HEALTH CARE ACCOUNTABILITY

SF-LABOR pt. DIVISION II: CITY CONTRACTOR EMPLOYEE PROVISIONS, art. 121

in effect

SF Labor and Employment Code § 121.1 TITLE.

SEC. 121.1. TITLE. This Article shall be known as the “San Francisco Health Care Accountability Ordinance.” (Added as Administrative Code Sec. 12Q.1 by Ord. 116-01, File No. 010848, App. 5/31/2001; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.2 DEFINITIONS.

SEC. 121.2. DEFINITIONS. As used in this Article 121, the following capitalized terms shall have the meanings set forth in this Section 121.2: “Agency” shall mean the Office of Labor Standards Enforcement. “Agency Director” shall mean the Director of the Office of Labor Standards Enforcement or his or her designee. “City” shall mean the City and County of San Francisco. “Contract” shall mean an agreement between a Contracting Department and any person or entity that provides for public works or public improvements to be purchased, or for services to be performed, at the expense of the City. The term “Contract” also means an agreement between a Tenant or Subtenant and any person or entity to perform services on property covered by a Lease. The term “Contract” includes “Contract Amendment.” Notwithstanding the foregoing, the term “Contract” does not include the following: (1) Agreements for a duration of less than one (1) year. Contracting Departments and Tenants and Subtenants are prohibited from entering into multiple contracts of short duration with the proposed Contractor in order to evade the requirements of this Article; (2) Agreements for the purchase or lease of goods, or for guarantees, warranties, shipping, delivery, installation or maintenance of such goods. Where an agreement is for the purchase or lease of both goods and other services, the agreement shall not be deemed a “Contract” if a preponderance of the contract amount is for goods; (3) Agreements entered into pursuant to settlement of legal proceedings; (4) Agreements for urgent or specialized advice, consultation or litigation services for the City Attorney’s Office where the City Attorney finds that it would be in the best interests of the City not to include the requirements of this Article; (5) Agreements with any person or entity if the amount of the agreement is less than $25,000 (in the case of a for-profit entity or person) or less than $50,000 (in the case of a Nonprofit Corporation). However, if the Contracting Party has multiple agreements with the City in a given fiscal year (which agreements would be considered “Contracts” under this Article except that the individual dollar amounts are below the thresholds set forth in the preceding sentence) and the cumulative amount of such agreements is $75,000 or more, the provisions of this Article shall apply to each such agreement from the date on which the triggering Contract is executed; (6) Agreements for the investment, management or use of trust assets where compliance would violate the fiduciary duties of the trustee; (7) Agreements executed prior to the Effective Date (unless and until a Contract Amendment is executed); (8) Agreements executed after the Effective Date (unless and until a Contract Amendment is entered into) pursuant to, and within the scope of, bid packages or requests for proposals advertised and made available to the public prior to the Effective Date, unless the bid packages or requests for proposals are materially amended on or after the Effective Date; (9) Agreements involving the expenditure by the City of special funds or other non-General Fund revenues to the extent that application of this Article would require the City to use General Fund monies to supplement the special funds or other non-General Fund revenues to maintain the current level of services; (10) Agreements that require the expenditure of grant funds awarded to the City by another entity. If a Contract is funded both by grant funds and non-grant funds, the entire Contract is exempt; provided that, if the use of the grant funds is severable from the non-grant funds, the Contract is exempt only with respect to the use of the grant funds; (11) Agreements pursuant to which the City awards a grant to a Nonprofit Corporation; (12) Agreements with a public entity, unless the public entity is the San Francisco Redevelopment Agency, the San Francisco LAFCO, the San Francisco Transportation Authority, the San Francisco Parking Authority or the San Francisco Health Authority; (13) Agreements for employee benefits to be provided to City employees, where the Director of Human Resources finds that no person or entity is willing to comply with this Article and is capable of providing the required employee benefits; (14) Agreements for the investment, management or use of City monies where the Treasurer finds that requiring compliance with this Article will violate the Treasurer’s fiduciary duties and for the investment of retirement, health or other funds held in trust pursuant to Charter, statute, ordinance or MOU where the official or officials responsible for investing or managing such funds find that requiring compliance with this Article will violate their fiduciary duties; (15) Loan agreements and agreements made in connection with loans or grants under which the City, as creditor or grantor, is providing funds to be used by the debtor or grantee to (A) Acquire an interest in real property on which residential improvements for low- or moderate-income households will be constructed; (B) Construct improvements owned or leased by the debtor or grantee, on condition that residents of the improvements qualify as low- or moderate-income households; or (C) Rehabilitate improvements owned or leased by the debtor or grantee; and (16) Agreements between a Tenant or Subtenant and a Contractor to perform services on property covered by a Lease if the Contractor does not provide such services on a regular and on-going basis. For purposes of this exemption, if employees of the Contractor I and any Subcontractors cumulatively work on the Lease property less than 130 days within a 12-month period, the agreement shall not be considered regular and on-going. “Contract Amendment” shall mean a modification to an agreement which extends the term, increases the total amount of payments due from the City (except where such increase is due solely to cost of living adjustments), or modifies the scope of services to be performed by the Contractor; provided that the resulting agreement falls within the definition of “Contract.” Notwithstanding the foregoing, “Contract Amendment” does not include a onetime extension of the term of a Contract for up to 6 months, or a construction change order, modification or amendment to a Contract executed by the City for its benefit (as determined by the Agency Director). “Contracting Department” shall mean the City department, office, board, commission or other City agency that enters into the applicable Contract or Lease on behalf of the City. “Contracting Parties” shall mean Contractors, Subcontractors, Tenants, Subtenants, and employers of San Francisco Airport Service Employees. “Contractor” shall