In the wake of the United States Supreme Court’s recent Obergefell v. Hodges decision—which guaranteed same-sex couples throughout the U.S. the right to marry—HRE’s Maura Ciccarelli pondered what this landmark decision would mean for employers and HR leaders.
The International Foundation of Employee Benefit Plans was apparently wondering the same when it recently surveyed 258 companies in an effort to gauge how the ruling would influence employers’ approach to offering benefits.
Overall, 53 percent of responding employers said they believe the ruling will have an effect on their organizations. (In total, 57 percent of the companies surveyed reported offering benefits to same-sex domestic partners at the time of the Obergefell v. Hodges decision.)
Take a closer look, however, and the impact figures to be negligible.
For example, just 4 percent of those surveyed by the IFEBP said they anticipate the Supreme Court’s same-sex ruling would be “extremely” impactful, while 6 percent said the ruling would be “very” impactful, and 43 percent indicated the ruling would have “somewhat” of an effect.
Among the companies currently providing same-sex benefits, more than 70 percent said they are likely to continue offering them. Of the remaining respondents who said their organizations are unlikely to continue making benefits available to same-sex domestic partners, nearly all (93 percent) said they only provided such benefits in the past because same-sex couples couldn’t legally marry; which is no longer the case. Forty-four percent of these companies pointed to administrative complexities—documentation, tax and payroll issues, for instance—as the main reason why they plan to discontinue same-sex domestic partner benefits, with 19 percent citing cost as the biggest factor in their decision.
Likewise, the Brookfield, Wisc.-based provider of employee benefits education, research and information asked those who said they plan to continue providing same-sex domestic partner benefits why they have chosen to do so. Fifty-three percent of these employers said they “provide benefits to opposite-sex domestic partners, and want to be equitable,” and 53 percent reported a desire to attract and retain quality employees as the No. 1 driver. Forty-two percent indicated their organizations “recognize all kinds of families,” with another 36 percent saying they feel offering benefits to employees in same-sex domestic partnerships is simply “the right thing to do.”
It seems the majority of employers are in agreement with this group, at least according to this IFEBP poll. Julie Stich, the organization’s director of research, noted as much in a recent statement.
“Despite the Supreme Court’s decision to make same-sex marriage legal, many employers are deciding to continue offering benefits to unmarried domestic partners,” said Stich.
“They see providing benefits—to both same- and opposite-sex domestic partners—as a way to ensure employees and their loved ones are happy and healthy.”