What happened?

Depending on size, employers must make a “contribution” to medical expenses. 

What are the details?

Applicability

• Covered Employer Definition.
• How to Determine Employer Size.

Under the Health Care Security Ordinance (HCSO), all covered employers must comply with the following obligations:

• Satisfy the Employer Spending Requirement by making required healthcare expenditures every quarter on behalf of all covered employees.
  • Check the employer expenditure rate table for current rates.
  • Covered employees are those who have been employed for more than 90 days and who work at least 8 hours per week in San Francisco.

• Maintain records to show that you comply with HCSO.

• Post the 2024 HCSO Poster in all workplaces with covered employees.

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

Employers covered under the HCSO and/or FCO are required to submit the Employer Annual Reporting Form to OLSE each year.

Depending on employers’ size, they must make a contribution towards medical expenses, which can be found for 2024 here.

Business Considerations

• Determine whether you meet the definition of a covered employer to know if the law applies to you.
• If you are a covered employer, audit your policies and practices to comply with the requirements. 
• Ensure you prepare and schedule to meet the annual reporting deadline.
• Budget the contributions you are required to make. 
• Choose how you want to spend the money on health care for your employees (see: Compliance Options).

Resources 

• Health Care Security Ordinance
• 2024 HCSO Poster
• Reminder: San Francisco, California, Employer Annual Reporting Form Due for 2024 (VensureHR)
• HCSO Administrative Guidance

Source References

• San Francisco Labor Laws

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