Compliance Update

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The San Francisco Board of Supervisors passed an amendment to the Health Care Security Ordinance on June 17, 2014. The amendment phases in (over 3 years) a requirement that all heath care expenditures be made irrevocably and makes other changes to the HCSO. For more information, see the HCSO amendment as passed.

Health Care Expenditure Rates for 2015 are now available. As of January 1, 2015 the health care expenditure rate for large businesses (100 or more employees total) will be $2.48 per hour, and the rate for medium-sized businesses (20-99 employees total) is $1.65 per hour.
Under the Health Care Security Ordinance (HCSO), all covered employers must meet the following obligations:
1. Satisfy the Employer Spending Requirement by making required health care expenditures on behalf of all covered employees (those who have been employed for more than 90 days and who regularly work at least 8 hours per week in San Francisco) at the following rates:
Employer Size
 Number of Employees 2014 Expenditure Rate 2015 Expenditure Rate
Large All employers w/100+ employees $2.44 per hour payable $2.48 per hour payable
Medium Businesses w/20-99 employees
Nonprofits w/50-99 employees
$1.63 per hour payable
$1.65 per hour payable
Small Businesses w/0-19 employees
Nonprofits w/0-49 employees
Exempt Exempt

2. Maintain records sufficient to establish compliance with the employer spending requirement.

3. Post an HCSO Notice in all workplaces with covered employees.

4. Submit an Annual Reporting Form to the OLSE by April 30th of each year.

For details about these and other requirements, Frequently Asked Questions, or other resources, please visit the San Francisco government website at

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