Section I: Employer Recordkeeping Requirements (HCSO Administrative Guidance)

Answers from the Employer Recordkeeping Requirements section of the HCSO Administrative Guidance.

1. What records do all employers need to retain to be in compliance with the HCSO?

Covered Employers must keep, for a period of four years from each Covered Employee’s dates of employment, the following records:

  1. itemized pay statements, as mandated by California Labor Code Section 226, which require the following: (a) gross wages earned, (b) total hours worked by the employee (unless salaried), (c) the number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis, (d) all deductions, aggregated, (e) net wages earned, (f) the inclusive dates of the period for which the employee is paid, (g) the name of the employee and his or her social security number/the last four digits of his or her social security number or an employee identification number other than a social security number may be shown on the itemized statement, (h) the name and address of the legal entity that is the employer, and (i) all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee;
  2. the employee’s address, telephone number, date of first day of work;
  3. records of Health Care Expenditures made, including calculations of Health Care Expenditures required under the law for each Covered Employee and proof documenting that such expenditures were made each quarter of each year;
  4. documentation supporting the exemption of an employee from coverage, such as a signed Employee Voluntary Waiver Form for each employee for whom the employer is claiming an exemption from the Employer Spending Requirement; and
  5. Covered Employers must also demonstrate that the Required Health Care Expenditures were made quarterly, unless they meet the requirements of the exception for self-funded plans.

2. What additional records are required if an employer makes Health Care Expenditures by contributing to the SF City Option?

The employer must retain copies of the Employee Health Care Payment Confirmations provided to employees.

Last updated March 3, 2024