A Progress Report on Gay Employee Health Benefits

Updated | 3/4/13 with new details in chart.

The Cost of Being Gay

A look at the financial realities of same-sex partnerships.

A growing number of companies are covering the extra costs that same-sex couples pay for domestic partner benefits — and even more companies are thinking about it. So we’ve decided to keep track of who is doing what in a chart at the bottom of this post.

While many companies offer domestic partnership coverage — an important benefit on its own since same-sex couples’ unions are not recognized by the federal government — some pioneering organizations are extending an even more generous policy. They’re essentially reimbursing gay employees for the extra taxes they may incur as a result of that coverage, something that married heterosexual people don’t have to worry about.

Why is this an issue? Gay and lesbian employees who are lucky enough to work at places that have domestic partner coverage are taxed on the value of those benefits (if the partner is not considered a dependent). A handful of companies cover those extra costs, but not until Google adopted that policy earlier this year did the movement to equalize benefits begin to gain traction. Apple is the latest boldface name to join the effort.

A provision within a draft of the health care overhaul bill would have eliminated the tax, but it was ultimately dropped. The Human Rights Campaign said it continued to work on getting a bill passed, but until that happens — if it ever does — employees or their employers must pay the extra tax. (Many companies will cover the costs only for same-sex partners, since opposite-sex couples have the option to marry.)

“Companies that are doing the right thing are doing so at a cost to themselves, and the simplest way to address this inequity is to have the law changed to support or make it easier for them to have equal benefits,” said Daryl Herrschaft, director of the Human Rights Campaign’s Workplace Project.

Several readers sent us tips on companies that decided to make the change, and they appear on the list below. We also called several large companies that publicly supported the legislation — as part of a coalition led by the Human Rights Campaign — and asked if they planned to adopt the policy, even in the absence of a law.

The biggest deterrent, of course, is the cost. Many companies support efforts to eliminate the tax altogether, but they’re unwilling to cover the costs employees now face.

Roughly speaking, it would cost an employer about $2,000 to $2,500 to reimburse — or  “gross up” — an employee who incurred extra taxes of $1,200 to $1,500, according to Joseph S. Adams, a partner at McDermott Will & Emery who specializes in employee benefits. The numbers will vary depending on several factors, including the employee’s tax bracket and state of residence. This example assumes a 25 percent federal tax bracket (and includes rough estimates for state, local, and employment taxes for Social Security and Medicare, bringing the total rate to about 40 percent).

Wish your company’s name was on the list with a “Yes” next to it? The Human Rights Campaign has a proposal and other information on its Web site that employees can use to help build their case. Please continue to send us more names of companies that have added this benefit or specifically declined to do so, or drop them in the comment section below. We’ll update our chart accordingly.

Here’s what the companies said:

