Protecting Employers Since 1985

Attention Illinois Companies: Illinois Law Requires Pre-Tax Commuting Benefit Program for Workers in Cook County and Other Counties and Townships

Effective: January 1, 2024, the Illinois Transportation Benefits Program Act went into effect.

NOTE: Employer only establishes the program. Employer does NOT pay the cost of the transit benefit.

Covered Employee: Any person who performs an average of at least 35 hours of work per week for compensation on a full-time basis.  Employees have the option of participating in this benefit program. (Note: any person seems to include independent contractors.)

Covered Employers: Any individual, partnership, association, corporation, limited liability, government, non-profit organization or business trust that directly or indirectly or through an agent or any other person, employee or exercises control over wages, hours, or working conditions of an employee, and that;

  • Is located in:   (READ MORE HERE)
    • Cook County
    • Lake County
      • Grant Township
      • Warren Township
    • Will County
      • Frankfort Township
      • Wheatland Township
    • Also
      • Addison
      • Bloomingdale Township
      • York Township
      • Milton Township
      • Winfield Township
      • Downers Grove Township
      • Lisle Township
      • Naperville Township
      • Dundee Township
      • Elgin Township
      • St. Charles Township
      • Geneva Township
      • Batavia Township
      • Aurora Township
      • Zion Township
      • Benton Township
      • Avon Township
      • Libertyville Township
      • Shields Township
      • Vernon Township
      • West Deerfield Township
      • Deerfield Township
      • McHenry Township
      • Nonda Township
      • Algonquin Township
      • DuPage Township
      • Homer Township
      • Lockport Township
      • Plainfield Township
      • New Lenox Township
      • Joliet Township
      • Troy Township

  • Employs 50 or more covered employees at an address in one of the geographic area specified above, at an address within one mile of fixed-route transit service

NOTE – Public Transit: Any transportation system with the authority and jurisdiction of the Regional Transportation Authority

NOTE – Transit Pass: Any pass, token, fare card, voucher, or similar item entitling a person to transportation or public transit.

Benefits Required: A pre-tax commuter benefit program to allow covered employees to use pre-tax dollars for the purchase of a transit pass, via payroll deductions.

Benefits Program Waiting Period: On the employee’s first full pay period after 120 days of employment. 

Not Covered Under the Law: Employees covered under a collective bargaining agreement on January 1, 2024. After January 1, 2024, the law may be waived in a bona fide collective bargaining agreement, but only if the waiver is set forth explicitly in such agreement in clear and unambiguous terms.

How to Prepare for New Law:

  • Check with your accountant for advice on the Transportation Benefits Program.
  • Check with your payroll service and establish an employee pre-tax deduction for benefit.

If you have any questions, please contact Tony Caruso by email or at 630-377-1554

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