The Ninth Circuit Court of Appeals Allows San Francisco’s Health Care Security Ordinance to Take Effect

In August 2006, San Francisco’s mayor signed into law the San Francisco Health Care Security Ordinance (HCSO). The HCSO requires certain employers operating with the geographic limits of the City and County of San Francisco (City) to make specified “per hour” health care expenditures on behalf of their San Francisco covered employees. The HCSO was scheduled to take effect on January 1, 2008.

An employers’ group, the Golden Gate Restaurant Association (GGRA), challenged the validity of the HCSO, arguing that it was preempted by ERISA. On December 26, 2007, the U.S. District Court for the Northern District of California agreed, issuing an order granting the GGRA’s motion for summary judgment, thereby invalidating the HCSO.

For the full story, please view the PDF.