States & corporations reconsidering domestic partner benefits
May 2016 | Allan E. Fogel, Esq.The U.S. Supreme Court ruling legalizing same-sex marriage has led to a number of state and local governments – along with some large corporate employers and universities – to reconsider their domestic partner benefits.
Now that the U.S. Supreme Court has legalized same-sex marriage nationwide, some states and businesses that offer health and retirement benefits to their employee’s domestic partners are considering changing those policies to save money or avoid discrimination lawsuits.
The premise in the past for the need to offer benefits was essentially that individuals in same-sex relationships were unable to marry due to prevailing state laws. Now that they can marry and extend benefits to a spouse, the need for coverage for domestic partners has diminished. Ironically, some couples are now being pushed to marry when that was not their intention.
Domestic partner benefits may be more vulnerable within state and local government, where competition over employees isn’t as fierce as in the private sector and where leaders have been under pressure to keep finances in check since the recession.
However, some large corporate employers such as Delta Air Lines, IBM, and Corning have already done so. IBM gives employees a one-year grace period, although a spokeswoman said the time frame was under review. Delta said that it provided a grace period as well of about two years. And some states have sought rollbacks as well.
Certain advocacy groups are encouraging public and private employers to keep offering domestic partner benefits and extend them to heterosexual couples to avoid discrimination lawsuits. The risk of discrimination suits may cause some states to end their domestic partner benefit program.
Some municipal government employees must now be married to add an adult to their benefits package. Other municipalities now permit employees to add any adult to their plan as long as they live together.
It is too early to know what most employers – both public and private – will do with domestic partner benefits. However, there is no doubt that policies are already changing as a response to the Supreme Court decision legalizing same-sex marriages nationwide.
Employers have to draw a line on whom to cover, but it may become more difficult to delineate exactly where those lines should be as ideas change of what constitutes a family.
Now that the U.S. Supreme Court has legalized same-sex marriage nationwide, some states and businesses that offer health and retirement benefits to their employee’s domestic partners are considering changing those policies to save money or avoid discrimination lawsuits.
The premise in the past for the need to offer benefits was essentially that individuals in same-sex relationships were unable to marry due to prevailing state laws. Now that they can marry and extend benefits to a spouse, the need for coverage for domestic partners has diminished. Ironically, some couples are now being pushed to marry when that was not their intention.
Domestic partner benefits may be more vulnerable within state and local government, where competition over employees isn’t as fierce as in the private sector and where leaders have been under pressure to keep finances in check since the recession.
However, some large corporate employers such as Delta Air Lines, IBM, and Corning have already done so. IBM gives employees a one-year grace period, although a spokeswoman said the time frame was under review. Delta said that it provided a grace period as well of about two years. And some states have sought rollbacks as well.
Certain advocacy groups are encouraging public and private employers to keep offering domestic partner benefits and extend them to heterosexual couples to avoid discrimination lawsuits. The risk of discrimination suits may cause some states to end their domestic partner benefit program.
Some municipal government employees must now be married to add an adult to their benefits package. Other municipalities now permit employees to add any adult to their plan as long as they live together.
It is too early to know what most employers – both public and private – will do with domestic partner benefits. However, there is no doubt that policies are already changing as a response to the Supreme Court decision legalizing same-sex marriages nationwide.
Employers have to draw a line on whom to cover, but it may become more difficult to delineate exactly where those lines should be as ideas change of what constitutes a family.