The Bay Area Commuter Benefits Progra
m's jurisdiction covers the nine counties of the San Francisco Bay Area: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma (primarily southern/western parts), requiring employers with 50+ full-time employees in these areas to offer commuter benefits to reduce traffic and pollution. Administered by the Metropolitan Transportation Commission (MTC) and the Bay Area Air Quality Management District (BAAQMD), it aims to encourage transit, carpooling, and telework. There are five (5) Commuter Benefit Options, an Employer need not offer all of them, but they must show that employees were notified of the options that are offered on an annual basis. Also, San Fracisco (City and County), SFO Airport, City of Berkley and Richmond have their own independent requirements that apply to either 10 or 20 employees.
There are a few rules:
The Bay Area Commuter Benefits Program's (BACBP) requires employers with 50 or more full-time employees in the Bay Area to:
- Select one (or more) of the five commuter benefits options.
- Designate a primary and secondary Commuter Benefits Coordinator.
- Register your benefit plan on the commuter benefits program webpage.
- Notify employees of the commuter benefit option(s) selected and provide information on how to take advantage of it. The benefit applies to all employes who work 20 or more hours a week, and not designated as seasonal or temporary.
- Maintain records to document implementation of the commuter benefit (including records of how the commuter benefit option(s) has been implemented, promoted, and made available to employees, including and when the employees were notified of the commuter benefit).
- Provide information to the Air District/ MTC upon request for program evaluation purposes.
- Update registration annually to indicate any changes to your program.
5 Options for a Commuter Benefits Program
Below are options for a Bay Area Commuter Benefits Program. Employers are required to select at least one but can offer multiple.
- Option 1: Pre-tax option: Allowing covered employees to elect to exclude from taxable wages costs incurred for transit passes or vanpool charges, up to the maximum amount allowed by federal tax law.
- Option 2: Employer-paid benefit: Employer offers employees a subsidy to offset the monthly cost of commuting via transit or by vanpool. The amount that qualifies will be set by the Air Pollution Management Control Officer (APCO) shall annually adjust this amount consistent with the California Consumer Price Index for San Francisco-Oakland-San Jose. An employer may also elect to provide a subsidy for bicycle commuting costs in addition to subsidies for transit and vanpool costs.
- Option 3: Employer-provided transit: Transportation furnished by the employer at no cost, or low cost as determined by the APCO, to employees in a vanpool or bus, or similar multi-passenger vehicle operated by or for the employer. Employers are allowed to charge a minimal fee for transportation. The short distance transportation can be a maximum of $2.00 per employee for a one-way trip and long distance transportation is a maximum of $0.20 per mile for a one-way trip.
- Option 4: Alternative Commuter Benefit: Provide your employees with an alternative commuter benefit that reduces single occupancy commuting and encourages a mix of program options including transit, biking, carpool, and limited telework. An Employer can elect either under 4A: primary plus at least two secondary (or primary) measures from the table below or 4B: Employer selects at least four secondary (or primary) measures from the table below. The guide will walk you through what to do as linked below.
- Option 5: Telework: Provide a company-wide telework policy permitting telework one or more days a week for all employees whose assignments can be performed remotely.
As noted, Employers are not required to provide all 5 options, but they required to provide a benefit to Employees that is geared towards the goal of reducing traffic congestion.
Employee Measurements for Commuter Benefits Program
The threshold of 50 or more full-time employees is based on the total number of employees at all Bay Area worksites combined.
Penalties for Non-Compliance of the Bay Area Commuter Benefits Program
The Air District has the authority to impose financial penalties on noncompliant employers as authorized by the California Health & Safety Code Section 65081. Before moving to the enforcement phase, the Air District will contact the employer directly with registration reminders that outline program requirements.
IRS Tax Limits for the Commuter Benefit Program
The 2026 Commuter Benefit Program has an increased IRS-set monthly limit of $340 for both transit (e.g., bus, subway, train, ferry, vanpool, etc.) and parking reimbursements.
Bay Area Commuter Benefits Program's Registration Rules
The window for annual renewal begins 12 months after an employer initially registers with BACBP. This means that the annual renewal date is different for each employer. When the annual renewal window opens for each employer, they will receive the first renewal email notification. It is important that the email and phone contact information for your Benefits Coordinator(s) are always up to date on your registration form. Once the annual renewal window opens, employers have 30 days to update their registration and indicate any changes to their commuter benefits program. Additional email reminders will be issued 60 and 90-days after the renewal window opens.
Bay Area Commuter Benefits Program Resources
A comprehensive list of vendors providing commuter benefit services for employers to contact directly is available at www.511.org/CommuterBenefitsProgram.
The Employer Guide is an excellent resource and can be found here https://511.org/employers/commuter-benefits-program.
If you have any questions about the commuter benefits program or other matters, please contact Christine Long at 408.286.5800 or christine.long@berliner.com.