December 12, 2017
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. For more information on what constitutes covered employers/covered employees, please visit the San Francisco HCSO website link below.
The health care expenditure rate varies depending on the size of the employer and increases incrementally each year. As of Jan. 1, 2018, the health care expenditure rate for large employers with 100 or more employees increases to $2.83 per hour payable (up from $2.64 per hour in 2017). For medium-sized employers with 20 to 99 employees and for nonprofit employers with 50 to 99 employees, the expenditure rate will rise to $1.89 per hour payable (up from $1.76 per hour payable in 2017). 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 $97,693 per year ($46.97 per hour) or more, that employee is exempt from the HCSO. This represents an increase from last year’s threshold of $95,101 per year ($45.72/hour).
All covered employers are required to post the new notice by Jan. 1, 2018, in all workplaces and job sites.
HCSO 2018 Rates » HCSO 2018 Poster »