mean the person or entity that enters into a Contract with the City. The term “Contractor” also means any person or entity that enters into a Contract with a Tenant or Subtenant to perform services on property covered by a Lease. “Covered Employee” shall mean: (1) An Employee of a Contractor or Subcontractor who works on a City Contract or Subcontract for 20 hours or more per Week in the United States; and (2) An Employee of a Tenant or Subtenant who works 20 hours or more per Week on property that is covered by a Lease or Sublease; and (3) An Employee of a Contractor or Subcontractor that has a Contract or Subcontract to perform services on property covered by a Lease or Sublease if the Employee works 20 hours or more per Week on the property; and (4) A San Francisco Airport Service Employee who works any number of hours during any Week in such capacity. A Contractor or Subcontractor may not divide an employee’s time between working on a City contract and working on other duties with the intent of reducing the number of Covered Employees working on the Contract to evade compliance with this Article 121. Such action shall constitute a violation of this Article. Notwithstanding the foregoing, the term “Covered Employee” does not include the following: (1) Any Employee (A) under the age of eighteen (18) who is a student, provided that the Employee does not replace, displace or lower the wage or benefits of any existing position or Employee, or (B) who is (i) a temporary Employee hired for a time-limited period, and (ii) for that period is receiving academic credit or completing mandatory hours for professional licensure or certification, and (iii) the Employee does not replace, displace or lower the wage or benefits of an existing position or Employee; or (2) Any Employee employed as a trainee in a bona fide training program consistent with Federal law, which training program enables the Employee to advance into a permanent position, provided that the Employee does not replace, displace or lower the wage or benefits of any existing position or Employee; or (3) Any Employee that the Contracting Party is required to pay no less than the “prevailing rate of wage” in accordance with Section A7.204 of Appendix A to the City’s Charter or any provision of the San Francisco Administrative Code and Labor and Employment Code; or (4) Any disabled Employee who: (A) Is covered by a current sub-minimum wage certificate issued to the employer by the U.S. Department of Labor; or (B) Would be covered by such a certificate but for the fact that the employer is paying a wage equal to or higher than the minimum wage. (5) Any Employee of a Nonprofit Corporation who is a temporary employee, hired on an hourly or per diem basis to replace a regular employee during a temporary absence from the workplace. “Effective Date” shall mean the applicable effective date specified in Section 121.9 1 of this Article. “Employee” shall mean any person who is employed by a Contracting Party, including part-time and temporary employees. “Health Care Dependent” shall mean: (1) a San Francisco Airport Service Employee’s spouse or registered domestic partner, (2) a San Francisco Airport Service Employee’s child, which shall include any legally adopted child, recognized natural child, stepchild, foster child, and minor legal ward who is eligible for coverage in accordance with 42 U.S.C. § 300gg-14(a), as may be amended from time to time; and (3) any other dependent entitled to be covered under employer-provided full-family health care plans under federal law or the laws of the State of California. “Health Care Expenditure” shall mean an amount paid by a Contracting Party to a trustee or third party on behalf of a San Francisco Airport Service Employee for the purpose of providing or reimbursing the cost of Health Care Services for San Francisco Airport Service Employees and their Health Care Dependents. “Health Care Expenditure” also shall mean an amount paid by a Contracting Party to a San Francisco Airport Service Employee for the purpose of reimbursing the cost of Health Care Services for San Francisco Airport Service Employees and their Health Care Dependents. “Health Care Expenditure” also shall mean an amount paid by a Contracting Party to the City on behalf of a San Francisco Airport Service Employee to establish or to contribute to a Medical Reimbursement Account administered in accordance with Section 21.2(g) of Article 21 of the Labor and Employment Code. Where a Contracting Party offers a self-funded or self-insured insurance health plan to San Francisco Airport Service Employee, “Health Care Expenditures” may include: premiums and/or fees paid by the Contracting Party to a third party to administer the self-funded/self-insured plan; claims paid out-of-pocket by the Contracting Party for the specific worker; and the actuarial value of the benefits offered by the Contracting Party as determined for setting rates for COBRA under federal law. “Health Care Expenditure” shall not include, for example: (1) any amount otherwise required to be paid by Federal, State, or local law, (2) any amount funded by deductions from a San Francisco Airport Service Employee’s pay, or (3) any amount paid directly by a Contracting Party to a San Francisco Airport Service Employee that is not related to a documented expenditure for Health Care Services. “Health Care Services” shall mean medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code as may be amended from time to time, or medical care, services, or goods having substantially the same purpose or effect as such deductible expenses. “Health Director” shall mean the Director of the Department of Public Health. “Irrevocable Health Care Expenditure” or “Irrevocable Expenditure” shall mean any amount of Health Care Expenditure that has not been retained by and cannot at any time be recovered by or returned to the Contracting Party. Where a Contracting Party offers a self-funded or self-insured insurance health plan to San Francisco Airport Service Employee, the actuarial value of the benefit offered may be treated as an Irrevocable Expenditure. “Lease” shall mean a written agreement (including, without limitation, any lease, concession or license) in which the City gives to another party the exclusive use of City Property for a term exceeding twenty-nine (29) consecutive days in any calendar year, whether by single or cumulative instruments. “City Property” means real property that is owned by the City or of which the City has exclusive use, if such property is located within the City or is under the jurisdiction of the San Francisco Airport Commission. If cumulative instruments cause the term of the agreement to exceed twenty-nine (29) consecutive days, the agreement in question shall be subject to this Article only on and after the effective date of the instrument which causes the term to exceed twenty-nine (29) consecutive days. For the purposes of this definition and the definition of Sublease, “exclusive use” means the right to use or occupy real property to the exclusion of others, subject to the rights