“Dear Valued TransitChek® Customer,

On September 15th we sent you a communication about the impending reduction of the current pretax transit benefit cap from its current level of $230 per month to its previous level of $120 per month if Congress does not act before December 31, 2011.

TransitCenter is working to make these changes seamless for you and your employees. Below are the steps we are taking on November 30 to ensure a smooth transition to a new transit cap:

• For employees enrolled for the TransitChek Premium MetroCard® – No change
• For employees enrolled for CashBack and Vouchers, TransitCenter will automatically decrease monthly transit benefits higher than $120, down to $120 for the January benefit month.
• For employees enrolled for the TransitChek QuickPay® Prepaid Visa® Card, there is no change if their pretax benefit is $120 or less. If their pretax benefit is in excess of $120, TransitCenter will automatically decrease the pretax portion to $120 and create or increase the post-tax amount accordingly, to ensure the total contribution stays the same.

REMINDER: You will need to make the corresponding changes, if necessary, to the amounts you deduct from your employees’ paychecks on a pretax and post-tax basis starting with the January benefit month.

Please understand that if the pretax cap is reduced to $120, you may not deduct more than $120 pretax for the January benefit month even if that deduction is taken in 2011. The change in the cap does not affect the amount you may deduct on a post-tax basis.

Employees should not make any changes to their benefit amount due to changes in the pretax cap. TransitCenter will make all necessary changes automatically.

Please note that the $230 pretax parking benefit cap is not affected so no changes are required.

We will continue to keep you informed of any cap changes. If you have any questions or need help with your order, please contact Administrator Support at 1.866.550.CHEK (2435). To learn more about the $230 transit benefit cap, visit www.commuterbenefitsworkforus.com .

Thank you for your continued participation in the TransitChek program and for supporting your employees’ daily commute.”

“Dear Valued TransitChek Customer,

As I mentioned in our last $230 Cap update, TransitCenter along with a coalition of firms that support commuter benefits, and commuter advocates, have united in an effort to protect the cap. Without Congressional action, the current $230 per month pretax transit benefit will be reduced to $120 per month.

Today, I am pleased to announce the launch of a new website – http://www.commuterbenefitsworkforus.com - enabling you to show your support for maintaining the current $230 per month transit benefit cap. We’re asking you to add your name to the tens of thousands of others urging their Members of Congress to enact legislation that will maintain the transit benefit at its current level. Your support will help ensure that you and your employees continue to receive the maximum amount of savings commuter benefits currently offer.

Commuter benefits have joined health, retirement and disability at the top of the list of important voluntary benefits offered by companies. Since millions of Americans who participate in a commuter benefit program will be affected, Congress needs to act now.

Thank you for your support. We will continue to bring you updates on the status of the $230 Cap and what actions, if any, you need to take.”

“As your commuter benefits provider, we want to remind you of an upcoming fare change that will affect commuting costs for some of your employees.

New fares for the Port Authority of New York and New Jersey (PATH) will go into effect on September 18, 2011.

Below is a list of the new PATH fares:

• 2-trip $4.00
• 10-trip $15.00
• 20-trip $30.00
• 40-trip $60.00
• 30-Day pass $65.00
• 7-Day pass $21.00
• 1-Day pass $6.25
• Senior $1.00

Employees can find complete fare information on the PATH website at http://www.panynj.gov/port-authority-ny-nj.html .

Affected employees can update their TransitChek benefits or enroll in the program by:

1. Downloading the TransitChek Mobile app on their smart device and going to the “Change Benefit” screen to update your benefit amount.

2. Logging into their account online at https://tams.transitcenter.com/login.aspx .

3. Calling 1.888.618.CHEK (2435).

Changes made before September 30th will go into effect for their November benefit.

If you have any questions or concerns, please call TransitChek Customer Service at 1.866.550-CHEK (2435).”

Effective April 9, 2011, New York employers must provide a notice to all new hires containing the following information:  rate of pay, overtime rate for hourly employees, pay frequency, any allowances taken against the minimum wage (tips, meals, lodging, etc.), exempt or non-exempt status. In addition, the notice must include the company name and any other names used, as well as the phone number, physical address of the company’s main office and mailing address if different.

