Insights

Transportation Program Requirements for Employers


By January 15, 2023, certain Washington, DC employers must report their compliance with the DC Parking Cashout Law of 2020. The reporting will cover future compliance. When available, the report templates will be available on the District Department of Transportation website.

The Cashout Law applies to employers with 20 or more employees in the district who offer free or subsidized parking benefits to employees. To comply, covered employers must implement one of the following compliance options:

  • Offer a Clean Air Transportation Fringe Benefit. Offer the equivalent value in benefits to covered employees who do not drive to work in the form of a transit subsidy, increased compensation, and/or a healthcare contribution.
  • Implement a transportation demand management (TDM) plan. Create a District Department of Transportation (DDOT)-approved TDM plan and reduce employees’ commuter trips made by car by at least 10% year over year until 25% or less of employees’ commuter trips are made by car.
  • Pay a Clean Air Compliance fee to DDOT. Pay $100 per employee per month for employees offered a parking benefit.

Please note that the Cashout Law is in addition to the Employer Commuter Requirement. Since January 1, 2016, employers with 20 or more employees in DC must offer access to one or more of the transit benefit options. All employees working 50% or more of their service time in DC are counted in the following transit benefit options:

  • Employee pays pre-tax contributions for transit benefits.
  • Employer pays transit benefit costs for employees (either through reimbursement or the provision of pre-paid metro cards).
  • Employer provides transportation through a shuttle or vanpool.

To comply, employers must:

  • Notify employees of the available transit benefit program.
  • Provide information to covered employees on how to apply and receive benefits.
  • Issue benefits to covered employees who request or apply for them.
  • Maintain records to establish compliance with the requirements.
  • Record that notice was given to employees.
  • Provide records showing that elected benefits were provided.

DC employers should review both sets of requirements and comply as necessary.

Cashout Law Information and Reporting »
Employer Commuter Benefits Toolkit »