Emergency Stay Granted Regarding San Francisco's Health Care Ordinance
Posted by Nancy G. Berner
Yesterday the Ninth Circuit Court of Appeals issued an emergency stay permitting the City of San Francisco to implement the Employer Spending Requirement (“ESR”) provision of its Health Care Ordinance while it appeals the recent lower court ruling that found the ESR is preempted by federal law (click here to view the court's order). Although the City’s appeal is distinct from the stay, the court ruled that the City has a “strong likelihood of success” in prevailing on its appeal.
This emergency stay has an immediate impact on employers who employ 50 or more individuals total, with any of those persons working in San Francisco. Specifically, businesses with 50 to 99 employees that are not already spending a minimum of $1.17 per hour on employees who work 10 or more hours per week will now be required to do so; businesses with more than 99 employees that are not spending more than $1.76 per hour for employee healthcare must now spend that amount. Although the court did not articulate an effective date, its ruling in essence means that covered employers are required to immediately begin complying with the ESR.
We will continue to provide updates on this rapidly changing issue. In the interim, please contact us directly to discuss any questions you may have relating to this matter.