SEC. 16.704. REMEDYING DISCRIMINATION AGAINST EMPLOYEES IN

(a) Findings and Purpose. The City and County of San Francisco (City) finds that its own employees with same-sex spouses or same-sex domestic partners suffer both dignitary and economic harm as a result of discriminatory federal laws. In particular, as a result of discriminatory treatment under federal tax laws that impose taxes on health care coverage provided to employees with same-sex, but not those with opposite-sex, spouses, City employees with same-sex spouses or same-sex domestic partners suffer not only the indignities of being treated as second-class citizens by their own government; they also suffer measurable financial harm that is concrete, persistent, and significant, and in some cases immense.

The City is committed to the equitable principle that all City employees receive equal pay for equal work. That principle is unattainable for City employees with same-sex spouses or same-sex domestic partners so long as: (1) state law prevents same-sex couples from marrying; (2) federal law treats the value of employer contributions for same-sex spouses' or same-sex domestic partners' health insurance premiums as taxable income, and does not tax employer subsidies for opposite-sex spouses' health insurance premiums; and (3) federal law prevents the use of pre-tax dollars by employees to pay health insurance premiums for their same-sex spouses or same-sex domestic partners, while allowing the use of pre-tax dollars by employees to pay health insurance premiums for their opposite-sex spouses.

In an effort to offset the discriminatory impact of federal taxation on same-sex spouse and same sex-domestic partner health insurance premiums, and to come closer to achieving the equitable principle of equal pay for equal work, this Section 16.704 requires the City to make payments to City employees who are provided subsidies for, and/or who pay all or part of the premiums for, their same-sex spouses' or same-sex domestic partners' health insurance premiums.

(b) For each City employee Health Service System member who is subject to federal taxation on health insurance premiums (both medical and dental) paid by the City for a same-sex spouse, or same-sex domestic partner, the City shall pay an amount equal to twenty (20%) percent of the portion of the employee's health insurance premiums attributable to the same-sex spouse, or same-sex partner, as determined by the San Francisco Health Service System. These payments shall not be part of the employee's base pay, are not payments made as compensation for hours of employment, and shall not be included in any overtime or premium pay calculations.

(d) Expiration. This Section 16.704 shall expire in its entirety, or as applied specifically to one or more of the following three groups of City employees – employees with same-sex spouses who married in California; employees with same-sex spouses who married outside of California; and employees with same-sex domestic partners – if, and when, the City Attorney's Office certifies to the Mayor and the Board of Supervisors that one or more of those groups of City employees are no longer subject to discriminatory federal income taxation of health insurance premiums attributable to their same-sex spouses or same-sex domestic partners. This Ordinance shall continue to apply to those groups of City employees listed above who continue to be subject to discriminatory federal income tax on health insurance premiums attributable to their same-sex spouses or same-sex domestic partners.

(Added by Ord. 34-13, File No. 121124, App. 3/12/2013, Eff. 4/11/2013, Oper. 7/1/2013)