San Francisco issues 2018 employer health care spending rates

The City of San Francisco has announced the 2018 rates for its employer health care spending law, whereby employers must either contribute a specified amount toward their employees’ health care costs on a regular basis or pay into a city health care fund for San Francisco residents. Beginning January 1, 2018, the health care expenditure rate for employers with 100 or more employees will be $2.83 per hour, and the rate for medium-sized businesses with 20-99 employees will be $1.89 per hour.
The health care expenditures must be made on behalf of employees employed for more than 90 days and who regularly work at least eight hours per week in San Francisco. Businesses with 19 or fewer employees and nonprofits with 49 or fewer employees are exempt.
As of January 1, 2017, employers may no longer make revocable Health Care Expenditures to comply with the spending requirement of the HCSO. One way that employers may comply with the HCSO’s spending requirement is by making contributions to the City Option on behalf of their covered employees.
After considering public input on proposed HCSO Rules, the San Francisco Office of Labor Standards Enforcement published new Health Care Security Ordinance Rules on October 10, 2017. The October 10, 2017 version corrects an error in the version previously posted on September 29, 2017. The corrected version incorporates a longstanding rule that had been erroneously removed from the previous version. The effective date of October 29, 2017 remains the same.
The 2017 HCSO Notice, (which must be posted at workplaces as of January 1, 2017), along with the Employee HCSO Complaint Form and Employee Voluntary Waiver Form are available at.

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