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The following is not meant to be legal advice.

On August 7, 2006, San Francisco Mayor Gavin Newson signed an ordinance creating health care access to uninsured city residents. The ordinance becomes effective July 2007.  The ordinance applies to for-profit employers who engage in business within the City and County of San Francisco, have 20 or more “employees” and are required to obtain a valid San Francisco business registration certificate from the San Francisco Tax Collector’s Office (or nonprofits employing 50 or more employees).

Under the ordinance, employers that do not provide employees outside health coverage will be required to pay $1.06 per hour per employee if employing between 20 to 99 employees and $1.60 per hour per employee if employing more than 100 employees. The contribution amounts will increase each July 1 by 5% until July 1, 2010.

“Employee” does not include managerial or supervisory employees who earn more than $72,450 per year. Employers that already provide health coverage, but at a level that is less than the coverage amount set by the ordinance, will be required to contribute to the employee as a health expenditure or to San Francisco, the city, to fund the Health Access program.  The amount to contribute will be the difference between the cost of the employer’s coverage and the cost of the coverage required under the ordinance.