reserved by the party granting such exclusive use. “Lease” includes “Lease Amendment.” Notwithstanding the foregoing, the term “Lease” does not include the following: (1) Agreements granting a franchise or easement; (2) Agreements with a public entity, unless the public entity is the San Francisco Redevelopment Agency, the San Francisco LAFCO, the San Francisco Transportation Authority, the San Francisco Parking Authority or the San Francisco Health Authority; (3) Agreements entered into pursuant to settlement of legal proceedings; (4) Revocable at-will use or encroachment permits for the use of or encroachment on City Property, regardless of the ultimate duration of such permits; (5) Street excavation, street construction or street use permits or other regulatory permits; (6) Agreements for the use of a City right-of-way, including circumstances where a contracting utility has the power of eminent domain; (7) Agreements governing the use of City Property under the jurisdiction of the Recreation and Park Department primarily for recreational activities. “Lease Amendment” shall mean a modification to a Lease that extends the term or materially changes any other provision of the Lease. Notwithstanding the foregoing, “Lease Amendment” does not include a one-time extension of the term of a Lease for up to 6 months, or relocation of the leased premises at the request of the City for its benefit or convenience (as determined by the Agency Director). “Nonprofit Corporation” shall mean a nonprofit corporation, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and (if a foreign corporation) in good standing under the laws of the State of California, which corporation has established and maintains valid nonprofit status under Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated under such Section. “San Francisco Airport Service Employees” shall mean Employees who are covered employees under the Quality Standards Program adopted by the San Francisco Airport Commission, as may be amended from time to time. “Subcontract” shall mean an agreement between a Contractor and a person or entity pursuant to which the person or entity agrees to perform all or a portion of the services covered by a Contract. Notwithstanding the foregoing, the term “Subcontract” does not include: (1) Agreements for the purchase or lease of goods, or for guarantees, warranties, shipping, delivery, installation or maintenance of such goods. When an agreement is for the purchase or lease of both goods and other services, the agreement shall not be deemed a “Subcontract” if a preponderance of the Contract amount is for goods; (2) Agreements with a public entity, unless the public entity is the San Francisco Redevelopment Agency, the San Francisco LAFCO, the San Francisco Transportation Authority, the San Francisco Parking Authority or the San Francisco Health Authority. “Subcontractor” shall mean a person or entity that enters into a Subcontract. “Sublease” shall mean any agreement with any person or entity for the exclusive right to occupy or use all or any portion of City Property covered by a Lease. Notwithstanding the foregoing, the term “Sublease” does not include each of the circumstances set forth in Section 121.2 that constitutes an exclusion from the definition of “Lease.” “Subtenant” shall mean a person or entity that enters into a Sublease. “Tenant” shall mean the person or entity that enters into a Lease with the City. “Week” shall mean a consecutive seven-day period. If the Contracting Party’s regular pay period is other than a seven-day period, the number of hours worked by an employee during a seven-day Week for purposes of this Article 121 shall be calculated by adjusting the number of hours actually worked during the Contracting Party’s regular pay period to determine the average over a seven-day Week. However, such period of averaging shall not exceed a duration of one month. (Added as Administrative Code Secs. 12Q.2 – 12Q.2.22 by Ord. 116-01, File No. 010848, App. 5/31/2001; amended by Ord. 49-06, File No. 051908, App. 3/24/2006; Ord. 69-09, File No. 090130, App. 5/1/2009; Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; amended by Ord. 234-25, File No. 250210, App. 11/28/2025, Eff. 12/29/2025, Oper. 2/27/2026) CODIFICATION NOTE 1. So in Ord. 49-06. Editor’s Notes: As part of its redesignation of Administrative Code Chapter 12Q to Labor and Employment Code Article 121, Ord. 221-23 consolidated former Administrative Code Sections 12Q.2 – 12Q.2.22 into a single section, Section 121.2 above. Previously, the chapter (now article) definitions had been codified under separate section numbers. For the purpose of retaining the legislative histories of the now superseded Chapter 12Q definition provisions, the terms formerly defined in Administrative Code Sections 12Q.2 – 12Q.2.22 are set out below, along with their history notes as they existed immediately prior to the effectiveness of Ord. 221-23. SEC. 12Q.2. DEFINITIONS. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021) SEC. 12Q.2.1. AGENCY. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006) SEC. 12Q.2.2. AGENCY DIRECTOR. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006) SEC. 12Q.2.3. CITY. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.4. CONTRACT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.5. CONTRACT AMENDMENT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.6. CONTRACTING DEPARTMENT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.7. CONTRACTING PARTIES. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021) SEC. 12Q.2.8. CONTRACTOR. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.9. COVERED EMPLOYEE. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006; Ord. 69-09, File No. 090130, App. 5/1/2009; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021) SEC. 12Q.2.10. EFFECTIVE DATE. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.11. EMPLOYEE. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.12. HEALTH DIRECTOR. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.13. LEASE. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.14. LEASE AMENDMENT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.15. NONPROFIT CORPORATION. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.16. SAN FRANCISCO AIRPORT SERVICE EMPLOYEES. (Added by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021) (Former Administrative Code Sec. 12Q.2.16 added by Ord. 116-01, File No. 010848, App. 5/31/2001; redesignated as Sec. 12Q.2.22 and amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021) SEC. 12Q.2.17. SUBCONTRACT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.18. SUBCONTRACTOR. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.19. SUBLEASE. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.20. SUBTENANT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.21. TENANT. (Added by Ord. 116-01, File No. 010848, App. 5/31/2001) SEC. 12Q.2.22. WEEK. (Added as Administrative Code Sec. 12Q.2.16 by Ord. 116-01, File No. 010848, App. 5/31/2001; redesignated as Sec. 12Q.2.22 and amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021)

