Wages and Benefits Information Center

Domestic-Partner Benefits

Increasingly employers are offering to their unmarried employees in domestic partnerships the same or similar benefits as those provided to married couples. Usually the employer's offer of domestic-partner benefits is voluntary, but sometimes these benefits are required by law. An experienced employment law attorney at our firm can answer your questions about domestic-partner benefits.

Evolution

In 1982 a New York newspaper was the first US employer to offer same-sex domestic-partner benefits. Today a majority of large US corporations offer domestic-partner benefits, usually to both opposite-sex and same-sex unmarried couples, but occasionally to one type or the other.

Many employers offer domestic-partner benefits to remain competitive or to attract a diverse workforce, while others are motivated by fairness and good will. Sometimes domestic-partner benefits are legally required.

Laws across the country affecting domestic partners vary greatly. Some states in the West Coast and Northeast regions recognize civil unions or have strong domestic-partnership laws. Some local governments across the country have established domestic-partner registries, sometimes for both opposite-sex and same-sex couples.

The state of California and some local governments across the country have enacted equal-benefits laws requiring government contractors to provide domestic-partner benefit coverage equal to marital coverage as a condition of obtaining certain types of contracts. California also requires with some exception that insurance policies offer the same benefits to domestic partners as they do to spouses. By contrast, the Georgia Insurance Commissioner only allows insurance companies to offer domestic-partner coverage to couples who have entered into ceremonial or common-law marriages as defined by Georgia law.

The interaction and impact of such diverse laws create myriad complex legal questions for employees and employers surrounding benefits for domestic partners. The counsel of a knowledgeable employment lawyer can be essential.

What Is a Domestic Partnership?

A domestic partnership is usually understood to be a couple comprised of two unrelated, unmarried, committed adults in the same household who are interdependent emotionally and financially. An employer offering domestic-partner benefits may require proof of the relationship, such as evidence of a civil union or domestic-partner registration or joint financial records, contracts or leases. Employers often require a waiting period to add a domestic partner to a benefit program and an employee may have to sign a sworn statement.

Covered Benefits

Many domestic-partner benefit plans offer only minimal, low-cost benefits such as funeral leave, family leave, relocation expenses, use of employer facilities and inclusion in company functions. Of greater importance to employees is medical or dental insurance. Historically some employers have been hesitant to extend more expensive benefits to domestic partners, but it has become clear over time that the cost of adding domestic-partner coverage to a health-insurance plan is usually negligible.

Tax Consequences

Domestic-partner benefits are taxed differently than married-couple benefits. No tax consequence follows for the family when an employer provides health insurance for the employee's spouse and legal dependents. However, an employee whose partner receives domestic-partner benefits must include the cost of those benefits as taxable income unless the partner meets the Internal Revenue Service (IRS) definition of a legal dependent or qualifies as a spouse under state law.

Conclusion

As employment benefits are extended to domestic partners of employees more frequently, the related legal issues will continue to change and evolve. A skilled employee benefit attorney at our firm will be able to give you current advice on domestic-partner benefit plans.

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