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SF5278 • 2026

Covered employers providing commuter benefits to covered employees requirement provision

Covered employers providing commuter benefits to covered employees requirement provision

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
McEwen, Dibble, Boldon
Last action
2026-05-12
Official status
Author added Boldon
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Covered employers providing commuter benefits to covered employees requirement provision

Covered employers providing commuter benefits to covered employees requirement provision

What This Bill Does

  • Covered employers providing commuter benefits to covered employees requirement provision

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-12 House

    Author added Boldon

  2. 2026-05-11 House

    Introduction and first reading

Official Summary Text

Covered employers providing commuter benefits to covered employees requirement provision

Current Bill Text

Read the full stored bill text
A bill for an act

relating to employment; requiring covered employers to provide commuter benefits

to covered employees; proposing coding for new law in Minnesota Statutes, chapter

181.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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[181.9449] COMMUTER BENEFITS.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Covered employee" means any person who performs an average of at least 35 hours

of work per week, on a full-time basis, for compensation by a covered employer.

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(c) "Covered employer" means any individual, partnership, association, corporation,

limited liability company, nonprofit organization, business trust, state, county, town, city,

school district, or other political subdivision that directly or indirectly, or through an agent

or any other person, employs or exercises control over wages, hours, or working conditions

of an employee and that:

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(1) is located in a city of the first class; and

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(2) employs 50 or more employees in a geographic area specified in clause (1) at an

address that is located within one mile of a regular route transit service.

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(d) "Public transit" or "transit" has the meaning given in section 174.22, subdivision 7.

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(e) "Regular route transit" has the meaning given in section 174.22, subdivision 8.

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(f) "Transit pass" means any pass, token, fare card, voucher, or similar item entitling a

person to transportation on public transit.

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Subd. 2.

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Commuter benefit program.

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(a) A covered employer must provide a pretax

commuter benefit to covered employees. The pretax commuter benefit must allow employees

to use pretax dollars for the purchase of a transit pass via payroll deduction, so that the costs

for the purchase are excluded from the employee's taxable wages and compensation up to

the maximum amount permitted by federal tax law, consistent with United States Code,

title 26, section 132(f), and any corresponding rules and regulations. A covered employer

may comply with this subdivision by participating in a program offered by the Metropolitan

Council, a replacement service provider under section 473.388, or other transit authority or

responsible governing body in a city of the first class, as applicable.

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(b) All covered employers may also provide employer-sponsored transit programs or

subsidies for qualified transportation expenses, including but not limited to reimbursements

for walking, biking, and carpooling or vanpooling.

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(c) This benefit must be offered to all employees beginning with the employee's first

full pay period after 120 days of employment. All transit authorities and metropolitan

planning organizations must market the existence of this program and the requirements

under this section to riders to inform affected employees and employers.

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Subd. 3.

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Covered employers map.

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The Metropolitan Council and other transit authority

or responsible governing body in a city of the first class, as applicable, must make publicly

available a searchable map of addresses that are located within one mile of regular route

transit.

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Subd. 4.

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Application.

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Nothing in this section shall be deemed to interfere with, impede,

or in any way diminish the right of employees to bargain collectively with their employers

through representatives of their own choosing in order to establish wages or other conditions

of work in excess of the applicable minimum standards provided in this section. Nothing

in this section shall be deemed to affect the validity or change the terms of a bona fide

collective bargaining agreement in force on the effective date of this section. After the

effective date of this section, the requirements under this section may be waived in a bona

fide collective bargaining agreement, but only if the waiver is set forth explicitly in the

agreement in clear and unambiguous terms.

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EFFECTIVE DATE.

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This section is effective ......

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