Judy Kamens Compliance Specialist View Bio

 

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Supreme Court Ruling on DOMA

July 23, 2013

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On June 26, 2013, the U.S. Supreme Court announced its decision regarding the constitutionality of the federal Defense of Marriage Act of 1996 (DOMA). The Court struck down Section 3 of DOMA, which limited marriage to opposite sex unions for purposes of federal law.

In a 5-4 decision, the court found this definition to be a violation of equal protection rights under the U.S. Constitution, holding that same-sex couples who are legally married under state law will be entitled to equal treatment under federal law with regard to income taxes and federal benefits. However, the Court’s ruling does not establish a constitutional right to same-sex marriage.

This decision will impact employers in states that recognize same-sex marriage with respect to things like:

• Taxation of employee benefits;

• Leave under the Family and Medical Leave Act (FMLA); and

• Enrollment rights under HIPAA and COBRA.

 

BACKGROUND OF THE DEFENSE OF MARRIAGE ACT (DOMA)

Enacted in 1996, DOMA banned federal recognition of same-sex marriage by defining “marriage” as the legal union between one man and one woman as husband and wife. As a result of the Supreme Court’s ruling in U.S. v. Windsor, legally married same-sex couples are entitled to the same benefits and protections under federal law as opposite-sex married couples.

The Court’s ruling does not require states to permit same-sex marriage. Also, the Court did not address the part of DOMA that allows states to choose whether to recognize same-sex marriages performed in other states. This means that states can still refuse to recognize same-sex marriages that are legal in other states.

EFFECT OF SUPREME COURT DECISION ON EMPLOYEE BENEFITS

DOMA has not prohibited employers from providing health benefits to their employees’ domestic partners or same-sex spouses. However, the administration and taxation of these benefits can be complex. In states that recognize same-sex marriage, DOMA created two different systems for same-sex couples. Under state law, these couples were treated as married, but their marriages were not recognized under federal law.

The majority of states have laws or constitutional amendments barring same-sex marriages. However, a growing number of states have legalized same-sex marriage, while others recognize same-sex marriages performed in other states and nations. The states that have legalized same-sex marriage include: California (due to recent Supreme Court ruling) Connecticut Delaware District of Columbia
Iowa Maine Maryland Massachusetts Minnesota
New Hampshire New York Rhode Island Vermont Washington