San Francisco County Municipal Code Art. 131 Nondiscrimination in Contracts

AND EQUAL BENEFITS REQUIREMENTS* Sec. 131.1. General Provisions. Sec. 131.2. Scope of Article. Sec. 131.3. Definitions. Sec. 131.4-1. Requirements and Obligations Relating to Nondiscrimination in Contracts. Sec. 131.4-2. Requirements and Obligations Relating to Provision of Benefits.

Sec. 131.5. Administration and Remedies. Sec. 131.6. Waivers and Exceptions. Sec. 131.7. Superseding Authority. Sec. 131.8. Severability.

*Editor’s Note: Former Administrative Code Chapter 12B (“Nondiscrimination in Contracts”) was redesignated as Labor and Employment Code Article 131, consisting of Sections 131.1 through 131.7, by Ord. 221-23, File No. 230835, approved November 3, 2023, effective December 4, 2023, and operative January 4, 2024. Labor and Employment Code Articles 131 and 132 were subsequently replaced by a new Article 131 (“Nondiscrimination in Contracts and Equal Benefits Requirements”), consisting of Sections 131.1 through 131.9 which incorporate parts of the previous Articles 131 and 132, by Ord. 192-25, File No. 250192, approved October 16, 2025, effective November 16, 2025, and operative April 1, 2026.

(a) Name of Article. This Article shall be known as the “Nondiscrimination in Contracts and Equal Benefits Ordinance.” (b) Findings. In adopting Section 131.4-2, the intent of the Board of Supervisors is to equalize to the maximum extent legally permitted the total compensation between similarly situated employees with spouses and employees with domestic partners. (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026) (Former Sec. 131.1 added as Administrative Code Sec. 12B.1; amended by Ord. 489-86, App. 12/18/86; Ord. 433-94, App. 12/30/94; Ord. 215-96, App. 5/30/96; Ord. 440-96, App. 11/8/96; Ord. 481-96, App. 12/20/96; Ord. 201-97, App. 5/27/97; Ord. 286-97, App. 7/18/97; Ord. 255-99, File No. 991146, App. 10/8/99; Ord. 101-00, File No. 000476, App. 5/26/2000; Ord. 250- 22, File No. 220702, App. 12/16/2022, Eff. 1/16/2022; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; replaced by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)

As used in this Article 131, the following words and phrases shall have the meanings indicated herein: “Age” means the age of any employee or applicant for employment who has attained the age of 40 years. For the purposes of this Article 131, discrimination because of age means dismissal from employment or refusal to employ or rehire any person because of their age, if such person has

