Employers Weigh Options on Domestic Partner Benefits

Strategic Insights -

As same-sex marriage becomes a nationwide law following the Supreme Court's landmark ruling, companies are facing a decision on whether to maintain domestic partner benefits, a perk that has long been offered to employees in same-sex relationships. For some employers, especially those that only offered domestic partner benefits to same-sex couples, the answer is clear: they will likely rescind these benefits altogether. Others, however, will continue to offer these benefits, citing concerns over talent retention and equal opportunities for all employees.

Key Takeaways:

  • Companies that only offered domestic partner benefits to same-sex couples are likely to end them, as they could be subject to reverse discrimination claims.
  • Many employers, especially those with large employee bases, are phasing out domestic partner benefits that are specific to same-sex couples.
  • Some companies, such as Target Corp., are taking their time to review their benefits and make a decision, while others, like U.S. Bancorp and Best Buy Co., have decided to continue offering domestic partner benefits to all couples.
  • The decision to maintain or phase out domestic partner benefits is largely driven by business considerations, including cost and talent retention.
  • The Supreme Court ruling has brought an end to the patchwork of state laws governing same-sex marriage and domestic partner benefits.

Statistics:

  • The University of Minnesota had approximately 19,000 employees, with only about 77 employees still having domestic partner benefits last year.
  • Delta Air Lines, Verizon, and IBM have begun dropping domestic partner benefits in some states.
  • The Mayo Clinic has been giving gay employees a one-year grace period to get married if their partners want to stay on the Mayo health plan.
  • Approximately 60% of the Mayo Clinic's employees are located in states that have legalized same-sex marriage.

Sources:

  • "Companies weighing options on domestic partner benefits" by Kavita Kumar, Star Tribune (no copyright date mentioned)
  • Comments from Molly Snyder, spokesperson for Target Corp.