HR Alert

San Francisco Releases 2018 HCSO Rates and Final Rules

New Health Care Expenditure Rates Effective January 1, 2018

The San Francisco Office of Labor Standards Enforcement (OLSE) has released the 2018 health care expenditure rates and final rules for the Health Care Security Ordinance (HCSO).

New Rates
Beginning January 1, 2018, the health care expenditure rate will be $2.83 per hour for large businesses (100 or more employees total) and $1.89 per hour for medium-sized businesses (20-99 employees total).

Final Rules
The OLSE has also released a set of final rules, which aim to implement the HCSO's employer spending requirement. Among other things, the final rules address covered employees and employers; calculating and making health care expenditures; health care surcharges; additional employer responsibilities; and enforcement procedures. Affected employers are advised to read the final rules in their entirety. The rules take effect on October 29, 2017.

Under the HCSO, covered employers must meet certain obligations, including (among other things) satisfying the employer spending requirement by making required health care expenditures on behalf of covered employees.

Click here for the latest news on San Francisco's HCSO.

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