attained the age of 40 years and is physically able and mentally competent to perform the services required. Age limitations for apprenticeship programs in which the State or its political subdivisions participate shall not be considered discriminatory within the meaning of this Article. “Benefits” means bereavement leave, family medical leave, health benefits, membership or membership discounts, moving expenses, pension and retirement benefits, or travel benefits, as well as any similar employment benefits. “City” means the City and County of San Francisco. “Commission” means the Human Rights Commission. The Commission may revocably delegate the administration of this Article 131 to the Contract Monitoring Division within the City Administrator’s Office. References in this Article to the Commission when acting as a Department, rather than as a body, shall be construed to refer to the Contract Monitoring Division where duties have been so delegated. “Contract” means an agreement subject to this Article 131 as stated in Section 131.2. “Contracting Department” or “Department” means the City department, office, commission, or other City entity that enters into the applicable Contract on behalf of the City. “Contracting Officer” means the City official or employee who is authorized to execute a contract, either as a Department Head or as a designee appointed in writing by the Department Head, board, or commission as having the authority to sign contracts for the Department. “Contractor” means any person or persons, firm, partnership, corporation, or combination thereof that enters into a contract or property contract with a Department Head or officer empowered by law to enter into contracts or property contracts on behalf of the City. “Department Head” means the duly appointed General Manager, Director, or Executive Director of a City department having charge and management of said department. “Director” means the Director of the Human Rights Commission. The Director may revocably delegate the administration of this Article 131 to the Director of the Contract Monitoring Division within the City Administrator’s Office. References in this Article to the Director shall be construed as to the Contract Monitoring Division Director where duties have been so delegated. “Disability” means a physical or mental impairment which limits one or more major life activities, and includes being regarded as having such an impairment, or having a record of such an impairment. “Domestic partner” means any person who has a currently registered domestic partnership with a governmental body pursuant to State or local law authorizing such registration. “Gender Expression” means the outward expression of one’s gender identity, which may include, but is not limited to, clothing, hair style, gestures, makeup, or behavior, which may or may not conform to societal expectations typically related to traits associated with a person’s gender identity, sexual orientation, or assigned sex at birth. “Gender identity” means how a person self-identifies their gender, or their internal understanding of their gender. A person’s gender identity may or may not correspond with social norms or stereotypes related to the sex they were assigned at birth. There are many terms related to gender with which a person may identify, including but not limited to: agender; androgynous; bigender; cisgender; cisgender man; cisgender woman; gender fluid; gender non-conforming; gender-expansive; genderqueer, non-binary, pangender, Two-Spirit, transgender, trans, transgender man, transgender woman, masculine, and feminine. One’s gender identity may be described through any number of ever-expanding terms or definitions, and one’s gender identity may be subject to change by the individual. “Property Contract” means a written agreement for the exclusive use or occupancy of real property for a term exceeding 29 consecutive days in any calendar year, whether by singular or cumulative instrument, for the operation or use by others of real property owned or controlled by the City for the operation of a business, social, or other establishment or organization, including leases, concessions, franchises, and easements subject to this Article as stated in Section 131.2. “Protected Category” means race, color, creed, religion, national origin, ancestry, Age, Sex, Sexual orientation, Gender Identity, Gender Expression, domestic partner status, marital status, Disability, Acquired Immune Deficiency Syndrome, AIDS/HIV status, weight, or height. “Qualified disabled employee” means a person able to perform the essential functions of a job with reasonable accommodation. “Sex” means one’s anatomical, physiological, genetic, or physical attributes, and the variation in these attributes that may or may not indicate male, female, or a different sex such as intersex. These attributes may include but are not limited to both primary and secondary sex characteristics, including internal and external reproductive organs, hormone levels, hormone receptors, chromosomes, and genes, all of which may change over time. A person’s sex may or may not align with their gender identity. “Sexual orientation” means one’s physical, emotional, romantic, or sexual attraction to people of a particular gender or multiple genders, or lack thereof, and is distinct from their gender expression or gender identity. A person’s sexual orientation may be identified by terms including, but not limited to, asexual, bisexual, gay, lesbian, heterosexual, homosexual, pansexual, and queer. “Subcontract” means an agreement to (1) provide goods and/or services, including construction labor, materials, or equipment, to a contractor, if such goods or services are procured or used in the fulfillment of a Contractor’s obligations arising from a Contract with the City, or (2) transfer the right to occupy or use all or a portion of a real property interest sub

xual, pansexual, and queer. “Subcontract” means an agreement to (1) provide goods and/or services, including construction labor, materials, or equipment, to a contractor, if such goods or services are procured or used in the fulfillment of a Contractor’s obligations arising from a Contract with the City, or (2) transfer the right to occupy or use all or a portion of a real property interest subject to a Property Contract to a Subcontractor and pursuant to which the contractor remains obligated under the Property Contract, and which in either case is subject to the provisions of this Article pursuant to Section 131.2(d). “Subcontractor” means any person or persons, firm, partnership, corporation, or any combination thereof, that enters into a Subcontract with a Contractor that is subject to the provisions of this Article pursuant to Section 131.2(d). (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026) (Former Sec. 131.3 added as Administrative Code Sec. 12B.3 by Ord. 261-66, App. 10/21/66; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; replaced by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)