*Part of the Human Rights coalition that supported the legislation

Technology Companies Reimburses Now Plans to Adopt Policy
1. Google Yes Effective July 2010; retroactive to Jan. 2010
2. Facebook Yes Effective 2011
3. Apple Yes Effective 2011
4. Cisco Yes
5. Microsoft* Yes Effective Jan. 1, 2012
6. Yahoo Yes Effective Jan. 1, 2012
7. Motorola* No No
8. Intel* No No current plans
9. Hewlett-Packard* Declined to comment Declined to comment
10. I.B.M.* No Continues to monitor situation
11. Texas Instruments* No No plans at this time
12. Xerox* No No plans at this time
13. Corning* No No plans at this time
14. Symantec Yes Jan. 2012
Financial Services Companies Reimburses Now Plans to Adopt Policy
1. Barclays Yes Effective Jan. 2011
2. Bank of America* Yes Effective Jan. 2012
3. Citigroup* No Declined to comment
4. JPMorgan Chase* Yes Effective Jan. 2012
5. Goldman Sachs* Yes Effective July 2011; retroactive to Jan. 2011
6. Morgan Stanley* Yes Yes, effective Jan. 1, 2012
7. Capital One* No Currently reviewing
8. Charles Schwab* No No current plans
9. Prudential Financial* No Declined to comment
10. State Street* No No
11. TIAA-CREF* No Continues to monitor situation
12. Russell Investments* No Reviewing the extra costs this year
13. Ameriprise Financial* No No plans at this time
14. Moody’s* No Currently reviewing
15. HSBC North America* No “Continues to evaluate in context of workforce diversity goals.”
16. Credit Suisse Yes Effective Jan. 2011
17. Depository Trust & Clearing Corporation Yes Effective Jan. 2011
18. BNP Paribas Yes Effective Jan. 2011
19. American Express Yes Effective Jan. 2012
20. Deutsche Bank Yes Effective Jan. 2012
21. TD Bank No Effective Jan. 1 2013
Insurance Companies Reimburses Now Plans to Adopt Policy
1. Aetna* No Continues to monitor situation
2. The Chubb Corp.* No No plans at this time
3. Nationwide* No Currently assessing
4. MetLife* No No
5. CNA* No “Has no confirmed plans for additional benefits at this time.”
6. Blue Cross Blue Shield of Minn.* No “Considering for the future.”
7. Massachusetts Mutual Life Insurance* No Declined comment
8. Marsh & McLennan No Yes, Jan. 1, 2013
Cable/Wireless and Media Companies Reimburses Now Plans to Adopt Policy
1. Time Warner* Effective Jan. 2013
2. Verizon* No No current plans, but always reviewing its policies
3. The New York Times No No
4. Thomson Reuters* Yes Effective Jan. 2012
5.  Bloomberg  Yes  Announced Dec. 2011, but retroactive for 2011 plan year.
Consumer-related Companies Reimburses Now Plans to Adopt Policy
1. Discovery Channel Yes
2. Nike* No “No current policy, but continues to review benefits and policies.”
3. Best Buy* No No plans at this time
4. General Mills* Did not respond to repeated inquiries
5. Levi’s* No No plans at this time
6. Miller-Coors* No No
7. Eastman Kodak* Did not respond to repeated inquiries
8. Herman Miller* No No
9. Diageo* No “Considering it as part of a continual evaluation towards workforce diversity goals.”
10.
Nonprofit Organizations Reimburses Now Plans to Adopt Policy
1. Gates Foundation Yes
2. Unitarian Universalist Association Yes (since 1994)
3. Teach for America Yes
4. National Society of Collegiate Scholars Yes Yes, in Sept. 2011; will apply to both same-sex and opposite-sex domestic partners
Consulting Companies Reimburses Now Plans to Adopt Policy
1. Bain & Co. Yes Effective 2011
2. Boston Consulting Group Yes Effective 2011
3. Ernst & Young* Yes Effective Jan. 2012
4. PricewaterhouseCoopers* Yes Effective Jan. 2012
5. Deloitte* Yes Effective June 3, 2012
6. KPMG* Yes Effective Feb. 2012; will cover entire 2012 tax year
7. McKinsey Yes Effective Jan. 2011
8. Accenture Yes Effective Jan. 2012
9. L.E.K. Consulting Yes Effective July 2011
10. RSG Inc. Yes Effective Jan. 2013
Drug and Medical Companies Reimburses Now Plans to Adopt Policy
1. Medtronic* No Currently evaluating
2. Merck* No Currently evaluating
3. GlaxoSmithKline* No No plans at this time
4. Bausch + Lomb* No No plans at this time
5. Boehringer Ingelheim Pharmaceuticals* No No immediate plans, but it’s under discussion
6. Cardinal Health* No No current plans, but  continues to evaluate options
7.
Travel-related Reimburses
Now
Plans to Adopt
Policy
1. Kimpton Hotels Yes
2. Marriott* No No current plans
3. American Airlines* No No plans at this time
4. Delta Airlines* Did not respond to repeated inquiries
5. Carlson* No Continues to monitor industry trends
6. JetBlue Yes
Law Firms Reimburses Now Plans to Adopt Policy
1. Morrison & Foerster Yes Effective 2011
2. McDermott, Will & Emery Yes Effective Jan. 2011
3. Cadwalader, Wickersham & Taft Yes, since ’99
4. Bingham McCutchen* Yes Effective 2011
5. Cullen Weston Pines & Bach* No Formal policy under consideration
6. Skadden, Arps, Slate, Meagher & Flom Yes Adopted in May 2011. Retroactive to Jan. 1
7. Simpson Thacher & Bartlett Yes Effective April 2011
8. Debevoise & Plimpton Yes Effective June 2011
9. O’Melveny & Myers Yes Effective Jan. 2010
10. McCarter & English Yes Effective June 16, 2011
11. Winston & Strawn Yes Effective Jan. 1, 2011
12. Orrick, Herrington & Sutcliffe Yes Effective Jan. 1, 2011
13. BuckleySandler Yes Effective Jan. 1, 2011
14. Weil, Gotshal & Manges Yes Effective Jan. 1, 2011
15. Fried Frank Yes Effective Sept. 1, 2011
16. Shearman & Sterling Yes Effective July 1, 2011. Retroactive to Jan. 1
17. Ropes & Gray Yes Effective Jan. 1, 2011
18. Reed Smith Yes, since 2008
19. Chadbourne & Parke Yes Effective Jan. 1, 2011
20. Munger, Tolles & Olsen Yes Effective Jan. 1, 2011
21. Baker & McKenzie Yes Effective Jan. 1, 2012
22. Mintz Levin Yes Effective Jan. 1, 2012
22. Boies, Schiller & Flexner Yes Effective April 1, 2012
23. Cleary Gottlieb Yes Effective July 1, 2011
24. Irell & Manella Yes Effective Jan. 1, 2012
25. Pillsbury Winthrop Shaw Pittman Yes Effective Jan. 1, 2012
26. Sidley Austin Yes Effective Jan. 1, 2012
27. Akin Gump Strauss Hauer & Feld Yes Effective Jan. 1, 2012
Metals, Mining and Energy Companies Reimburses Now Plans to Adopt Policy
1. Alcoa* No No plans at this time
2. Exelon* No No plans at this time
3. PG&E* No No immediate plans, but continues to monitor situation
4. Sempra Energy* No “Our goal is to end the discriminatory practice, not pay for its continuation.” But it will “continue to monitor the situation” and routinely review its policies.
5. Opower Yes; Employees married to same-sex partners only Jan. 1, 2012
Education Institutions Reimburses Now Plans to Adopt Policy
1. Bowdoin College Yes. Applies to same-sex and opposite-sex partners. Adopted in 2010
2. Syracuse University Yes Adopted Jan. 2011
3. Columbia University Yes Effective Jan. 2012
4. Yale University Yes Effective Jan. 2012
5. Barnard College Yes Effective Jan. 2012
6. University of Pennsylvania No July 1, 2012
Municipalities Reimburses Now Plans to Adopt Policy
1. City of Cambridge, Mass. Yes Effective July 2011