Increase in San Francisco Health Care Spending Law Requirement

07/08/2013

Employers with employees in San Francisco will have to pay more next year to comply with the city’s health care spending law. The spending requirement applies to employees who work at least eight hours per week and who have been employed for more than 90 days.

Though employers can satisfy this requirement by increasing medical benefits for their employees, it can also be satisfied by payment into the city fund known as “Healthy San Francisco,” a program established in 2007 to subsidize medical care for certain uninsured residents of San Francisco.

Beginning on Jan. 1, 2014:

  • Employers with 100 or more employees in San Francisco will be required to spend $2.44 per hour per covered employee on health care, up from $2.33 in 2013.
  • Employers with between 20 and 99 employees in San Francisco will have to spend at least $1.63 per hour, up from $1.55 in 2013.

Employers with fewer than 20 employees are exempt from the requirement.