(a) Administration of Article. The implementation and administration of this Article 131 shall be conducted by the San Francisco Human Rights Commission, its presiding officer and its Director. The Commission and Director may delegate the duties to the Contract Monitoring Division and its Director. Such delegation is revocable. (b) Rules and Regulations. The Commission, or Contract Monitoring Division if so delegated, shall promulgate rules and regulations for the implementation of this Article 131. (c) Enforcement. (1) Enforcement Relating to Nondiscrimination in Contracts. (A) Findings of Breach. The Contractor or Subcontractor shall be deemed to have breached the nondiscrimination provisions of this Article 131 upon a finding by the Director or such other official who may be designated by the Commission, that the Contractor or Subcontractor has willfully violated such nondiscrimination provisions; or a finding by the State of California that a contractor or subcontractor has violated any provision of the California Fair Employment and Housing Act. (B) Notice and Corrective Action. Upon such finding the awarding authority shall notify the Contractor or Subcontractor that, unless the Contractor or Subcontractor demonstrates to the satisfaction of the Director or other official designated by the Commission within such reasonable period as the Commission shall determine, the violation has been corrected, action will be taken as set forth in subsection (d)(1). (C) Appeals. A process for appeals of findings of breach may but need not be established in Rules and Regulations. (D) Reports. If a finding of discrimination is made by either the Director or the Commission, the contract awarding Department shall submit a report to the Board of Supervisors, the Mayor’s Office, and the Commission that provides details of what actions, if any, the contract awarding Department undertook under this Article 131 because of the finding. (2) Enforcement Relating to Provisions of Benefits. (A) Findings of Breach. The Contractor shall be deemed to have breached the equal benefits provisions of this Article 131 upon a finding by the Director that the Contractor has willfully violated such provisions. (B) Notice and Corrective Action. Upon such finding, the awarding authority shall notify the Contractor that unless the Contractor demonstrates to the satisfaction of the Director that the violation has been corrected, action will be taken as set forth in subsection (d)(2). (C) Appeals. The Director shall be the final arbiter of a Contractor’s compliance or substantial compliance with this Article 131 and the Director’s determination shall not be appealable to the Commission. (d) Remedies for Violations of this Article. (1) Damages and Termination. The awarding authority may deduct from the amount payable to the Contractor or Subcontractor by the City under any Contract or Property Contract subject to this Article 131, or may impose upon the Contractor or Subcontractor, a penalty of $50 for each person for each calendar day during which such person was discriminated against in violation of the provisions of this Article. In addition to any other penalties provided for the violation of the nondiscrimination provisions of this Article or for the failure of any Contractor or Subcontractor to abide by the rules and regulations of the Commission, the Contract, Property Contract, or Subcontract may be terminated or suspended, in whole or in part, by the awarding authority upon the basis of a finding as set forth in subsection (c)(1)(A) that the Contractor has discriminated contrary to the provisions of this Article, and all moneys due or to become due hereunder may be forfeited to, and retained by, the City. (2) Irresponsible Bidder. A breach of the nondiscrimination provisions in the performance of a Contract, Property Contract, or Subcontract shall be deemed by the City to be a material breach of contract and the basis for determination by the awarding authority that the Contractor or Subcontractor is an irresponsible bidder as to all future Contracts or Property Contracts, for which such Contractor or Subcontractor may submit bids. Such Contractor or Subcontractor shall not for a period of up to two years thereafter, or until it shall establish and carry out a program in conformity with the nondiscrimination provisions of this Article, be allowed to act as a contractor or subcontractor under any contract or property contract for the City.

(3) Remedial Compliance. A process for remedial compliance actions may be established in rules and regulations. (4) Withholding. The City may withhold payments under the Contract until the Contractor is in full compliance with this Article 131. (5) Nonexclusive Remedies. Nothing contained in this Article 131 shall be construed in any manner so as to prevent the City from pursuing any other remedies that may be available at law or equity or under any Contract or Property Contract. (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026) (Former Sec. 131.5 added as Administrative Code Sec. 12B.5; amended by Ord. 340-68, App. 12/6/68; Ord. 201-97, App. 5/27/97; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; replaced by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)