SF Labor and Employment Code § 121.3 HEALTH CARE ACCOUNTABILITY COMPONENTS.

SEC. 121.3. HEALTH CARE ACCOUNTABILITY COMPONENTS. (a) Except as provided in subsections (d) and (e), with respect to each Covered Employee who either resides in San Francisco (regardless of where the Covered Employee provides services) or provides services covered by this Article 121 in San Francisco, each Contracting Party shall do one of the following, at the Contracting Party’s option: (1) Offer to the Covered Employee health plan benefits that meet minimum standards prepared by the Health Director and approved by the Health Commission. The minimum standards shall provide for a maximum period for each Covered Employee’s health benefits to become effective, no later than the first of the month that begins after 30 days from the start of employment on a covered Contract, Subcontract, Lease, or Sublease. The Health Commission shall review such standards at least once every two years to ensure that the standards stay current with State and Federal regulations and existing health benefits practices; or (2) For each Week in which the Covered Employee works the applicable minimum number of hours set forth in Section 121.2 (definition of “Covered Employee”), pay to the City $2.80 per hour for each hour the Covered Employee is employed by the Contracting Party on the Contract or Subcontract or on property covered by a Lease, but not to exceed $112 in any Week. The City shall appropriate money received pursuant to this subsection (a)(2) for the use of the Department of Public Health. The Department of Public Health shall use the monies appropriated for staffing and other resources to provide medical care for the uninsured. Beginning with Fiscal Year 2009-2010, and each following year, the Health Director shall propose adjustments to the hourly rate and weekly maximum fee provided in this subsection, based on changes since the prior year in the Bureau of Labor Statistics Consumer Price Index for Medical Care in the San Francisco Bay Area or average Health Maintenance Organization (HMO) premiums in California. The Health Director shall submit the proposed adjustments to the Controller by March 1. The Controller shall make appropriate adjustments to the hourly rate and weekly maximum fee without further action by the Board of Supervisors. The adjusted hourly rate and weekly maximum fee shall take effect on July 1. (3) Participate in a health benefits program developed by the Health Director in consultation with the Agency. The Health Director shall obtain Health Commission approval of the program before implementing it. The Health Director shall seek such approval within 12 months after this Article 121 is finally approved. Prior to implementation of the health benefits program provided in this subsection (a)(3), each Contracting Party shall comply with subsection (a)(1) or (a)(2). After the Health Director implements the program, in addition to the options provided in subsections (a)(1) and (a)(2), Contracting Parties may satisfy their obligations under this Article by complying with the requirements of the health benefits program. In developing the program, the Health Director shall: (i) attempt to make health coverage available for uninsured Covered Employees and, if feasible, any other person employed by a Contracting Party who works less than 20 hours per week on a City contract, or other uninsured City residents; (ii) use public health facilities to the maximum extent practicable; (iii) make the program economically viable; and (iv) provide a mechanism for funding which relies, as much as possible, on contributions by participating employers and employees. (b) Except as provided in subsections (d) and (e), with respect to each Covered Employee who does not reside in San Francisco, but who provides services covered by this Article 121 at the San Francisco Airport or at the San Bruno Jail, each Contracting Party shall do one of the options set forth in subsection (a), at the Contracting Party’s option. (c) With respect to each Covered Employee who does not reside in San Francisco, and does not provide services covered by this Article 121 in San Francisco, at the San Francisco Airport, or at the San Bruno Jail, each Contracting Party shall do one of the following, at the Contracting Party’s option: (1) Offer to the Covered Employee health plan benefits that meet minimum standards prepared by the Health Director and approved by the Health Commission pursuant to subsection (a)(1) above; or (2) For each Week in which the Covered Employee works the applicable minimum number of hours set forth in Section 121.2 (definition of “Covered Employee”), pay to the Covered Employee an additional $2.80 per hour for each hour the Covered Employee is employed by the Contracting Party on the Contract or Subcontract or on property covered by a Lease, but not to exceed $112 in any Week, to enable the employee to obtain health insurance coverage. This represents the City’s original estimate of the average cost of obtaining individual health insurance benefits. Beginning with Fiscal Year 2009-2010, and each following year, the Health Director shall propose adjustments to the hourly rate and weekly maximum fee provided in this ection1 (c)(2), based on changes since the prior year in the Bureau of Labor Statistics Consumer Price Index for Medical Care in the San Francisco Bay Area or average Health Maintenance Organization (HMO) premiums in California. The Health Director shall submit the proposed adjustments to the Controller by March 1. The Controller shall make appropriate adjustments to the hourly rate and weekly maximum fee without further action by the Board of Supervisors. The adjusted hourly rate and weekly maximum fee shall take effect on July 1. (d) Until January 1, 2027, with respect to each Covered Employee who is a San Francisco Airport Service Employee, each Contracting Party shall comply with this Article 121 by providing health care benefits, making contributions to medical reimbursement accounts, or making Irrevocable Health Care Expenditures, as set forth in subsections (d)(1)-(d)(3), at the Contracting Party’s option. As stated in subsection (e), starting on January 1, 2027, only the option of making Irrevocable Health Care Expenditures, as set forth in subsection (d)(3), will constitute compliance with this Article 121 by a Contracting Party with respect to each Covered Employee who is a San Francisco Airport Service Employee. (1) Health Care Benefits. Offer health plan benefits to the Covered Employee and the Covered Employee’s dependents, with the following features: (A) The health benefits shall include at least one plan that: (i) is offered at no cost to the Covered Employee, (ii) provides a level of coverage that is designed to provide benefits that are actuarially equivalent to at least 90% of the full actuarial value of the benefits provided under the plan, and (iii) provides coverage for all services described in the California Essential Health Benefit Benchmark Plan. (B) A Contracting Party may offer additional health benefit plans, provided that each such health benefit plan offered shall provide a level of coverage that is designed to provide benefits that are actuarially equivalent to at least 80% of the full actuarial value of the benefits provided under the plan and to provide coverage for all services as described in the California Essential Health Benefit Benchmark Plan. If the premium costs of such additional health benefit plan are greater than the premium costs of a plan offered under subsection (d)(1)(A), a Covered Employee electing such a health benefit plan may be required to pay a portion of the premium costs. The Covered Employee’s premium cost share shall be limited to not more than the difference between the premium costs of the most expensive plan offered under subsection (d)(1)(A) and the premium costs of the health benefit plan that the Covered Employee elects under this subsection (d)(1)(B). (C) The maximum period for each