The San Francisco Health Care Security Ordinance (HCSO) requires that any employer (not meeting the small group exception) pay a predetermined dollar amount towards the health care of their employees. If you have any full-time or part-time employees working in San Francisco or you are contracted to do business in San Francisco, you are required to comply with the HCSO.
The following items are required by all covered employers with non-compliance resulting in a financial penalty:
Annual Reporting Form - Submission Required by April 30, 2013
Covered employers are required to complete and submit the Annual Reporting Form each year. The form is now available on the HCSO website for covered employers to complete and submit.
Employer Spending Requirement
Employers must satisfy the following 2013 health care spending requirement for employees who have been employed for more than 90 days and who work at least 8 hours a week in San Francisco.
Review the 2013 Employer Spending Requirement here.
Annual Waiver Form - Required by Every Covered Employee Waiving Coverage
Covered employees receiving medical benefits from another employer and choose to waive the health reimbursement benefit are required to complete the Employee Voluntary Waiver. Third-party vendor waiver forms (such as health carrier waiver forms) are not compliant. Employees must complete a new waiver every year.
Notice Requirement to Every Covered Employee - New 2013 Notice
Covered employers must post the Official OLSE Notice in a common area in every work place or job site where a covered employee works. The notice comes in different languages so employers can comply with language requirements.
Penalties of Non-Compliance
Background Information on the HCSO
- $100 per employee per quarter when an employer does not make the required health care expenditure within five business days of the quarterly due date
- $500 per quarter for failing to maintain or retain accurate and adequate records
- $500 per quarter for failing to submit the annual reporting information
- $25 per day per covered employee for failing to post the OLSE Notice
Employers who engage in business within San Francisco and have 20 or more employees (50 or more employees for non-profits) are subject to this ordinance. This includes employers who are based outside of San Francisco or simply contract to do business within San Francisco. When counting total employees, you need to count all full-time and part-time employees and not just employees working in San Francisco.