Bill
S 1345
Massachusetts employers with 50+ workers must offer non-union employees the option to participate in a pre-tax transportation fringe benefit, and penalties apply for noncompliance.
Note on source materials
- The bill text provided (Senate No. 1345, Commonwealth of Massachusetts) addresses expanding access to employer-offered pre-tax commuter transit benefits. Some accompanying metadata in your submission (title mentioning sea-level rise, sponsor lists, committee referrals) appears inconsistent with that text. This summary is based on the full bill text included in your message (Senate No. 1345, filed 1/15/2025) and the legislative actions tied to that text where possible. Verify with the official Massachusetts Legislature site for final record and status.
Summary: purpose and intent
- Purpose: Require most Massachusetts employers to offer employees the option to participate in a pre-tax transportation fringe benefit (commuter transit and vanpool benefits) consistent with federal tax rules, and to promote awareness and compliance.
- Intent: Expand employee access to tax-advantaged commuter benefits to lower commuting costs, encourage use of transit/shared-ride options, and standardize employer offerings across the Commonwealth.
Key provisions
- Definitions
- “Employee” and “Employer” adopt meanings from chapter 151A (Massachusetts unemployment law); individual employers are identified by Federal Employer Identification Number (FEIN). The U.S. government is excluded as an employer under this section.
- “Pre-tax transportation fringe benefit” is defined by reference to federal Internal Revenue Code section 132(f)(1)(A), (B), and (D) and must be provided at the maximum benefit levels allowable under federal law.
- Employer mandate
- Applies to every employer in Massachusetts that employs at least 50 persons.
- Employers must offer to all their employees who are not covered by a collective bargaining agreement (CBA) the opportunity to utilize a pre-tax transportation fringe benefit.
- It does not prohibit inclusion of such benefits through collective bargaining for employees covered by CBAs.
- Penalties for noncompliance
- $100 fine for a first violation.
- $250 fine for each subsequent month the employer fails to offer the benefit.
- A fine may not be imposed on the same employer more than once in a single month.
- Implementation, outreach, and enforcement
- The Department of Revenue (DOR) must run a public multilingual awareness campaign (in conjunction with the MBTA) to encourage the public to contact employers about these benefits and coordinate with regional planning agencies, transportation management associations, regional transportation authorities, chambers of commerce, and transit providers.
- DOR must prepare and distribute model multilingual written materials employers can use to notify employees.
- The DOR commissioner must adopt regulations to ensure compliance and establish a confidential reporting process for employees and others to report non-compliant employers.
- Effective date
- Subsection (c) (the penalty provisions) takes effect one year after the act’s passage.
Who is affected
- Employers: Those with 50 or more employees in Massachusetts will need to offer the pre-tax commuter benefit option to non-union employees; employers must track compliance and may face fines for violations.
- Employees: Workers not covered by collective bargaining agreements gain access to pre-tax commuter benefits that can reduce taxable income and commuting costs.
- Government/administrative bodies: DOR (rules, enforcement, outreach), the MBTA and regional transportation partners (coordination and public awareness).
- Unions and collectively bargained employees: Not required to be offered by employers under this section, but benefits may be negotiated into CBAs.
Potential impacts and considerations
- Financial impacts: Direct costs to employers for administrative setup and outreach; possible fine exposure for noncompliance. Potential tax savings for participating employees and modest administrative burdens for DOR and transit partners.
- Equity and access: Multilingual outreach aims to increase access among non-English-speaking workers.
- Interaction with federal law: Benefits must conform to federal IRC §132(f) limits (amounts set by federal law).
- Enforcement practicalities: The bill vests rulemaking and confidential reporting authority in DOR, which will determine enforcement mechanics.
Procedural status (from provided records)
- Filed 1/15/2025 as Senate No. 1345 (sponsored in the bill text by Sen. John F. Keenan and petitioners listed).
- Referred to the committee on Labor and Workforce Development (per bill text context).
- The metadata you provided lists several other committee referrals and hearing dates; those records appear inconsistent. Confirm current status on the Massachusetts Legislature’s official website for updates (committee reports, floor action, amendments).
Compiled from official sources — confirm details with the bill’s official record.
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