Covered Employee’s health benefits to become effective shall be no later than the first day of the first month after 30 days from the start of employment as a San Francisco Airport Service Employee; provided, however, that if a Contracting Party elects to make monthly contributions for a Covered Employee pursuant to subsection (d)(2), health benefits shall become effective no later than the first day after the Contracting Party ceases making such contributions. (D) The Covered Employee’s health benefits shall, at a minimum, cover the Covered Employee, the Covered Employee’s spouse or registered domestic partner, and the Covered Employee’s child, which shall include any legally adopted child, recognized natural child, stepchild, foster child, and minor legal ward. Coverage for a child must be made available until the child reaches the age of 26, in accordance with 42 U.S.C. § 300gg-14(a), as may be amended from time to time. (E) Notwithstanding the Operative Date of Ordinance No. 235-20, if a Contracting Party elects to comply with this subsection (d) by providing health benefits under subsection (d)(1), such health benefits shall not be required to be in effect prior to April 1, 2021. (2) Contributions to a Medical Reimbursement Account. For each Week in which the Covered Employee works any hours as a San Francisco Airport Service Employee, make contributions for that Employee as specified below into an account established under Section 21.2 of the Labor and Employment Code, as may be amended from time to time. (A) Contributions made pursuant to this subsection (d)(2) shall be $9.50 per hour, but not to exceed $380 in any Week, as of the operative date of Ordinance No. 235-20. (B) Beginning with Fiscal Year 2022-2023, and for each following fiscal year, the Health Director shall propose adjustments to the hourly rate and weekly maximum fee provided in this subsection (d)(2), based on changes since the prior year in the Bureau of Labor Statistics Consumer Price Index for Medical Care in the San Francisco Bay Area or in average Health Maintenance Organization premiums in California. The Health Director shall submit the proposed adjustments, together with proposed adjustments under subsection (a)(2), to the Controller by March 1. The Controller shall make appropriate adjustments to the hourly rate and weekly maximum fee without further action by the Board of Supervisors. The adjusted hourly rate and weekly maximum fee shall take effect on July 1. (3) Irrevocable Health Care Expenditures. Make Irrevocable Health Care Expenditures to or on behalf of each San Francisco Airport Service Employee. (A) For purposes of this subsection (d)(3), the minimum Irrevocable Health Care Expenditure rate is as follows: (i) Before January 1, 2027: a. For a San Francisco Airport Service Employee with no Health Care Dependents, $6.17 per hour worked, but not to exceed $246.80 in any Week; b. For a San Francisco Airport Service Employee with one Health Care Dependent, $12.33 per hour worked, but not to exceed $493.20 in any Week; c. For a San Francisco Airport Service Employee with two or more Health Care Dependents, $17.44 per hour worked, but not to exceed $697.60 in any Week. (ii) Each calendar year, the Health Director shall propose adjustments to the hourly rate and weekly maximum Irrevocable Health Care Expenditure rate provided in this subsection (d)(3)(A) for the next calendar year based on changes since the prior year in the Bureau of Labor Statistics Consumer Price Index for Medical Care in the San Francisco Bay Area or in average Health Maintenance Organization premiums in California. The Health Director shall submit the proposed adjustments for the next calendar year, together with proposed adjustments under Section 121.3(a)(2), to the Controller by June 1 of the year before the proposed change is to go into effect. The Controller shall make appropriate adjustments to the hourly rate and weekly maximum fee without further action by the Board of Supervisors. The adjusted hourly rate and weekly maximum Irrevocable Health Care Expenditure rate shall take effect on the following January 1 each year. (B) Where a Contracting Party complies with this subsection (d)(3) in full or in part by making payments to the City to provide for a Medical Reimbursement Account, the payment to the City shall be due no later than 30 days after the end of the quarter of the year in which the hours were worked by the San Francisco Airport Service Employee. (e) Beginning on January 1, 2027, Contracting Parties employing San Francisco Airport Service Employees shall no longer have the option of complying with this Article 121 by providing benefits or making contributions, as set forth in subsections (d)(1)-(d)(2), and shall comply with this Article 121 only by making Irrevocable Health Care Expenditures, as set forth in subsection (d)(3). (f) A Covered Employee may voluntarily waive an offer of health plan benefits under this Section 121.3 using a waiver form approved by the Agency upon providing the Contracting Party proof of current health plan coverage. With respect to subsection (d), such proof of current health plan coverage must include the Covered Employee’s Health Care Dependents. The Contracting Party must retain voluntary waiver forms and proof of health plan coverage for three years and must provide the Agency access to them upon request. Where a Contracting Party is subject to the requirements in subsection (d)(3) of this Section 121.3 and secures a voluntary waiver from a San Francisco Airport Service Employee with respect to health plan coverage offered to the Contracting Party’s similarly-situated San Francisco Airport Service Employees, it may deduct the amount of the premiums that the employer would have paid if the San Francisco Airport Service Employee accepted the coverage offered from the applicable minimum Irrevocable Health Care Expenditure rate. The Contracting Party remains responsible to make Irrevocable Health Care Expenditures for the remaining amounts that are not covered by the waiver. (g) When preparing proposed budgets and requests for supplemental appropriations for contract services, City departments that regularly enter into agreements for the provision of services by nonprofit corporations shall transmit with their proposal a written confirmation that the department has considered in its calculation the costs that the nonprofit corporations calculate that they will incur in complying with the Health Care Accountability Ordinance. (h) Notwithstanding the above subsections in this section 121.3, if, at the time a Contract, Subcontract, Lease, or Sublease is executed, the Contracting Party has 20 or fewer employees (or, in the case of a Nonprofit Corporation, 50 or fewer employees), including any employees the Contracting Party plans to hire to implement the Contract, Subcontract, Lease, or Sublease, the Contracting Party shall not be obligated to provide the Health Care Accountability Components set forth in subsections (a), (b), or (c) to its Covered Employees. In determining the number of employees had by a Contracting Party, all employees of all entities that own or control the Contracting Party and that the Contracting Party owns or controls, shall be included. (Added as Administrative Code Sec. 12Q.3 by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006; Ord. 69-09, File No. 090130, App. 5/1/2009; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021; Ord. 51-21, File No. 210216, App. 4/16/2021, Eff. 5/17/2021, Retro. 3/21/2021 (in part)*; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; amended by Ord. 234-25, File No. 250210, App. 11/28/2025, Eff. 12/29/2025, Oper. 2/27/2026) CODIFICATION NOTE 1. So in Ord. 234-25. *Editor’s Note: Section 3(b) of Ord. 51-21 provides: “This ordinance shall become operative on its effective date, except that the amendment adding Section 12Q.3(d)(1)(E) (now at Labor and Employment Code Section 121.3(d)(1)(E)) shall be retroactive to the Operative Date of Ordinance No. 235-20.”

