Navigating the Compliance Maze: How Modern Commuter Benefits Solutions Simplify Regulatory Mandates

Managing compliance for commuter benefits has become increasingly complex across different regions—this post explains how Fleet helps companies navigate varying requirements while reducing administrative burden.

The Fleet Team
June 10, 2025

The Growing Compliance Challenge

For HR and benefits teams across the US, commuter benefits compliance has become increasingly complex. Local jurisdictions nationwide are implementing mandatory ordinances with varying requirements, thresholds, and penalties.

For a comprehensive guide to current compliance requirements, visit our dedicated compliance resource page.

What Are Commuter Benefits?

Commuter benefits are employer-provided programs that allow employees to use pre-tax dollars for qualified commuting expenses like public transit and parking. While optional in most areas, these IRS-approved benefits (Section 132(f)) are now legally mandated for employers of certain sizes in several major metropolitan regions across the US.

Regional Compliance at a Glance

The compliance landscape varies dramatically by region:

50+ employees:

  • Bay Area (regional mandate)
  • Philadelphia
  • Los Angeles
  • Illinois

20+ employees:

  • San Francisco (city-specific mandate)
  • Seattle
  • New York City
  • New Jersey
  • Washington, DC

10+ employees:

  • Berkeley
  • Richmond

Non-compliance penalties vary significantly by jurisdiction, with fines ranging from $100 for minor violations to thousands of dollars per day for ongoing non-compliance in some regions.

The Modern Approach to Compliance

At Fleet, we’ve built our platform with compliance at its core, featuring:

  • Continuous enrollment: Automatically identify eligible employees based on work location
  • Documentation automation: Generate and store all required compliance documentation
  • Regulatory monitoring: Proactive alerts about changing regulations
  • Specialized support: Experts who understand local ordinances

This approach saves customers an average of 30+ hours monthly in administrative time.

Beyond Compliance: The Business Impact

Streamlined compliance creates measurable business outcomes:

  • Reduced administrative costs
  • Elimination of potential penalties
  • Improved employee satisfaction with simpler benefits enrollment
  • Better data for sustainability reporting

As workplace transportation policies evolve, Fleet’s compliance-first approach ensures you’re not just checking regulatory boxes—you’re creating a better commuter experience while reducing administrative burden.

Ready to simplify your commuter benefits compliance? Book time with our compliance experts today to learn how Fleet can help you navigate regional requirements while saving 30+ hours of administrative time monthly.