• The most noticeable aspect of the law is that these notices must be provided in the employees’ primary language. To assist employers in complying with the law, the New York State Commissioner is in the process of preparing the templates to be used, along with the appropriate translations.   The Commissioner has determined that the notices will be prepared in English, Haitian-Creole, Spanish, Chinese, Korean, Polish and Russian.  If an employee identifies any other language as his/her primary language, the employer is only required to provide the English version of the document.
•  The first of the forms, in English, Chinese, Spanish and Korean, were just released, and they are accessible to employers through the state’s website.  We anticipate that the rest will be made available prior to April 9. 
•  Also, please be advised that these forms must be completed and distributed to any employee seven (7) days in advance of any change in the information contained in the notice, i.e. exempt status or pay rate.
• Between January 1 and February 1, 2012, and each year thereafter, employers are required to provide these notices to all employees. 
•  Lastly, the new law enhances the penalties New York State employers face if they fail to comply with The Wage Theft Prevention Act; they can easily range into the thousands of dollars.  Employers are liable for unpaid wages plus interest and attorney fees, but up to 100% of unpaid wages can also be awarded as liquidated damages.

New York employers should review their new hire documentation to ensure compliance with these new regulations.

For more information, please go to the State of New York’s Frequently Asked Questions section of their website.

Last year, the State legislature required employers to furnish new hires with information concerning their exempt status, pay information, vacation and holiday time granted, if any.  The new law expands that by requiring employers to notify their employees of how they are being paid, i.e. hourly, salary, commission, etc., and whether the employer will claim allowances, such as tips, meals or travelling expenses, against their wage.  Also new is that all employees on payroll, not just new hires, must receive this information by February 1, 2012, and each year thereafter.  The information must be provided in English and in the employee’s primary language if other than English.  Employees must sign an acknowledgement of receipt each year.

Non-exempt employees are required to receive wage statements each pay period setting forth their pay rate, basis, gross wages, deductions and net wages paid. 

An employee who does not receive this information within ten (10) business days of the date of hire may bring an action for $50 per workweek that the violation occurs, capped at $2,500. 

The penalties for violation of the Wage Theft Prevention Act have also increased significantly.  Wage violations had previously resulted in penalties of 25% of the wages due; that has increased to 100%, with the option to recover prejudgment interest and attorneys’ fees in a legal action.  Employers may be subject to penalties of up to $100 per week for failure to provide the mandatory wage statements, capped at $2,500 plus costs and attorney fees.

Lastly, an employer who is in violation of a wage law may be required to post a notice of violation, in a conspicuous place, for up to one (1) year.  If the violation was willful, the notice must be posted in an area visible to the general public for ninety (90) days.

The new law assumes a worker is a W-2 employee unless they meet all of the following criteria:  1) they are free from direction and control in performing services; 2) the service(s) being performed are outside the scope of the company; and 3) they are engaged in an independently established trade, occupation or business similar to the task or service they are providing.

The law also contains a 12-part test (see the hyperlink) to determine when a sole proprietor, partnership, corporate or other entity is a “separate business entity” from the entity for which it is providing the service.  All 12 items must apply for the entity to be deemed separate.

Violations of the Fair Play Act will result in significant penalties.  Employers will be assessed $2,500 per employee for a first violation and $5,000 for any subsequent violations.  Employers can also be subject to criminal prosecution with up to thirty (30) days in jail, up to a $25,000 fine and debarment from Public Work for up to one year for a first offense.  Subsequent offenses could result in sixty (60) days in jail, up to a $50,000 fine and up to a 5-year debarment. 

Employers must post a notice about the Fair Play Act in a conspicuous place in the workplace within thirty (30) days of the effective date of the new law.  Failure to post can result in a fine of $1,500 for a first offense and up to $5,000 for a second offense.

Employers are not required to pay workers for taking breaks unless otherwise mandated by state and/or federal law.  Generally, breaks over 20 minutes need not be compensated.  Employees with less than fifty (50) employees need not comply with the new regulation if it causes “undue hardship,” causing the employer significant difficulty or expense to comply. 

This legislation does not preclude state laws that offer greater protections for employees.

Employers would be required to provide written notice to those employees they have identified as independent contractors, which includes 1) their classification; 2) the Department of Labor (DOL)’s website established for providing additional information about employees’ rights; 3) address and telephone of their local DOL office; and 4) any additional information as required.

The EMPA would ensure that employers keep accurate records classifying each worker accordingly, and would increase penalties for noncompliance.  It would also provide protections to workers who are discriminated against because they have asked to be accurately classified.  For any infraction, employers could be fined up to $1,100 per day per employee, up to $5,000 per employee per day for repeated violations, and liquidated damages.

Lastly, the EMPA would enhance state and federal efforts to combat misclassification by mandating DOL-monitored state audits, increasing state penalties, providing a mechanism for the DOL and Internal Revenue Service to refer incidents between each other, and directing the DOL to perform audits on “frequent offender” industries.

In addition to the federal proposed legislation, many states, including New York, New Jersey, Connecticut, Nebraska and Ohio are strengthening state legislation on their own.