Employers based outside Vermont will have to provide the health coverage to same-sex spouses of Vermont residents if a just-passed bill is enacted. The Vermont House of Representatives passed the measure on March 15; the state Senate followed suit on March 19. It now goes to Gov. Peter Shumlin (D). If he signs it, the measure will go into effect July 1.
H. 315 says that employers based outside of Vermont would have to provide the same health coverage they provide their employees’ opposite-sex spouses to same-sex spouses, as well as civil union partners, of employees who are Vermont residents.
The measure will heighten complications for benefits administrators if it becomes law. Since the federal Defense of Marriage Act does not recognize civil unions and same-sex marriage, federal tax law does not extend the tax breaks accorded employees’ opposite-sex spouses to same-sex spouses and civil union partners. That differs from the state tax treatment in a state like Vermont, where same-sex marriage is legal. So an employer subject to federal law and Vermont law will have to adjust its administrative practices to accommodate these differing approaches to such benefits and coverage.
Further coverage is available through Thompson’s HR Compliance Expert. More information on same-sex marriage is available in Thompson’s Domestic Partner Benefits: An Employer’s Guide.