Health Care Compliance Bulletin: SAN FRANCISCO HEALTH CARE SECURITY ORDINANCE

OVERVIEW

Under San Francisco’s Health Care Security Ordinance (HCSO), covered employers are required to spend a minimum amount of money on health care benefits for their covered employees. Specifically, covered employers must:

  • Satisfy an employer spending requirement by making health care expenditures on behalf of covered employees;
  • Maintain sufficient records to show compliance with the employer spending requirement;
  • Post an HCSO Notice at sites with covered employees; and
  • Submit an Annual Reporting Form to the Office of Labor Standards Enforcement (OLSE) by April 30 of each year
ACTION STEPS

The HCSO generally applies to for-profit businesses with 20 or more employees and nonprofit businesses with 50 or more employees. The HCSO generally took effect on Jan. 9, 2008, but was amended in 2014 to phase out the use of revocable health care expenditures. Final revised HCSO regulations took effect on Oct. 29, 2017. The OLSE also maintains a webpage on the HCSO.

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