San Francisco Board approves $13M for workers' compensation amid rising claims

The San Francisco County Board of Supervisors convened on July 4, 2025, to discuss a critical ordinance aimed at addressing rising workers' compensation costs across several city departments. The proposed ordinance seeks to appropriate approximately $13.1 million from the general fund reserves to support the Fire Department, Department of Public Health, Sheriff's Department, and Department of Emergency Management for increased workers' compensation expenses.

Peggy Sugarman, the Workers' Compensation Director with the Department of Human Resources, presented the ordinance, highlighting that the city is experiencing a significant surge in claims—up 34% this fiscal year—largely attributed to COVID-19 infections linked to workplace exposure. The ordinance requires a two-thirds approval vote from the Board of Supervisors, as mandated by the city charter.

Sugarman explained that the funds are necessary to cover legally required benefits for employees who suffer work-related injuries or illnesses. The appropriated funds will be distributed as follows: $6 million for the Fire Department, $3.6 million for the Department of Public Health, $240,000 for the Department of Emergency Management, and $3.4 million for the Sheriff's Department.

The discussion also touched on the broader implications of rising claims, with budget analysts noting that the overall workers' compensation budget would increase from $79.9 million to $93.1 million with this appropriation. Concerns were raised regarding the lack of safety officer positions in some departments, which could potentially mitigate future claims. The Department of Emergency Management currently lacks a safety officer, while the Department of Public Health has funded positions that remain unfilled.

The meeting underscored the need for improved workplace safety measures and staffing to address the increasing claims and associated costs. Supervisors expressed a commitment to continue discussions on these issues during the upcoming budget process, emphasizing the importance of adequately staffing city departments to prevent further strain on the workforce.

Public comment was invited, but no speakers participated, leading to the closure of the public comment period. The Board's deliberations highlighted the urgent need for action to manage the rising costs of workers' compensation and ensure the safety and well-being of city employees.