Last Friday, the Supreme Court ruled that same-sex marriage is protected under the United States Constitution, guaranteeing that gay couples can be married in all 50 states. The decision made headlines throughout the country, but as the nation settles down, it is time to take a look what this ruling means (and doesn’t mean) for clubs.
On the whole, truly private clubs will continue with business as usual, but it is important for all clubs to review a few areas related to spouses of club employees and club members.
Workforce Benefits
The Supreme Court’s ruling may raise a few questions regarding workforce issues such as payroll, human resources and employee benefits systems.
Overall, if marital status affects the delivery of benefits to an employee’s same-sex spouse or that spouse’s child, clubs may need to amend the definition of “spouse” in their plans, modify tax reporting systems, update enrollment forms, change tax notices, and make additions to beneficiary designation forms and more.
For example, retirement plans must be reviewed to ensure the federal marriage recognition does not affect beneficiaries, as spouses are the default beneficiaries of pension plans. Employers should double check for language that excludes same-sex spouses and remove it.
As you may recall, a few months ago the Department of Labor changed the definition of the term “spouse” in the Family Medical Leave Act (FMLA) to include all same-sex couples, regardless of the state they were married in. In response, Arkansas, Louisiana, Nebraska and Texas filed a lawsuit in a lower court challenging this new definition and were granted an injunction to stop the rule change in their states. Friday’s Supreme Court ruling effectively eliminates the injunction and makes club employees in all states eligible for FMLA benefits.
Thus nationwide, clubs with 50 or more employees will need to offer employees who are in a same-sex marriage up to 12 weeks of paid leave to care for their partners. Clubs should also review other spousal workforce benefits to ensure compliance with the law.
Spouses of Members
Almost all clubs have policies regarding spouses. These policies may determine who can enter the club and what privileges they have. In response to the ruling, consider reviewing your club’s spousal policies to ensure they are up to date and consistent. Adjust language accordingly and treat both same-sex and traditional marriage equally.
As best practices, clubs should ensure that spouses:
- Are informed in writing of their rights under the membership.
- Understand their rights and that their rights under the membership may change depending upon the policies of the board and membership.
- Sign an agreement (preferably the same form the named member signs) acknowledging they understand their rights and the applicable limitations prior to membership approval.
Key Takeaways
Prior to the ruling, a married same-sex couple in one state may not have been entitled to federal privileges heterosexual couples enjoyed in another state. This ruling changes that. All married couples, regardless of sexual preference, are now entitled to the same benefits.
U.S. Census Bureau researcher, Daphne Lofquist, reports that there are approximately 170,000 married same-sex couples in America. That number will surely rise in time. For most clubs, the changes to be made, if any, are administrative in regard to the club workforce. But, this decision will likely trigger a review of club bylaws and membership guidelines to evaluate how a member and a spouse are defined.
Phillip Mike is NCA’s communications manager.