What is the Health Care Security Ordinance (HCSO)?
OFFICIAL 2019 NOTICE Health Care Security Ordinance (HCSO) Businesses with a total of 20 or more workers worldwide (and nonprofit organizations with 50 or more workers worldwide) must spend a minimum amount on health care benefits for each of their “covered employees” – generally, those employees who work 8 or more hours per week in San Francisco and have been employed for more than 90 days. Employers with 20-99 workers must spend at least $1.95 for each hour payable for each covered employee. Employers with 100+ workers must spend at least $2.93 for each hour payable for each covered employee. These expenditures must be made for each employee within 30 days following the end of each calendar quarter. As long as they make the minimum required expenditures, employers may choose how they spend the money. For example, employers may pay for health insurance, make payments to the City’s health benefit program (called the City Option), etc. The City may investigate possible violations of the Ordinance and can order employers who violate the Ordinance to pay penalties and make payments for health care benefits. Employers may not punish employees who exercise their rights under the Ordinance or who cooperate with the City in enforcing the Ordinance.