San Francisco Health Care Ordinance: Mandatory Reporting Requirement

Spring 2009Newsletters California Update - Second Quarter 2009

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All employers covered by the San Francisco Health Care Ordinance must complete and return the Annual Reporting Form to the San Francisco Office of Labor Standards Enforcement (OLSE) by April 30, 2009. Forms are to be mailed to employers by the OLSE and are also available online. Covered employers include for-profit businesses employing 20 or more persons that are required to obtain a valid San Francisco business registration certificate from the San FranciscoTax Collector's office, and nonprofit businesses employing 50 or more persons.Covered employers need not be physically located within San Francisco, as long as they have employees doing business in San Francisco.

And for purposes of determining employer size, all persons performing work for the employer must be counted, regardless of whether they work in San Francisco. As a reminder, the Ordinance requires covered employers to spend a minimum amount of money on health care for employees covered by the ordinance. This year the health care expenditure rate increased to $1.23 per hour for employers with 20 to 99 employees, and $1.85 per hour for employers with 100 or more employees. The expenditure rate will increase again in 2010. It has been over two years since the Golden Gate Restaurant Association challenged this spending requirement of the Ordinance as being preempted by the Employee Retirement Income Security Act (ERISA). The Golden Gate Restaurant Association has until this June to file an appeal to the United States Supreme Court. The U.S. Supreme Court recently denied the Association’s emergency application to prevent San Francisco from continuing to implement the spending requirement while the case is on appeal.