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Domestic Partner Laws Pose New Challenges for California's Employers
Michael Minguet, Esq.
Paul, Plevin, Sullivan & Connaughton, LLP
The past few years have seen the introduction of several laws that have effectively created a new class of protected individuals in California: registered domestic partners. Broad in scope and thin on detail, these new laws pose new
challenges to businesses seeking to navigate the murky waters of California's employment laws.
Beginning in 2005, the California Insurance Equity Act requires group health care service plans and health care insurers to provide equal benefits to registered domestic partners and married couples. Although the law does not apply
directly to employers, California employers can no longer purchase health plans that offer benefits only to spouses or plans that provide unequal benefits.
Whether the Insurance Equity Act applies to self-insured plans remains unsettled and debatable. Some employers have taken the position that application of the Equity Act to their self-insured health plans is preempted by federal law, and
they do not need to comply. Cautious employers may want to assume that the law applies to their self-insured plans and provide equal benefits.
The trend among major companies is to extend health insurance benefits to same-sex partners of employees. Ultimately, the decision on whether to extend health benefits to registered domestic partners should be reached after careful
consideration and assistance from counsel.
Another law that became effective in 2005, California's Domestic Partner Rights and Responsibilities Act, marks a significant change to California's legal landscape. In short, this law extends to registered domestic partners the same
"rights, protections, and benefits" granted to married couples.
Although lacking detail, it is designed to be broad and far-reaching. It applies to a wide-range of legal issues, including property rights, tax and financial matters, death-related rights, parental protections, and, perhaps most
importantly for California businesses, employment rights.
What does this new law mean for California employers? In short, employers should follow a simple rule: Treat registered domestic partners the same as spouses in terms of all policies and discretionary benefits. For instance, registered
domestic partners are now entitled to the same family and medical leave under the California Family Rights Act as spouses, so employers should make sure that their leave policies and practices are updated to reflect this change.
Treating registered domestic partners differently than spouses potentially exposes employers to liability for discrimination under California's anti-discrimination laws. Employers must be wary of domestic partner issues and, when in
doubt, seek the advice of counsel.
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