Compliance Briefing Center

Regulatory Updates

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2014 Healthcare Expenditure Rates Just Released Under the San Francisco Healthcare Security Ordinance (HCSO)

Overview

The San Francisco Healthcare Security Ordinance (HCSO) was enacted early in 2008 to provide those individuals who work in San Francisco and qualify as an employee entitled to minimum wage with access to affordable healthcare by mandating the creation of a Health Access Program that provides services to the uninsured.

Healthcare Expenditure Rates

The HCSO requires Covered Employers to spend a minimum amount of money each quarter on their Covered Employees' healthcare. The 2014 healthcare expenditure rates have recently been released and are:

  • For large employers (100+ employees): $2.44/hour paid
  • For medium-sized employers (20-99 employees): $1.63/hour paid

These rates will take effect January 1, 2014.

Business Size (company wide)20102011201220132014
Large 100+ employees $1.96/ hr $2.06/ hr $2.20/ hr $2.33/ hr $2.44/ hr
Medium 20-99 employees $1.31/ hr $1.37/ hr $1.46/ hr $1.55/ hr $1.63/ hr
Small 1-19 employees not applicable; exempt for coverage

*Non-profits with fewer than 50 employees are exempt from the Employer Spending Requirement.

Please Note: 2014 Annual Salary Exemption figures have not been issued, thus at this time, remain unchanged from 2013. An employee who is a manager, supervisor, or confidential employee and who earns at or above an annual salary of $86,593 (or $41.63/hour) in 2013 is exempt from coverage under the HCSO. Please review Regulation 3.2(A)(1) for a detailed definition of a manager, supervisor, or confidential employee.

Additional information on the San Francisco Healthcare Security Ordinance may be found atwww.sfgov.org/olse/hcso.