San Francisco Restaurants Speak Out Against Benefits Laws

Restaurant owners in San Francisco are condemning two citywide health care laws that they expect will drive up costs and hurt their business, the San Francisco Chronicle reports.

The city last week became the first in the country to require all businesses to offer paid sick leave for all employees (Raine, San Francisco Chronicle, 2/13).

Under the law, employees will accrue one hour of paid sick leave for every 30 hours worked. Businesses with fewer than 10 employees must limit accrual to 40 hours per employee, and businesses with 10 or more employees have an accrual limit of 72 hours per employee (California Healthline, 2/6).

The restaurant industry also is critical of the city's Health Access Program, set to take effect in July. The program is intended to provide access to health care services for all city residents (San Francisco Chronicle, 2/13).

Businesses are expected to contribute $28 million through an employer-contribution mandate (California Healthline, 2/9).

The 800-member Golden Gate Restaurant Association last year filed a lawsuit against the city seeking to block the employer-contribution mandate, arguing that municipalities do not have the authority to impose such requirements.

Three years ago, the city also increased its minimum wage by $1.75 per hour, further increasing restaurants' costs (San Francisco Chronicle, 2/13).