(a) Waivers by Director. The Director, or duly authorized designee, may waive in whole or in part the requirements of this Article 131 in the following circumstances: (1) Sole Source. When the Director finds, upon the advice of the awarding authority, that needed goods, services, construction services for a public work or improvement, or interest in or right to use real property are available only from a sole source. (2) Only One Qualified Bidder. When the Director finds, upon the advice of the awarding authority, that there is only one qualified, responsive bidder or proposer who can perform the work under the proposed agreement and who is not at that time disqualified from doing business with the City. (3) No Compliant Bidders. When the Director finds, upon the advice of the awarding authority, that there are no qualified responsive bidders or prospective contractors who could be certified as being in compliance with the requirements of this Article 131. (4) Adverse Impact on Services. Where the Director determines that the public interest warrants the granting of a waiver because application of this Article 131 would have an adverse impact on services or a substantial adverse financial impact on the City, or would circumvent the purposes of this Article. (5) Cooperative Purchasing. When an agreement has been procured under Administrative Code Sections 6.77 or 21.16, and the Director finds that application of this Article 131 would mean (A) a purchase under such arrangement would substantially reduce the City’s cost of purchasing such services; (B) a purchase under such an arrangement is in the best interest of the City; and (C) adherence to the requirements of this Article 131 would prevent the awarding agency from entering into such an agreement. (b) Waiver by Treasurer for Investments. This Article 131 shall not apply to the following; (1) the investment of trust moneys or agreements relating to the management of trust assets, (2) City moneys invested in the City’s investment pool, or (3) the investment of City moneys, where the Treasurer finds that: (A) No person, entity, or financial institution doing business in the City that is in compliance with this Article is capable of performing the desired transaction(s); or (B) Applying this Article would, in the opinion of the Treasurer, violate the Treasurer’s fiduciary duties. (c) Waiver by Public Utilities Commission. The General Manager of the Public Utilities Commission may waive the requirements of this Article 131 where the Contractor is providing wholesale or bulk water, power, or natural gas, the conveyance or transmission of same, or ancillary services such as spinning reserve, voltage control, or loading scheduling, as required for assuring reliable services in accordance with good utility practice, to or on behalf of the San Francisco Public Utilities Commission; provided, that the purchase of same may not practically be accomplished through the City’s standard competitive bidding procedures; and further provided, that this exemption shall not apply to Contractors or franchisees providing direct, retail services to end users within the City. (d) Documentation. All proposed waivers must set forth the reasons the Contracting Officer is requesting the waiver. (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026) (Former Sec. 131.6 added as Administrative Code Sec. 12B.5-1 by Ord. 481-96, App. 12/20/96; amended by Ord. 401-97, App. 5/27/97; Ord. 286-97, App. 7/18/97; Ord. 431-97, App. 11/21/97; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; replaced by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)

(a) Federal or State Law Preemption. The requirements of this Article 131 shall not be in effect in the event they would conflict with federal or State laws, or the City Attorney determines they are reasonably likely to do so. Nothing in this Article shall be interpreted or applied so as to create any requirement, power, or duty in conflict with any federal or State law. (b) Grant or Subvention. If the requirements of this Article 131 would violate or are inconsistent with the terms or conditions of a grant, subvention, or agreement with a public agency or the instructions of an authorized representative of any such agency with respect to any such grant, subvention, or agreement, the requirements of this Article shall not be in effect. (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026) (Former Sec. 131.7 added as Administrative Code Sec. 12B.6; amended by Ord. 261-66, App. 10/21/66; Ord. 286-97, App. 7/18/97; redesignated by Ord. 221-23, File No. 230835, App. 11/3/2023, Eff. 12/4/2023, Oper. 1/4/2024; replaced by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)

If any section, subsection, sentence, clause, phrase, or word of this Article 131, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of the Article. The Board of Supervisors hereby declares that it would have passed this Article and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Article or application thereof would be subsequently declared invalid or unconstitutional. (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)

(a) Operative Date. This Article 131 shall become operative on April 1, 2026 and shall have prospective effect only. (b) Sunset. Unless extended by ordinance, this Article 131 shall expire by operation of law on April 1, 2036. After the expiration, the City Attorney shall be authorized to cause this Article to be removed from the Labor and Employment Code. (Added by Ord. 192-25, File No. 250192, App. 10/16/2025, Eff. 11/16/2025, Oper. 4/1/2026)