Healthy Airport Ordinance

CHANGES ARE COMING TO THE HEALTHY AIRPORT ORDINANCE

In November, the City enacted amendments to the Healthy Airport Ordinance (Ordinance 234-25) that provide a new method of compliance designed to provide employers with covered employees more flexibility.

Starting February 26, 2026, employers of employees covered by SFO’s QSP will have three options for compliance for the remainder of the 2026 calendar year:

1. Offer qualifying health benefits meeting the same requirements as before.
2. Pay $12.15 per hour worked (up to $486 per week) on behalf of the employee to the City Option Program. (As in prior years, the rate is subject to being updated on July 1, 2026)
3. New: Adopt the new tiered “Irrevocable Health Care Expenditure” approach, which sets minimum spending levels based on each employee’s household size:
   • $6.17/hour (max $246.80/week) for employees with no dependents
   • $12.33/hour (max $493.20/week) for employees with one dependent
   • $17.44/hour (max $697.60/week) for employees with two or more dependents

Under the new tiered approach, employers may count a wide range of health-related expenses toward the required Irrevocable Health Care Expenditure, as long as the funds are not recoverable by the employer. Covered expenses include payments to third-party administrators or insurers for health coverage, out-of-pocket claims paid by the employer for specific employees, and the actuarial value of self-funded or self-insured health plans. Employers may also reimburse employees directly for documented health care costs or contribute to Medical Reimbursement Accounts administered by the City.

From February 26, 2026, through December 31, 2026, employers can comply under any of the three methods listed above. Beginning January 1, 2027, the tiered irrevocable expenditure method will be the only option.

This gives covered employers all of 2026 to either maintain your current approach or transition early to the new system.