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CBS, Google, Levi’s, Starbucks: 70 Companies Say DOMA Hurts Business

by David Badash on November 5, 2011

in Civil Rights,Economics,Marriage,News,Politics

Post image for CBS, Google, Levi’s, Starbucks: 70 Companies Say DOMA Hurts Business

CBS, Google, Levi’s, Starbucks, New Balance, and Xerox are among the 70 companies and cities that have signed an amicus brief stating that DOMA, the 1996 federal Defense of Marriage Act, hurts business. DOMA bans the federal government from recognizing same-sex marriages and has already been declared unconstitutional in federal court, as well as by President Obama and by Attorney General Holder.

“In essence, the amicus brief argues, ‘the employer becomes the face of DOMA’s discriminatory treatment’,” writes Janet Tu at the Seattle Times.

To attract the best employees, companies have to offer robust benefits and a “workplace ethos of transparent fairness,” the brief says. But “DOMA forces amici to investigate the gender of the spouses of our lawfully married employees and then to single out those employees with a same-sex spouse. DOMA enforces discriminatory tax treatment of spousal health care benefits.”

“The companies paint the law as an overburdening government regulation that should be repealed,” writes Lucas Grindley at The Advocate.

The companies say DOMA “forces” them “to investigate the gender of the spouses of our lawfully married employees and then to single out those employees with a same-sex spouse.” For example, HIPPA laws usually consider marriage a “qualifying event” that automatically enrolls a spouse in an employee’s health insurance. Companies now spend time and money weeding out any gay employees who get married.

If companies don’t want to discriminate, because it hurts their recruiting efforts or they’re just opposed to it in principle, then DOMA causes a bunch of “workarounds” that come with wasteful administrative costs of their own.

Companies complain that when a same-sex couple legally marries, it requires them “to maintain two sets of books.” That’s because the couple is considered married under state law but not married under federal law. “The double entries ripple through human resources, payroll, and benefits administration,” they write.

Some of the companies have had to pay consultants to jury-rig systems used to track benefits and taxes so they can accommodate the double records. “These dual regimes have spawned an industry of costly compliance specialists,” they complain.

“The burden on the small employer is especially onerous,” the companies point out. Small businesses can’t afford to hire consultants, and “such burdens, standing alone, might chill a smaller employer from employing an otherwise qualified employee because she happens to be married to a same-sex spouse.”

ABT Associates
Aetna, Inc.
Akamai Technologies, Inc.
Alere Inc.
Bank of New York Mellon Corporation
Biogen Idec, Inc.
Blue Cross Blue Shield of Mass., Inc.
Boston Community Capital, Inc.
Boston Medical Center Corp.
Bright Horizons Children’s Centers LLC
Calvert Investments, Inc.
CBS Corporation
The Chubb Corporation
Communispace Corp.
Constellation Energy Group, Inc.
Diageo North America, Inc.
Eastern Bank Corp.
Exelon Corp.
FitCorp Healthcare Centers, Inc.
Gammelgården, LLC
Google Inc.
Integrated Archive Systems, Inc.
Kimpton Hotel & Restaurant Group, LLC
Levi Strauss & Co.
Loring, Wolcott & Coolidge Trust, LLC
Massachusetts Mutual Life Insurance Co.
Massachusetts Envelope Company, Inc.
Massachusetts Financial Services Company
Microsoft Corp.
National Grid USA, Inc.
Nationwide Mutual Insurance Co.
New Balance Athletic Shoe, Inc.
New England Cryogenic Center, Inc.
NIKE, Inc.
The Ogilvy Group, Inc.
Onyx Pharmaceuticals, Inc.
Partners HealthCare System, Inc.
Reproductive Science Center of New England
Skyworks Solutions, Inc.
Starbucks Corp.
State Street Bank and Trust Co.
Stonyfield Farm, Inc.
Sun Life Financial (U.S.) Services Co., Inc.
Time Warner Cable, Inc.
Trillium Asset Management Corp.
W/S Development Associates LLC
Xerox Corp.
Zipcar, Inc.

Law and professional firms:

Burns & Levinson LLP
Edwards Wildman Palmer LLP
Foley Hoag LLP
Goodwin Proctor LLP
Goulston & Storrs, P.C.
McCarter & English LLP
Nixon Peabody LLP
Parthenon Group LLC
Ropes & Gray LLP
Salera Consulting
Seyfarth Shaw LLP
Sullivan & Worcester LLP

Professional, trade and civic organizations:

Greater Boston Chamber of Commerce
The Boston Foundation
Massachusetts Association of Health Plans
Massachusetts Biotechnology Council, Inc.
The National Fire Protection Association
Out & Equal Workplace Advocates
Retailers Association of Massachusetts

And the following cities:

The City of Boston, MA
The City of Cambridge, MA
The City of New York, NY

 

(Image by re-ality)

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