DC Transportation Benefits Equity Law

Beginning January 15, 2023, some employers will need to comply with the District of Columbia’s Transportation Benefits Equity Amendment Act of 2020.  This Amendment Act is also known as the ‘Parking Cash Out Law’.

Who has to participate in this new law?

• D.C. employers with at least 20 employees, located in Washington, DC who offer free or subsidized leased parking benefits

When is the new Law effective?

• Effective date is January 15, 2023, or the end of an employer’s parking lease, whichever is later.

The Parking Cash Out law requires employers, with at least 20 employees, offering a parking benefit to also do one of the following.

• Offer a Clean Air Transportation Fringe Benefit for transportation to and from work such as Metro, bus, vanpool, or bicycling
• Pay a Clear Air Compliance fee of $100/month for each employee offered a parking benefit
• Successfully implement a Transportation Demand Management Plan (TDM). The TDM is subject to the Department of Transportation’s approval.

Important Notes

• If an employee is currently participating in a parking benefit offered by the employer, the employee cannot accept the Clean Air Transportation Fringe Benefit.
• Each covered employer is required to submit a report by January 15, 2023, and every two years thereafter that must include the following information.
  • The total number of employees
  • The number of employees that are:
    • Offered a parking benefit
    • Using a parking benefit
    • Offered a Clean Air Transportation Fringe Benefit
    • Using a Clean Air Transportation Fringe Benefit, and
    • For whom the Covered Employer is paying to the Department of Transportation the $100 Clean Air Compliance Fee
• Parking benefits include employer paid or subsidized parking for an employee’s personal vehicle on site or within ½ mile of the site.

Exemptions to the New Law

The following employers are exempt from implementing one of the three Parking Cash Out Options mentioned above. However, they still must comply with the Parking Cash Out Law’s reporting requirements.

• Employers with at least 20 D.C. employees and the employer owned parking spaces used by the employees prior to October 1, 2020, and continue to own those parking spaces
• Employers with at least 20 D.C. employees and the employer leased the parking spaces used by employees prior to October 1, 2020, will have a temporary exemption until the later of a) the end of the current lease term and b) January 15, 2023.
• Employers with at least 20 D.C. employees that were subject to a TDM (reviewed by the Department of Transportation) prior to October 1, 2020, are exempt until the end of the current term of the TDM or after five years, whichever is earlier.
• Employers with at least 20 D.C. employees that were subject to a Campus Plan prior to October 1, 2020, are exempt until the end of the current term of the Campus Plan. A Campus Plan is applicable to large institutions, such as colleges and universities).

More Information

• goDCgo – Everything You Need to Know about the DC Parking Cashout Law
• D.C. Law 23-113 – Transportation Benefits Equity Amendment Act of 2020