The proposed bill establishes the "Commuter Transportation Benefits Act" as a new chapter in Title 28 of the General Laws, which pertains to labor and labor relations. Under this act, employers with five hundred (500) or more employees are required to offer a pre-tax transportation fringe benefit program that provides commuter transit benefits in accordance with federal law. The act defines key terms such as "covered employer," "employee," and "pre-tax transportation fringe benefit," and outlines the responsibilities of the director of the department of labor and training to promulgate necessary rules and regulations.

The bill specifies exemptions from this requirement for certain entities, including the federal government, the State of Rhode Island, local governments, and any group of employees covered by a collective bargaining agreement in effect on January 1, 2026, until the expiration of that agreement. Additionally, employers who can demonstrate to the satisfaction of the director that offering such benefits would result in severe financial hardship may also be exempt.

Violations of the act would incur civil penalties, with a structured timeline for compliance before penalties are imposed. Specifically, an employer found in violation would be liable for a civil penalty of not less than one hundred dollars ($100) and not more than two hundred fifty dollars ($250) for a first violation, with additional penalties for subsequent violations. The act also includes provisions for a public awareness campaign conducted by the department of transportation, in conjunction with the department of labor and training, to encourage the public to contact employers about commuter transportation benefits. The act is set to take effect on January 1, 2026.