SF Labor and Employment Code § 121.4 CONTRACTUAL OBLIGATIONS.

SEC. 121.4. CONTRACTUAL OBLIGATIONS. (a) Each Contracting Party that enters into a Contract, Subcontract, Lease, or Sublease shall agree: (1) To comply with the requirements of this Article, including the requirement to choose and perform one of the Health Care Accountability Components set forth in Section 120.3; (2) To comply with regulations adopted by the Agency pursuant to this Article; (3) To maintain employee and payroll records in compliance with the California Labor Code and Industrial Welfare Commission orders, including the number of hours each employee has worked on the City Contract or Subcontract. If the Contracting Party fails to maintain records that accurately reflect the number of hours each employee has worked on the City Contract or Subcontract, it shall be presumed that any employee who has worked on a City Contract or Subcontract is a Covered Employee as defined in Section 121.2. (4) To provide information and reports to the City in accordance with any reporting standards promulgated by the Agency in consultation with the Director of Health; (5) To provide the City with access to pertinent payroll records relating to the number of employees employed and terms of medical coverage after receiving a written request to do so and being provided at least ten (10) business days to respond; (6) To allow the City to inspect Contracting Parties’ job sites and have access to Contracting Parties’ employees in order to monitor and determine compliance with this Article; (7) To cooperate with the Agency when it conducts audits; (8) To include in every Contract, Subcontract, Lease, or Sublease subject to this Article provisions requiring compliance with this Article, consistent with any directives or standards adopted by the Agency; (9) To notify the Contracting Department promptly of any Subcontractors performing services covered by this Article and certify to the Contracting Department that it has notified the Subcontractors of their obligations under this Article; and (10) To represent and warrant that it is not an entity that was set up, or is being used, for the purpose of evading the intent of this Article. (b) A Contracting Party shall not discharge, reduce in compensation, or otherwise discriminate against any Employee for notifying the City regarding the Contracting Party’s noncompliance or anticipated noncompliance with this Article, for opposing any practice proscribed by this Article, for participating in proceedings related to this Article, or for seeking to assert or enforce any rights under this Article by any lawful means. (Added as Administrative Code Sec. 12Q.4 by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.5 ADMINISTRATION AND ENFORCEMENT.

SEC. 121.5. ADMINISTRATION AND ENFORCEMENT. (a) The Agency, in consultation with the Department of Public Health, shall promulgate regulations for the interpretation and administration of this Article, which regulations shall be adopted only after public hearing. The regulations shall establish procedures for monitoring Contractors, receiving and investigating complaints, and providing administrative hearings to determine whether a Contractor has breached a Contract, Subcontract, Lease or Sublease based on the requirements of this Article. (b) The Agency shall monitor Contracting Parties for compliance and investigate complaints of violations. The Agency, in consultation with the City Attorney, shall develop contractual provisions for use by Contracting Departments designed to enable the City to pursue the remedies set forth in this Section against every person or entity required to comply with this Article. (c) The Agency, in consultation with the Department of Public Health, may conduct audits of Contracting Parties, although such audits shall be conducted through an examination of records at a mutually agreed upon time and location within ten (10) days of written notice. (d) The Agency and the Department of Public Health shall provide an annual joint report to the Board of Supervisors on compliance with this Article. Such report shall include cumulative information regarding the number of waivers granted pursuant to this Article. (e) A Covered Employee may report to the Agency in writing any alleged violation of this Article by a Contracting Party or other person or entity subject to this Article. The Agency shall investigate any such report. If the Agency determines that any person or entity has violated this Article, the Agency shall notify the Contracting Department of its, findings. In order to ensure compliance with this Article and to enhance the monitoring activities of the Agency, the City encourages reporting by Covered Employees pursuant to this Subsection. The Agency shall keep confidential the Covered Employee’s name and other identifying information, to the maximum extent permitted by applicable law. (f) In addition to any other rights or remedies available to the City under the terms of any agreement of a Contracting Party or under applicable law, the City shall have the following rights: (1) The right, at the discretion of the Agency, to charge the Contracting Party for any amounts that the Contracting Party should have paid to the City for hours worked by Covered Employees pursuant to Section 121.3(a)(2), (b), or (d), or to Covered Employees pursuant to Section 121.3(c)(2), together with simple annual interest of 10% on such amount from the date payment was due; (2) The right, at the discretion of the Agency, to assess liquidated damages as provided in Section 121.6 and 121.7; (3) The right, at the discretion of the Agency, to set off all or any portion of the amount that a Contracting Party is required to pay to the City pursuant to preceding Subsections (g)(1) and (2) against amounts due to a Contracting Party; (4) The right, at the discretion of the Contracting Department, to terminate the Contract or Lease in whole or in part; (5) The right, at the discretion of either the Contracting Department or the Agency, to bar a Contracting Party from entering into future Contracts or Leases with the City for three (3) years. (6) The right to bring a civil action against the Contractor to pursue the remedies provided by this Article and other applicable law. The prevailing party shall be entitled to all costs and expenses, including reasonable attorney’s fees. (g) Each Contractor shall be responsible for its Subcontractors with respect to compliance with this Article. If a Subcontractor fails to comply, the City may pursue the remedies set forth in this Section against the Contractor based on the Subcontractor’s failure to comply, provided that the Contracting Department has first provided the Contractor with notice and an opportunity to obtain a cure of the violation. (h) Each Tenant shall be responsible for each Subtenant, Contractor and Subcontractor performing services on property covered by the Tenant’s Lease, with respect to compliance with this Article. If any Subtenant, Contractor or Subcontractor fails to comply, the City may pursue the remedies set forth in this Section against the Tenant based on the Subtenant’s, Contractor’s or Subcontractor’s failure to comply, provided that the Contracting Department has first provided the Tenant with notice and an opportunity to obtain a cure of the violation. (i) Each of the rights set forth in this Section 121.5 shall be exercisable individually or in combination with any other rights or remedies available to the City. Any amounts realized by the City pursuant to this Section shall be used first to cover the costs of enforcing this Article and thereafter appropriated for the use of the Department of Public Health. (j) The Agency may compromise and settle unlitigated claims against Contracting Parties for violations of contractual provisions required by this Article. (k) All Contracting Parties and Contracting Departments shall cooperate fully with the Agency in connection with any investigation of an alleged violation of this Article or with any inspection conducted by the Agency. (l) When this Article authorizes the Agency to charge interest (not to exceed 10%), in determining whether to charge the interest, the Agency shall give due consideration to the size of the Contractor’s business, the Contractor’s good faith, the gravity of the violation, and the history of previous violations. (Added as Administrative Code Sec. 12Q.5 by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.6 ADDITIONAL CONTRACT REQUIREMENTS; LIQUIDATED DAMAGES.

