In many cases, a company's employee benefits program extends to workers' spouses and children. This is partially to help boost retention efforts, but is also motivated by federal and state laws.
Recently there's been the question of whether employers need to cover same-sex spouses with their group health insurance plans. As the more and more states legalize gay marriage, businesses have had to address this issue to become compliant.
For instance, O'Reilly Auto Parts recently agreed to provide medical coverage to same-sex spouses, according to The Seattle Times. The news source reports that O'Reilly started to grant health coverage to same-sex spouses in every state that's legalized gay marriage in early April.
The company initially argued that it didn't have to do this because it self funds its health insurance plan. This means that the federal government is in charge of regulating the coverage, not the state. The Seattle Times explains that "O'Reilly relented just days after the state filed a petition in King County Superior Court to force it to fully explain its decision to deny benefits to same-sex spouses of its employees while extending them to opposite-sex couples" in Washington.
This all came about because some recent changes at the federal level. The Times points out that private companies were unsure what to do once the U.S. Supreme Court declared that all federal agencies have to cover same-sex spouses.
What should companies do?
Though there's no official guidance, at least one federal organization has offered a solution. The U.S. Department of Labor advises employers to provide the same medical coverage to both same- and opposite-sex spouses, according to The Seattle Times.
Equality in health insurance is an important HR topic, especially as gay marriage is legalized in a growing number of states. Once states officially recognize same-sex couples, businesses have to determine whether they are required to offer benefit coverage to all employees and their spouses, regardless of sexual orientation.