April 26, 2004

The Astron Road Show

If it’s spring that means that the Astron team is gearing up for another busy Road Show season!  You can visit our Road Show anytime on our website.

May is a busy month for the Road Show.  National Director Jennifer Loftus will be exhibiting at the College and University Personnel Association (CUPA) Eastern Region conference May 2-5 in Newport, RI.  Jennifer will also present a concurrent session with Kathryn Fisk, of University Hospitals Health System (Cleveland, OH) and ASHHRA President-elect, on the impact of effective exit interview programs on employee retention and the financial bottom line. 

On May 7, National Director Michael Maciekowich will be exhibiting at the Massachusetts Hospital Association’s Annual Labor Forum in Framingham, MA.  On May 12, he will be exhibiting and presenting at the Atlanta HR Star Conference.  Mike will speak on “5 Easy HR Strategies to survive the 2004 Recovery.”

Contact Sharon Terry for copies of either or both presentations, or more information on any of these events.

The Impact of Same Sex Marriage on HR Programs

It’s difficult to pick up a newspaper or turn on the television lately without hearing something on the topic of same-sex marriage.  In conjunction with the increasing amount of same-sex unions, and the possibility of future gay marriage legislation, there is a growing trend among major US corporations, who are warming to the concept and have made benefits available for their GLBT (Gay, Lesbian, Bi-sexual, and Transgender) employees and their partners. 

According to the Human Rights Campaign, the number of employers offering domestic partner health benefits have grown significantly within the last 20 or so years.  The current number of U.S. employers offering these benefits has reached 7,360, a huge increase from 1982 when New York’s Village Voice newspaper became the nation’s first employer to offer same-sex benefits.  The business boom of the 90’s, along with the need to recruit talent in a competitive market, prompted many top employers to offer partner benefits.  Lotus Development, Microsoft, and Boeing all began offering partner benefits in the 1990’s.  Today, approximately 23% of companies offer domestic partner benefits according to a 2003 survey conducted by the Society for Human Resource Management (SHRM). 

Same-sex unions pose certain new challenges for companies’ benefits programs.  In general, The Defense of Marriage Act (DOMA) is a US federal law defining marriage as "a union of a man and a woman." However, it gives each state the jurisdiction to recognize same-sex marriages, as long as there are no conflicts with that state’s laws.  As stated in the article, “Responding to Same-Sex Marriage” (HR Innovator March 2004), many states do not recognize marriages from other states when issues of age and genealogy are concerned.  If, however, it is a legal civil union or same-sex marriage, and further, if employers want to ensure that all of their employees and their partners receive equal benefits, certain policies must be reviewed and changed.  In addition, organizations with nondiscrimination policies must realize that not offering benefits to same-sex couples can be construed as discriminatory based on sexual orientation.   

Opponents to same-sex marriage argue that including same-sex partners in health coverage will cause benefits costs to soar.  However, as stated in SHRM’s Total Rewards Forum article, “Same-Sex Benefits: Untangling HR’s Responsibilities,” the number of employees taking advantage of domestic partner benefits is low, with an average enrollment rate that tends to fall below 2%. 

Employers who would like to include same-sex partners in their health insurance will have to change the definitions of spouses and families in their policies.  Other insurance policies such as life or disability commonly allow the policyholder to designate his or her own beneficiary, so these types of insurance would not be affected.  In addition, Family and Medical Leave (FMLA) policies would also need to be updated to allow employees the ability to take leave in order to care for their partners.  Employers must also be prepared to confront issues regarding the fairness of offering benefits to same-sex couples and not to unmarried opposite-sex couples.  

In addition, employers will also have to revamp their discrimination policies to include same-sex marriage and promote diversity.  Eighteen states currently have laws prohibiting sexual orientation discrimination in the workplace.              

It should also be kept in mind that spousal benefits are not taxed, while partner benefits are taxed.  It may be wise for employers to keep partner benefit paperwork separate from spousal benefits in order to avoid accounting confusion, and to better prepare for the possible federal legalization of same-sex marriage in the future.

For now, employers should stay on top of the issue and be prepared for any legislative changes that may occur.  If US demographics and federal legislation are in the midst of change, your company must be prepared to change too.

What's your perspective on the impact of same sex marriages?  Be sure to vote in this week's on-line poll!

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Looking for a top-notch presenter for your human resource organization's meeting? Both Jennifer Loftus and Michael Maciekowich present highly-rated sessions on a variety of compensation and employee retention issues. For more information, send an e-mail to info@astronsolutions.com.

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ISSN Number 1549-0467