Chapter 12P of the Administrative Code, the Minimum Compensation Ordinance (MCO) and Chapter 12Q the Health Care Accountability Ordinance (HCAO) are administered by the Office of Labor Standard Enforcement (OLSE). Copies of the ordinances, implementing Rules and Regulations, forms and other information can be found on the following website: www.sfgov.org/olse
Supplemental Certification: The City has developed the MCO and HCAO Compliance Declarations as an administrative convenience for contract administrators. These forms assure the City that the contractor will provide, if applicable, the minimum compensation and health benefits specified in the MCO and HCAO. If a contractor has signed the Declaration, then a department can assume that the contractor is familiar with the MCO and HCAO and is aware of its obligations under the Ordinances.
The MCO and HCAO Compliance Declarations are part of the City's Vendor Packet. Declarations signed by the contractor are to be maintained as supplemental attachments with the vendor packet submitted by the contractor. However, a contractor is not required to sign the declaration to receive a City contract as City contracts contain provisions requiring the contractor to comply with the MCO and/or HCAO, thus providing an assurance of compliance.
Determine Applicability: An agreement and/or a Request-for-Proposal (RFP) are presumed to be covered by the MCO/HCAO and must be incorporated. For contracts subject to MCO/HCAO, both ordinances generally apply to all tiers of subcontracts.
Whether you use one of the Model RFP document (i.e. form P-590) or not keep the MCO/HCAO provisions in the final contract agreement unless the OLSE Unit has made a determination in writing that the MCO and /or the /HCAO does not apply and an Exemption or Waiver is in place.
RFP Processing: Review the RFP and determine if the RFP and the agreement are subject to the MCO and HCAO. You are encouraged to consult with the OLSE, when making this determination. This is preferable to submitting an Exemption and Waiver request after the contractor has been selected and the contract is ready to be executed.
Exemptions and Waivers: All the statutory exemptions and waivers are listed in the Implementing Rules and Regulations. (For the MCO see MCO Regulation #4 & #5. For HCAO see HCAO Regulation #4 & #6.)
If you determine an exemption or waiver could be appropriate fill in the applicable portion of the MCO (form P-360) and HCAO (form P-365) Exemption and Waiver Request. Be sure to cite the appropriate ordinance Section and/or Rule. Have it signed by the department head or authorized representative. Make and keep a copy and forward the original to the OLSE for review and processing. OLSE will review and return a written determination to you.
If the OLSE approves the request, then the Contracting Department may omit the MCO/HCAO language from the RFP and agreement and in cite the exemption or waiver granted under the clause number.
If the OLSE denies a request, then the MCO/HCAO language shall remain in the RFP and agreement.
Contract Processing: You need to incorporate the language set forth into agreements unless the OLSE has made a determination that the MCO/HCAO does not apply and OLSE has confirmed the exemption or waiver in writing.
MCO/HCAO Language in Signed Agreement: If the contractor signs the agreement with MCO and HCAO language in the contract, then process the contract normally. After the department signs, send the package to the City Attorney, and then to Purchasing.
MCO/HCAO Exemption/Waiver Approved: If OLSE approved a MCO/HCAO Exemption or Waiver, a copy of the approved Exemption and Waiver Request form, plus any supporting documentation should be attached to the contract package. After the department signs the contract send the package on for processing to the City Attorney, and then to Purchasing.
Amendments Processing Procedure: The procedure is the same for amendments as for initial contract RFP's.
MCO: Amendments signed after October 8, 2002 must incorporate MCO and require the contractors to provide the minimum compensation components specified in the MCO.
HCAO: Amendments signed after July 1, 2001 must incorporate HCAO and require the contractor to provide the minimum health benefits specified in the HCAO.
OLSE 07-07-06