SEC. 121.6. ADDITIONAL CONTRACT REQUIREMENTS; LIQUIDATED DAMAGES. Every Contract, Contract Amendment, Lease and Lease Amendment entered after January 1, 2006 shall contain provisions in which the Contracting Party agrees: (1) To be liable to the City for liquidated damages as provided in this Section; (2) To be subject to the procedures governing enforcement of a breach of the terms of a Contract, Contract Amendment, Lease or Lease Amendment which terms are required by this Article, as set forth in Section 121.7; (3) That the commitment of Contracting Parties to comply with the requirements of this Article is a material element of the City’s consideration for the agreement and that the failure of a Contracting Party to comply will cause significant and substantial harm to the City and the public, which is extremely difficult to determine or quantify, and that the liquidated damages set forth in this Section are reasonable amounts to pay for the harm caused by the Contracting Party’s non-compliance; (4) That for failure to comply with the requirements of this Article, the Agency may require the Contracting Party to pay the City liquidated damages of up to one hundred dollars ($100) for each one-week pay period for each employee for whom the Contracting Party has either not offered health plan benefits or made payments as required by Section 121.3. The Agency shall adjust this amount proportionately for Contracting Parties that use a pay period other than one week; (5) That for any failure to provide reports to the City or access to pertinent records, or any failure to cooperate with any audit, inspection or investigation conducted by the Agency, the Agency may require the Contracting Party to pay the City liquidated damages of up to one thousand dollars ($1000); and (6) That while liquidated damages in the maximum amounts set forth in this Section are a reasonable estimate of the harm caused by the Contracting Party’s non-compliance with contractual provisions required by this Article, the Agency may determine that less than the full amount is warranted depending on the circumstances of each case. The Agency shall give due consideration to the following factors in determining the amount of liquidated damages: the size of the Contracting Party’s business, the Contracting Party’s good faith, the gravity of the violation, the history of previous violations, the failure to comply with record-keeping, reporting and anti-retaliation requirements, and the extent to which the imposition of liquidated damages would undermine the purpose of this Article by imposing unreasonable financial burdens on the Contracting Party, thereby restricting its ability to fulfill its obligations under this Article. (Added as Administrative Code Sec. 12Q.5.1 by Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.7 INVESTIGATION AND DETERMINATION OF VIOLATIONS.

SEC. 121.7. INVESTIGATION AND DETERMINATION OF VIOLATIONS. (a) Determination of Violation. Upon determining that a Contracting Party may have violated the terms of a Contract, Contract Amendment, Lease or Lease Amendment required under this Article, the Agency shall send written notice to the Contracting Party of the possible violation and of the Contracting Party’s right to respond to the Agency’s initial determination by submitting pertinent documents and other information. The written notice shall also notify the Contracting Party that the Agency is authorized to direct the Controller to withhold payment otherwise due to the Contracting Party pursuant to the provisions of Subsection (d). If after providing the Contracting Party with a reasonable opportunity to respond to the allegations the Agency makes a final determination that a violation has occurred, the Agency shall provide a written notice of violation to the Contracting Party. (b) Right to Appeal. The Contracting Party may appeal the Agency’s final determination. The Contracting Party must file an appeal with the Agency in writing, specifying the basis for contesting the determination, no later than 15 days after the date of the notice of determination. Failure to file an appeal in writing with the Controller within 15 days shall cause the Agency’s determination to be deemed a final administrative decision by the City. (c) Administrative Hearing. (1) Within 15 days after the Agency receives an appeal, the Controller shall appoint a hearing officer and shall notify the Agency and the Contracting Party. (2) The hearing officer shall promptly set a date for a hearing. The hearing shall commence within 45 days of the notification of the appointment of the hearing officer and conclude within 75 days of such notification unless all parties agree to an extended period. (3) The Agency shall have the burden of producing evidence that the Contracting Party has violated the requirements of this Article and the burden of proving the violation. (d) Hearing Officer’s Decision. (1) Within 30 days of the conclusion of the hearing, the hearing officer shall issue a written decision affirming, modifying, or vacating the Agency’s determination. If the hearing officer vacates the Agency’s determination in its entirety, that decision shall also vacate any assessment of liquidated damages. If the hearing officer affirms the Agency’s determination, the hearing officer shall issue a decision upholding the Agency’s determination, including the amount of the liquidated damages assessed by the Agency. With respect to liquidated damages, the hearing officer’s jurisdiction to modify the Agency’s assessment is limited and the following procedures apply. If the hearing officer modifies the Agency’s determination, the hearing officer shall transmit the decision to the Agency, which shall within five business days modify the assessment of liquidated damages consistent with the hearing officer’s decision based on the criteria set forth in Section 121.6(6) and transmit the modified assessment to the hearing officer. Upon receiving the modified assessment from the Agency, the hearing officer shall within three business days issue a final decision, which shall include the amount of the liquidated damages assessment as modified by the Agency. (2) The hearing officer’s decision shall consist of findings and a determination, which shall be final. The Contracting Party may seek review of the hearing officer’s decision only by filing in the San Francisco Superior Court a petition for a writ of mandate under California Code of Civil Procedure, section 1094.5, as may be amended from time to time. (3) The failure of the Controller or hearing officer to comply with the time requirements of this Section shall not cause the Controller or the hearing officer to lose jurisdiction over an appeal from the Agency’s determination filed under this Section. (4) Upon the hearing officer’s decision affirming or modifying the Agency’s determination, the Contracting Party shall take the corrective action, including the payment of liquidated damages, if any, within 14 days of receiving the hearing officer’s decision. When a Contracting Party fails to take corrective action within the time required by the provisions of this Section, the City may immediately pursue all available remedies against the Contracting Party. (e) Withholding of Payments by Controller. (1) When the Agency sends notice to a Contracting Party of its final determination that the Contracting Party has violated the requirements of this Article 121 and of the Contracting Party’s right of appeal to the Controller, the Agency may direct the Contracting Department and the Controller to deduct from the payments otherwise due to the Contracting Party the amounts that the Agency has determined the Contracting Party must pay to the City under Sections 121.3(a)(2), (b), or (d) and as liquidated damages. The Controller, in issuing any warrant for any such payment, shall deduct the amounts specified by the Agency. (2) The Controller shall withhold these funds until (A) the hearing officer issues a decision finding that the Contracting Party does not owe all or a portion of the amount withheld, in which case the Controller shall release funds to the Contracting Party consistent with the hearing officer’s decision or (B) the Contracting Party consents to the use of the funds to pay the City the amounts that the Agency or hearing officer found due. As to any funds being withheld for which neither (A) nor (B) applies, the Controller shall retain the funds until the hearing officer’s decision is no longer subject to judicial review, at which time the Controller shall distribute amounts owed under Sections 121.3(a)(2), (b), or (d) in the appropriate account for the use of the Department of Public Health and amounts due as liquidated damages in the General Fund, provided that this action is consistent with any final determination of a court of competent jurisdiction. Notwithstanding the provisions of this subsection, the Agency may authorize the release of payments withheld from the Contracting Party under this Section if the Agency determines that the continued withholding of funds imposes a substantial risk of endangering public health or safety, interfering with a service or project that is essential to the City, or having an unreasonable adverse financial impact on the City. (Added as Administrative Code Sec. 12Q.5.2 by Ord. 49-06, File No. 051908, App. 3/24/2006; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.8 WAIVERS BY THE AGENCY DIRECTOR.

