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Tuesday, September 02, 2008

Mayor Mandate?

San Francisco Mayor Gavin Newsom continues his mandate march on business. The city was the first government entity in the nation to mandate paid sick leave for employees, and now a new law he just signed requires employers “to offer employees at least one of three commuter benefit options,” according to an article in this week’s edition of Workforce Week Management enews (www.workforce.com). Mayor Newsom also made national headlines a couple of years ago when he signed a play-or-pay health care mandate on businesses.

(To read the full article in Workforce Week please visit:
http://www.workforce.com/section/00/article/25/73/33.php)

The purpose behind the new commuter benefit mandate is to reduce greenhouse-gas emissions.

In complying with the mandate, businesses can choose three transit options. Here are the details according to the article:

-- “Set up a program under which employees can make pretax contributions to the federal legal limit of $115 a month to pay for mass transit expenses. That option is expected to be the one most likely to be offered by employers."

-- “Employers can directly pay for employees’ transportation expenses, such as buying transit passes for employees."

-- “Employers can furnish transportation by setting up van pools for employees.The ordinance, which will take effect in late December, will apply to employers with at least 20 employees and will have to be offered to employees who work an average of at least 10 hours per week.”

The law applies to businesses with 20 or more employees (including part-time and contract workers), and takes effect in late December.

Karen Kerrigan
President & CEO

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