New York's Marriage Equality Act & Benefits
On June 24, 2011, Governor Andrew Cuomo signed the Marriage Equality Act providing legal rights to same-sex couples that have been limited to opposite-sex couples. The Legislation, which legalizes same-sex marriage in New York State, went into effect on July 24, 2011.
The Act amends New York's Domestic Relations Law and states that:
- A marriage that is otherwise valid shall be valid regardless of whether the parties to the marriage are of the same of different sex.
- No government treatment or legal status, effect, right, benefit, privilege, protection or responsibility relating to marriage shall differ based on the parties to the marriage being the same sex or a different sex.
- No application for a marriage license shall be denied on the ground that the parties are of the same or a different sex.
"Religious Organizations", who are exempt from the Act, are not required to solemnize same-sex marriages or to treat same-sex partners as spouses. These are religious entities, benevolent organizations and not-for-profit corporations that are operated, supervised or controlled by religious entities.
Benefits that are governed by federal laws (i.e. ERISA and DOMA) will not be affected by the Marriage Equality Act. For example, a same-sex spouse will not be recognized or covered under COBRA, HIPAA, or the Family Medical Leave of Act. Additionally, self-insured health plans are not legally required to offer benefits to same-sex spouses. However, an employer with a self-insured health plan can voluntarily opt to offer comparable benefits to same-sex spouses.
As of July 24, 2011, fully insured welfare plans issued in New York must offer same benefit coverage to same-sex spouses that are offered to opposite-sex spouses. This includes medical, dental, group long-term disability, group short-term disability, and group term life insurance plans.
At this time, same-sex spouse contributions will remain taxable under both Federal and New York State tax codes. Under current New York State Tax Law, a taxpayer's marital status for New York State taxes is the same as the taxpayer's marital status for federal taxes.
It is expected that the New York State Department of Taxation and Finance will issue guidance on how same-sex spouses should be treated under New York State Tax Law. Until guidance is issued, employers should wait to change their taxation practices on same-sex spouse contributions.
Given the mandates of the Marriage Equality Act, New York State employers need to carefully review their benefit plans, as well as policies and employee handbooks, to ensure they are in compliance with the law as of July 24, 2011.
Actions for Employers
1. For fully insured plans in New York, review insurance plan documents, summary plan descriptions and insurance plan contracts to ensure that the definition of "spouse" includes same-sex spouses. Amend plans and contracts as necessary.
For self-insured welfare plans that are governed by ERISA, review and amend documents, insurance and third party contracts to ensure that they clearly define "spouse". The definition of "spouse" will be dependent on whether or not they opt to offer benefits to same-sex spouses.
2. Review and update benefit communication materials, policies and employee handbooks to include same-sex spouses where applicable.
3. Review domestic partner policies and determine if any updates are required due to the legislation.
4. Contact your employment attorney if you need assistance with reviewing your benefit plans in light of the new law.
