August 28, 2020
The San Francisco Office of Labor Standards Enforcement (OLSE) recently announced the 2021 expenditure rates to comply with the City's Health Care Security Ordinance (HCSO):
|Employer Size||Number of Workers||2020 Expenditure Rate||2021 Expenditure Rate|
|Large||All employers w/ 100+ workers||$3.08 per hour payable||$3.18 per hour payable|
|Medium||Businesses w/ 20-99 workers
Nonprofits w/ 50-99 workers
|$2.05 per hour payable||$2.12 per hour payable|
|Small||Businesses w/ 0-19 workers
Nonprofits w/ 0-49 workers
Depending on the number of hours worked by an employee not exempt from the HCSO (covered employee), a large employer subject to the HCSO (covered employer) could be required to spend up to $1,640.88 per quarter ($546.96 per month) on behalf of each covered employee to satisfy the HCSO requirements during 2021. In general, health care expenditures include employer contributions toward medical, dental and vision coverage.
The HCSO requires “covered employers” to make quarterly “health care expenditures” on behalf of its “covered employees” based on the number of hours worked during that quarter. These terms are briefly described below.
Employers are covered by the HCSO for any calendar quarter, and thus subject to the Ordinance’s requirements for that quarter if they satisfy all of the following three requirements:
The following employers are not covered by the HCSO:
A covered employer is required to make a minimum health care expenditure on or behalf its covered employees, which are those employees:
The following categories of employees are exempt from the HCSO:
A health care expenditure is an amount of money paid by a covered employer to provide a covered employee with access to health care services. Examples include making payments to enroll a covered employee in a health insurance program sponsored by the employer or making payments on an employee’s behalf to the City Option program (Medical Reimbursement Account or Healthy San Francisco).
Specific information regarding the HCSO, as well as other laws applicable to the City and County of San Francisco, can be found on the OLSE website at www.sfgov.org/olse.
For additional information, please contact your Burnham Benefits Consultant or Burnham Benefits at 949-833-2983 or email@example.com.
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