A recent California Supreme Court decision to recognize same-sex marriages and recent federal legislation banning discrimination based on genetic testing warrants a “checkup” for employee benefit plans, including group health, life, and other welfare benefits.

California Supreme Court Lifts Ban on Same-Sex Marriage

On May 15, 2008, the Supreme Court of California, in In re Marriage Cases, found that the failure to designate the relationship of a same-sex couple as “marriage” violated the California Constitution. In doing so, the Court makes clear that under California’s constitution, same-sex couples can be married. Voters in California will most likely be given the opportunity to weigh in on this issue. A proposed amendment to California’s constitution prohibiting same-sex marriage will be placed on the November ballot if a sufficient number of signatures are timely collected. The ruling is scheduled to go into effect in mid-June, unless the Court agrees to an appeal asking to delay the decision until after the November vote.

Notably, the day before the California Supreme Court rendered its decision, the Governor of the State of New York issued a directive to all state agencies to revise their policies and procedures to ensure that the term “spouse” included same-sex spouses. Opponents of same-sex marriage claim that the Governor overstepped this authority. This Alert identifies some of the employee benefits issues facing employers with employees in California in light of the Supreme Court decision, and outlines how these issues may be addressed.