UPDATE ON SAN FRANCISCO'S HEALTH CARE SECURITY ORDINANCE

In 2006, San Francisco enacted an ordinance requiring employers to make health care expenditures to or on behalf of all covered employees who work in the City of San Francisco. Some portions of the ordinance were to have originally taken effect in July 2007, but the ordinance was then amended to postpone all of its effective dates until 2008.

The ordinance was also challenged in federal court. In late December 2007, the district court entered an injunction that prevented the ordinance from taking effect. However, the City appealed that order to the Ninth Circuit, and, on January 9, 2008, the Ninth Circuit stayed the injunction pending the outcome of the appeal.

The Ninth Circuit is scheduled to hear oral argument on the merits of the City's appeal on April 17, 2008.

Meanwhile, in light of the Ninth Circuit's order staying the injunction, the ordinance took effect in January 2008 for some employers (those with 50 or more employees), and it took effect for another group of employers in April 2008 (those with 20 to 49 employees). Employers with 50 or more employees have until April 30, 2008 to make their required expenditures for the first quarter of 2008.

A summary of the requirements of the San Francisco Health Care Security Ordinance prepared by our firm can be found here.