This ordinance allows the Health Service System to bypass certain labor laws regarding minimum compensation and health care accountability for its life and long-term disability insurance services contract. It has been officially passed and is now in effect.
Ordinance exempting the Health Service System’s Life and Long-Term Disability Insurance services contract from the requirements of Article 111 (Minimum Compensation) and Article 121 (Health Care Accountability) of the Labor and Employment Code.
How it got here
The legislation originated from the need to exempt the Health Service System's insurance contract from certain labor code requirements to ensure uninterrupted benefits for city employees.
The Health Service Board voted unanimously to award the contract for life and long-term disability insurance to New York Life, following a competitive RFP process.
The Board of Supervisors unanimously approved the Health Service System Plans and Contribution Rates for Calendar Year 2026, including for Basic Life and LTD.
New York Life indicated it would not execute a contract that included obligations under Articles 111 and 121 of the Labor and Employment Code due to compliance tracking issues.
SFHSS requested Supervisor Dorsey to sponsor an ordinance to exempt the insurance agreement from Articles 111 and 121 to finalize the contract and ensure uninterrupted benefits.
The Rules Committee recommended the ordinance for passage to exempt the SFHSS insurance agreement from the labor code requirements.
The Board of Supervisors finally passed the ordinance exempting the Health Service System’s Life and Long-Term Disability Insurance services contract from the labor code requirements.
The Mayor approved the ordinance, allowing the Health Service System to proceed with the contract with New York Life.
Reconstructed from attached documents & the official record
This ordinance approves the health insurance plans and the contribution rates that the city will use for its employees in 2026. It ensures that the city's health service system is funded and operational for that year.
