Unlocking Compliance: What Employers Need to Know About the San Francisco Health Care Security Ordinance (HCSO)

03/16/2026 Written by: BoonGroup-Admin

In the dynamic world of government contracting, understanding local regulations is essential for success. This month, we spotlight a pivotal law that impacts contractors operating in San Francisco: the Health Care Security Ordinance (HCSO).

What is the HCSO?

The Health Care Security Ordinance requires that employees working in San Francisco receive healthcare expenditures. Here’s why it matters:

  • Employer Coverage Requirements: Employers must spend a minimum amount on health care for employees who work 8 or more hours per week. This can be fulfilled through: Payments for health, dental, and/or vision insurance; Payments to the SF City Option; or Contributions to programs that reimburse employees for out-of-pocket health care costs
  • HCSO Applies to: Businesses with 20 or more employees (50 or more for non-profit organizations) working within San Francisco.
  • Timing of Spend Requirement: Employers must make the required health care expenditure on a quarterly basis
  • Employee Eligibility: Covered employees are those who have been employed for more than 90 days and who regularly work at least 8 hours per week in San Francisco
  • Annual Adjustments to Spend Obligation: The required per-hour expenditure amount is updated by the SF Office of Labor Standards Enforcement each year.

Implications for Government Contractors

For those in the government contracting space, the HCSO is a critical consideration. Here’s how it impacts you:

  1. Compliance: Ensure HCSO requirements are integrated into your bids
  2. Regular Reporting: Maintaining documentation for expenditures to show compliance
  3. Avoiding Penalties: Non-compliance can lead to financial penalties.

Conclusion

Navigating compliance with the San Francisco Health Care Security Ordinance can be complex, but partnering with Boon Group makes it manageable. Through comprehensive benefit administration and consulting solutions, Boon Group helps government contractors meet HCSO requirements, turn compliance into a competitive advantage, and support a healthier, more resilient workforce. For more insights or assistance with HCSO compliance, feel free to reach out!

Stay informed, stay compliant!

#GovernmentContracting #HCSO #HealthcareSecurity #Compliance #BoonGroup #EmployeeWellness #SanFrancisco



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