Healthy SF Settlement
In Our Words
We would like to take this opportunity to address our recent settlement with the city of San Francisco. Thank you for taking a moment to read our story.
In the beginning of 2011, we noticed that we’d made a reporting error in 2009 and 2010 on the health insurance account balances for our employees. When we found this error, we corrected it immediately and in accordance with Healthy SF regulations. When the city contacted us about this matter in late 2012, we had already been in full compliance for over a year.
We want our customers to know that Patxi’s has never spent money collected through surcharges on anything other than healthcare for our employees. Unused surcharge funds were set aside to pay future healthcare claims filed by Patxi’s employees. Additionally, no employee was ever denied reimbursement for a Healthy SF claim submitted to us.
We’d like to offer our sincerest apologies to our patrons who feel they’ve been wronged or mislead by Patxi’s as a result of this news. We are 100% committed to the health and wellbeing of every Patxi’s employee. One example took place last year when one of our managers suffered a stroke prior to his health coverage becoming active. We informed his family that we would keep him on payroll indefinitely, even if he were never able to work again. At Patxi’s, our employees are our family.
In an effort to correct our error, we will be paying 115 current and former employees 100% of the health benefits they accrued during 2009 and 2010, totaling $205,000, as described in our settlement with the city. In addition, we will actually be increasing the money we spend on employee healthcare by about $100,000 – which is above and beyond what Healthy SF regulations ordinarily require.
Like many San Francisco establishments, we’ve come to understand the confusion and even frustration menu surcharges have caused our patrons. In August of 2012, we eliminated the healthcare surcharge from our menu, and this year, we will be removing all surcharges from our menu. Instead, we will be adjusting our menu pricing at our San Francisco locations to ensure that sufficient funding is available for our employees in accordance with the Healthy SF regulations.
Our employees come first, always. Thank you for taking the time to read the facts, and we hope to see you soon.
CEO, Patxi’s Pizza