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Employers With San Francisco Employees Must Comply With Citys New Health Care Spending Ordinance Despite Legal Challenge

February 20, 2008

By Maureen K. Bogue and Thomas E. Geidt

The San Francisco Health Care Security Ordinance (HCSO) went into effect on January 9, 2008, despite the continuing legal battle over the Ordinances validity. All covered employers with 50 or more employees, wherever located, now must satisfy HCSOs requirements for their San Francisco employees. Covered for-profit employers with 20-49 employees must comply with HCSO effective April 1, 2008. Compliance with HCSO is not limited to San Francisco businesses, but extends to any covered employer that has San Francisco workers. The Ordinance mandates that covered employers make qualifying health care expenditures in certain minimum amounts, on a quarterly basis, for each covered employee.