most cases, penalties will include prompt corrective actions and monetary fines. Employees however, are not required to participate in the program(s) offered by the employer.

We are here to help! For questions or more information about our Transportation Management Program, contact us at (800) 631-3539 or info@beneflexhr.com.

Click the link below to view the Bay Area Commuter Benefits Program Employer Guide.
https://commuterbenefits.511.org/docs/employer_guide.pdf#page=5


1. Full-time employee: A “full-time employee” is defined as an employee who normally works at least 30 hours per week.  The employee count is based on the average number of full-time employees on the payroll over the course of the most recent three-month period. (Seasonal or temporary employees who work 120 days or less per year are not included.) Definition from “Employers Guide.” Bay Area Commuter Benefits Program. March 26, 2014
2.  Covered employees: A covered employee is anyone who works at least 20 hours per week. Employers subject to the Program must provide a commuter benefit to all covered employees. Definition from “Employers Guide.” Bay Area Commuter Benefits Program. March 26, 2014
3. “Employers Guide.” Bay Area Commuter Benefits Program. March 26, 2014
​San Francisco Bay Area Countiesinclude: Alameda, Contra Costa, Napa, Solano, Sonoma, Marin, Santa Clara, San Mateo, and San Francisco.