State Updates

San Francisco Health Care Security Ordinance (HCSO) and Fair Change Ordinance (FCO): Employer Annual Reporting Due May 2, 2022

 

After a two-year break, San Francisco Health Care Security Ordinance employer reporting has resumed this year. Employers who are subject to the San Francisco Health Care Security Ordinance (HCSO) or the Fair Chance Ordinance (FCO) must submit the 2021 Employer Annual Reporting Form by May 2, 2022.

The HCSO applies to employers with 20 or more total employees worldwide and at least one employee who performs work within the city or county of San Francisco. The ordinance requires the employer to meet a certain spending threshold for each San Francisco employee related to health care. Employers must report the number of employees covered by the ordinance per quarter in 2021 and detail the health care expenditures made each quarter (payments for health insurance, contributions to the City Option or irrevocable expenditures to a reimbursement account).

The FCO applies to employers who have five or more total employees worldwide and at least one employee who performs work within the city or county of San Francisco. Additionally, employers who have a service contract with the City of San Francisco are also subject to the ordinance, regardless of the number of employees. The FCO ordinance prohibits employers from asking about arrest or conviction records on a job application. Employers must report whether their employment application in San Francisco asks about arrest or conviction information; and whether they conducted background checks on conviction or arrest records before a live interview (including telephonic).

Failure to comply with the annual reporting may result in a penalty of $500 per quarter assessed against the employer.

Covered employers should ensure that they retain supporting records to establish compliance with the spending requirements and FCO requirements. For 2022 compliance, covered employers should ensure that they displayed the posters for the 2022 HCSO Notice and FCO Poster in their workplaces or job site. Covered employers should also contribute the 2022 minimum healthcare expenditures for the San Francisco employees and satisfy all other requirements under those ordinances during 2022.

Reporting Form »
Reporting Instructions »
San Francisco HCSO Main Site »

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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