The San Francisco Health Care Security Ordinance (HCSO) requires covered employers to satisfy an employer spending requirement by making healthcare expenditures for their covered employees, among other reporting and notice requirements. The healthcare expenditure rate varies depending on the size of the employer and increases incrementally each year.
As of January 1, 2023, the healthcare expenditure rate for large employers with 100 or more employees increases to $3.40 per hour payable (up from $3.30 per hour in 2022). For medium-sized employers with 20 to 99 employees and for nonprofit employers with 50 to 99 employees, the expenditure rate will rise to $2.27 per hour payable (up from $2.20 per hour payable in 2022). 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 $114,141 per year ($54.88 per hour) or more, that employee is exempt from the HCSO. This represents an increase from last year’s threshold of $109,643 per year ($52.71 per hour).
All covered employers will be required to post the revised notice in all workplaces and job sites, when the poster becomes available.
2023 HCSO Announcement »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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