Healthy San Francisco Challenge Could Hinge on ‘Tip Credit’ Proposal
The director of the Golden Gate Restaurant Association said the organization would consider dropping a lawsuit challenging the Healthy San Francisco program if the city adopts a tip credit permitting restaurants to reduce the minimum wage they pay to wait staff, the San Francisco Chronicle reports (Knight, San Francisco Chronicle, 3/28).
The group's lawsuit seeks to overturn a provision of the Healthy San Francisco program that requires employers in the city to share the cost of employees' health care.
Under the law that created Healthy San Francisco, employers with at least 20 workers must provide health insurance benefits, pay the city for coverage through Healthy San Francisco or contribute to health care accounts for employees.
The program also relies on funding from the city, state and fees from people enrolled in the program.
Healthy San Francisco aims to provide access to health care services for all city residents but it does not constitute health insurance because it only covers services in San Francisco (California Healthline, 3/20).
San Francisco Supervisor David Campos and Mike Casey, president of the local hotel and restaurant workers union, have come out against the proposal (San Francisco Chronicle, 3/28).
State of the Court Challenge
GGRA has asked the U.S. Supreme Court for a temporary restraining order barring the mandatory contributions from employers (California Healthline, 3/20).A ruling on GGRA's request could be issued as soon as today (San Francisco Chronicle, 3/28). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.