Section A: Overview (HCSO Administrative Guidance)

Answers from the Overview section of the HCSO Administrative Guidance.

1. What is the Health Care Security Ordinance?

The Health Care Security Ordinance (HCSO) is a San Francisco law that:

2. What does the HCSO require employers to do?

Under the HCSO, all Covered Employers must meet the following obligations:

  • Satisfy the Employer Spending Requirement (ESR) by calculating and making required health care expenditures on behalf of all Covered Employees.
  • Maintain records sufficient to establish compliance with the ESR.
  • Post an HCSO Notice in all workplaces with covered employees.
  • Submit an HCSO Annual Reporting Form to the OLSE by April 30th of each year.

3. What types of expenditures can employers make to comply with the HCSO Employer Spending Requirement?

Employers choose how to make the required Health Care Expenditures for their Covered Employees. Common Health Care Expenditures include:

  • Payments for health, dental, and/or vision insurance;
  • Payments to the SF City Option;
  • Contributions to programs that reimburse employees for out-of-pocket health care costs, subject to the limitations described in Administrative Guidance Section F.
Last updated October 19, 2023