SEC. 121.8. WAIVERS BY THE AGENCY DIRECTOR. (a) The Agency Director or designee, in consultation with the Department of Public Health, shall waive the requirements of this Article when the Contracting Department has provided justification to the Agency Director, and the Agency Director has found that one of the following circumstances exists: (1) The needed service, project or property arrangement under the Contract or Lease is available only from a sole source; (2) Pursuant to Chapter 6 or 21 of the Administrative Code, the Contract or Lease is necessary to respond to an emergency that endangers the public health or safety; (3) There are no qualified responsive bidders or prospective vendors or tenants that comply with the requirements of this Article and the agreement is for a service, lease or project that is essential to the City or the public; (4) The public interest warrants the granting of a waiver because application of this Article would constitute an adverse impact on services or an unreasonable adverse financial impact on the City; or (5) (A) services to be purchased are available under a bulk purchasing arrangement with a federal, state or local governmental entity; (B) Purchase under such arrangement will substantially reduce the City’s cost of purchasing such services; and (C) Purchase under such an arrangement is in the best interest of the City or the public. (b) Each waiver shall be effective for the duration of the Contract or Lease. Subsequent waivers may be requested and either granted or denied. (Added as Administrative Code Sec. 12Q.6 by Ord. 116-01, File No. 010848, App. 5/31/2001; Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.9 SPECIAL WAIVER BY THE PUBLIC UTILITIES COMMISSION.

SEC. 121.9. SPECIAL WAIVER BY THE PUBLIC UTILITIES COMMISSION. The General Manager of the Public Utilities Commission may waive the requirements of this Article where the Contractor or Subcontractor is providing to or on behalf of the San Francisco Public Utilities Commission services relating to: (a) The provision, conveyance or transmission of wholesale or bulk water, electricity or natural gas; or (b) Ancillary requirements such as spinning reserve, voltage control, or loading scheduling, as required for ensuring reliable services in accordance with good utility practice; provided, however: (1) The purchase of such services may not practically be accomplished through the City’s standard competitive bidding procedures; and (2) The Contractor or Subcontractor is not providing direct, retail services to end users within the geographic boundaries of the City. (Added as Administrative Code Sec. 12Q.7 by Ord. 116-01, File No. 010848, App. 5/31/2001; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.10 WAIVER THROUGH COLLECTIVE BARGAINING.

SEC. 121.10. WAIVER THROUGH COLLECTIVE BARGAINING. All or any portion of the applicable requirements of this Article 121 may be waived in a bona fide collective bargaining agreement, provided that such waiver is explicitly set forth in such agreement in clear and unambiguous terms. (Added as Administrative Code Sec. 12Q.8 by Ord. 49-06, File No. 051908, App. 3/24/2006; amended by Ord. 235-20, File No. 201133, App. 11/20/2020, Eff. 12/21/2020, Oper. 3/21/2021; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; amended by Ord. 234-25, File No. 250210, App. 11/28/2025, Eff. 12/29/2025, Oper. 2/27/2026)

SF Labor and Employment Code § 121.11 PREEMPTION.

SEC. 121.11. PREEMPTION. Nothing in this Article shall be interpreted or applied so as to create any power or duty in conflict with any Federal or State law. (Added as Administrative Code Sec. 12Q.8 by Ord. 116-01, File No. 010848, App. 5/31/2001; renumbered as Administrative Code Sec. 12Q.9 by Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.12 EFFECTIVE DATE.

SEC. 121.12. EFFECTIVE DATE. This Article shall become effective, and its requirements shall be included in all covered Contracts, Subcontracts, Leases and Subleases, 30 days after it is adopted or July 1, 2001, whichever occurs later. This Article is intended to have prospective effect only. (Added as Administrative Code Sec. 12Q.9 by Ord. 116-01, File No. 010848, App. 5/31/2001; renumbered as Administrative Code Sec. 12Q.10 by Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.13 PERIOD OF SUSPENSION.

SEC. 121.13. PERIOD OF SUSPENSION. Contracting Parties shall not be required to provide any of the Health Care Accountability Components provided in Section 121.3 to their Covered Employees until such time as the Health Director has prepared, and the Health Commission has approved, minimum standards for health plan benefits pursuant to Section 121.3(a)(1). The Health Director and Health Commission shall proceed promptly to take these actions. From the date upon which the Health Commission approves such minimum standards forward, Contracting Parties shall provide the Health Care Accountability Components set forth in Section 121.3 to their Covered Employees. (Added as Administrative Code Sec. 12Q.10 by Ord. 116-01, File No. 010848, App. 5/31/2001; renumbered as Administrative Code Sec. 12Q.11 by Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

SF Labor and Employment Code § 121.14 SEVERABILITY.

SEC. 121.14. SEVERABILITY. If any part or provision of this Article, or the application of this Article to any person, location or circumstance, is enjoined or held invalid by a court of law, the remainder of this Article, including the application of such part or provisions to other persons, locations or circumstances, shall not be affected by such action and shall continue in full force and effect. To this end, the provisions of this Article are severable. Further, to the extent Section 121.3(a)(2) may be enjoined or held invalid by a court of law, the Contracting Party may alternatively comply in accordance with Section 121.3(c)(2). (Added as Administrative Code Sec. 12Q.11 by Ord. 116-01, File No. 010848, App. 5/31/2001; renumbered as Administrative Code Sec. 12Q.12 by Ord. 49-06, File No. 051908, App. 3/24/2006; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024)

Source: City and County of San Francisco, Charter and Municipal Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/san_francisco/latest/sf_laboremployment/0-0-0-2426Fetched: 11/1/2026