Employer Spending Requirement (ESR)
The Employer Spending Requirement of the Health Care Security Ordinance requires that a Covered Employer make minimum health care expenditures for each Covered Employee. The minimum health care expenditure amount is determined quarterly by multiplying the total number of hours paid to the Employee by the applicable health care expenditure rate. “Hours paid” include both hours worked by the Employee plus any paid time off, including vacation and sick days, used by the Employee. Health care expenditures must be made at least quarterly, no later than 30 days, after the end of the preceding quarter.
|2016 Expenditure Rate||2017 Expenditure Rate|
|All Employers with 100+ Employees||$2.53 per hour paid||$2.64 per hour paid|
|For-profit Businesses with 20 - 99 employees|
Non-profit Businesses with 50 - 99 Employees
|$1.68 per hour paid||$1.76 per hour paid|
|For-profit Businesses with 0 - 19 employees|
Non-profit Businesses with 0 - 49 Employees
|Exempt from HCSO||Exempt from HCSO|
Employers can comply with the Employer Spending Requirement of the HCSO through various options, including:
- Payments for health, dental, and/or vision insurance;
- Payments into health savings/reimbursement accounts;
- Payments to the City Option Program.
San Francisco City Option is one option to comply with the HCSO. If you participate in the City Option Program, you may choose to satisfy the Employer Spending Requirement in whole or in part by payments to our program.