Health Care Expenditure Rules

New Health Care Expenditure Rates for San Francisco Employers

San Francisco updated its Health Care Expenditure rates for 2018. Under San Francisco’s Health Care Security Ordinance (HCSO), covered employers must make qualifying Health Care Expenditures on behalf of all covered employees every quarter. Covered employees are those who have been employed for more than 90 days and who regularly work at least 8 hours per week in San Francisco.

2018 Health Care Expenditure Rates for San Francisco Employees

The rates change depending on the size of the employer. A “Large” employer employs 100+ employees. “Medium” employers are non-profits with 50 to 99 employees and other companies with 20 to 99 employees. “Small” employers are non-profits with less than 50 employees and other companies with less than 19 employees.

Effective January 1, 2018, Large Business must spend $2.83/hour and medium-sized Businesses must spend $1.89/hour. Small businesses are still exempt from the Health Care Expenditure requirements.

Employers must also:

  1. Maintain compliance records.
  2. Post an HCSO Notice in all workplaces with covered employees.
  3. Submit an Annual Reporting Form to the OLSE by April 30th of each year.


You can download the HCSO Compliance Form here. You can review the updated “Rules” here.

Original article by Robert E. Nuddleman of Nuddleman Law Firm, P.C.

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