San Francisco HCSO Rates for 2019

The San Francisco Health Care Security Ordinance (HCSO) requires covered employers to satisfy an employer spending requirement by making health care expenditures for their covered employees, among other reporting and notice requirements. The health care expenditure rate varies depending on the size of the employer and increases incrementally each year.

As of Jan. 1, 2019, the health care expenditure rate for large employers with 100 or more employees increases to $2.93 per hour payable (up from $2.83 per hour in 2018). For medium-sized employers with 20 to 99 employees and for nonprofit employers with 50 to 99 employees, the expenditure rate will rise to $1.95 per hour payable (up from $1.89 per hour payable in 2018). Employers with fewer than 20 employees and nonprofit employers with fewer than 50 employees are exempt.

If an employee is a managerial, supervisorial or confidential employee earning $100,796 per year ($48.46 per hour) or more, that employee is exempt from the HCSO. This represents an increase from last year’s threshold of $97,693 per year ($46.97/hour).

All covered employers are required to post the revised notice by Jan. 1, 2019, in all workplaces and job sites. The revised notice is not yet available. Please look for it in a future edition of Compliance Corner.

2019 HCSO Announcement »