Rhode Island 2026 Regular Session

Rhode Island Senate Bill S2323

Introduced
1/23/26  

Caption

RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER, TRANSPORTATION BENEFITS ACT

Impact

If enacted, S2323 would significantly change the landscape of employee benefits in Rhode Island, specifically targeting large employers. It would create a standardized requirement across the state for certain employers, thereby potentially increasing the number of employees benefiting from tax deductions related to commuting. The bill is designed to enhance public transit usage, address traffic congestion, and promote environmental sustainability by making commuting more cost-effective for employees.

Summary

Senate Bill S2323, known as the Commuter Transportation Benefits Act, mandates that employers with five hundred or more employees offer a pre-tax transportation fringe benefit program. This legislation aims to encourage the use of public transit by allowing employees to deduct their commuter costs from their taxable income. The bill defines 'covered employers' and stipulates the conditions under which these benefits must be made available, aligning with federal tax regulations.

Contention

Notably, the bill includes exemptions for the federal government, state agencies, local governments, and certain collective bargaining agreements. This could become a point of contention as these exclusions might lead to disparities in commuter benefit availability depending on the employer type. Furthermore, the bill allows for exceptions based on financial hardship, which could be argued by employers wishing to avoid the mandated benefits. Critics may view these regulations as burdensome for larger organizations that may already offer various commuting benefits.

Enforcement

To ensure compliance, S2323 sets out penalties for employers who fail to provide the required benefits. A first violation can incur a civil penalty ranging from $100 to $250, with additional fines for continued non-compliance. The establishment of a public awareness campaign by the Department of Transportation and the Department of Labor and Training is also planned to promote these benefits and ensure that employees are informed about their rights regarding commuting transport benefits.

Companion Bills

No companion bills found.

Previously Filed As

RI S0382

Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees would be required to establish a pre-tax commuter transportation fringe benefit program.

RI H5304

Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees would be required to establish a pre-tax commuter transportation fringe benefit program.

RI S0414

Permits paid members on the state labor relations board to continue to receive their retirement benefits.

RI S0587

Allows unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute.

RI H5680

Allows unemployment benefits for workers who are on strike or are locked out of their workplaces by their employer due to a labor dispute.

RI H5763

Allows any retired member of the state retirement system to serve as a member of the state labor relations board.

RI S0951

Establishes the Rhode Island state crime laboratory within the department of attorney general.

RI H6229

Establishes the Rhode Island state crime laboratory within the department of attorney general.

RI S0309

Gives authority to the department of labor and training to enforce violations of the laws relating to corrosion prevention and mitigation work requirements. This act would also add civil monetary penalties for violations of those laws.

RI S0744

Gives authority to the department of labor and training to enforce violations of the laws relating to corrosion prevention and mitigation work requirements. It also adds civil monetary penalties for violations of those laws.

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