If you work in a restaurant in California, you may have wondered: Do I have health insurance options? The answer is yes, and the good news is that California has some of the strongest worker protections in the country. Health insurance for restaurant employees is not just a perk; in many cases, it’s a legal requirement for employers to provide coverage.
With rising medical costs, having health insurance can mean the difference between getting the care you need or facing financial hardship. Whether you’re a server, chef, bartender, or dishwasher, understanding your options is crucial. This guide will walk you through the laws, types of coverage, employer responsibilities, and alternative insurance plans available to restaurant employees in California.
Why Health Insurance for Restaurant Employees Matters in California
California is home to over 1.9 million restaurant workers, making up nearly 11% of the state’s total workforce. Restaurants are a vital part of the economy, but they often come with low wages, unpredictable schedules, and limited benefits. Many employees rely on tips to supplement their income, making health insurance seem like an extra cost they can’t afford.
However, medical emergencies don’t wait for payday. Whether it’s burns from the kitchen, injuries from carrying heavy trays, or illnesses from working long hours, restaurant workers face unique health risks. That’s why understanding your health insurance options is essential—it ensures you can get medical care when needed without massive out-of-pocket expenses.
Health Insurance Requirements for Restaurant Employers in California
In California, the law mandates certain employers to provide health insurance to their employees. Here’s what you need to know:
1. The Affordable Care Act (ACA) and Employer Mandate
Under the Affordable Care Act (ACA), restaurants with 50 or more full-time employees (working 30+ hours per week) must provide affordable health insurance to their workers. If they don’t, they could face penalties from the IRS.
- The plan must cover at least 60% of healthcare costs.
- Employees cannot be charged more than 9.12% of their annual income for the insurance premium (as of 2023).
If your restaurant employer meets these requirements, they are legally required to offer you health insurance or pay a fine.
2. California’s Health Insurance Mandate
California takes the ACA a step further with its state mandate. Since January 1, 2020, all Californians are required to have health insurance or pay a penalty when filing taxes. If your employer does not offer health coverage, you must get it through other means (which we’ll discuss below).
3. Health Care Security Ordinance (San Francisco Only)
If you work in San Francisco, your employer may be required to contribute to your health care—even if they don’t offer insurance. Restaurants with 20+ employees in San Francisco must:
- Provide health insurance, OR
- Contribute to a Health Reimbursement Account (HRA) that helps cover medical expenses.
If you’re unsure whether your employer complies, ask your manager or HR representative.
Health Insurance Options for Restaurant Employees
If your restaurant does not provide insurance or if you need additional coverage, here are your options:
1. Covered California (State Health Exchange)
California operates its own health insurance marketplace, Covered California, where individuals can buy affordable plans.
- Subsidized Plans: If your income is between $20,120 and $58,320 (for a single person in 2024), you may qualify for financial assistance to lower your premium.
- Medi-Cal Expansion: If your income is below $20,120 annually, you could be eligible for free or low-cost Medi-Cal coverage.
2. Medi-Cal (Free or Low-Cost Health Insurance)
Medi-Cal is California’s Medicaid program, providing free or low-cost insurance for those who qualify. If you:
- Earn less than 138% of the federal poverty level (FPL)
- Are pregnant, disabled, or have dependent children
3. Group Health Plans via Restaurant Industry Associations
Some restaurant industry groups offer group health insurance for workers. These plans may be more affordable than individual insurance. Organizations like:
- California Restaurant Association (CRA)
- National Restaurant Association (NRA)
4. Short-Term Health Insurance
Short-term health insurance is not ideal for long-term coverage but can be useful if you’re between jobs or waiting for employer coverage. These plans:
- Are typically cheaper but cover fewer medical services
- May not cover pre-existing conditions
- Are only available for up to 12 months in California
5. Employer-Sponsored Plans from Other Jobs
If you have a second job (such as a gig worker, delivery driver, or freelancer), check if they offer health benefits. For example, some large corporations offer part-time workers health insurance, including:
- Starbucks (for employees working 20+ hours per week)
- Costco (for part-time employees)
- Amazon (after a certain period of employment)
What to Do If You Can’t Afford Health Insurance
If you don’t qualify for employer-sponsored insurance and can’t afford private insurance, you still have options:
- Apply for Medi-Cal – Even if you don’t qualify based on income, you might be eligible for special circumstances (such as pregnancy or disability).
- Look for Sliding-Scale Clinics – Some community health centers provide low-cost medical care based on your income.
- Check for Local Health Programs – Some counties have additional health programs for low-income residents.
Final Thoughts
Health insurance for restaurant employees in California is not just a benefit—it’s a necessity. With the high cost of medical care, being uninsured puts workers at risk of financial hardship. Thankfully, state laws, employer requirements, and public assistance programs offer multiple coverage options.
If you work in a restaurant and need health insurance, start by:
Checking if your employer offers a health plan Applying for Covered California or Medi-Cal if eligible Exploring industry group insurance or part-time job benefits
Every worker in California deserves access to affordable healthcare. Don’t wait until you’re sick or injured—explore your options today!
