McCarter & English Provides Employees Tax Offsets for Domestic Partner Health Benefits

NEWARK, N.J.--()--McCarter & English LLP is pleased to announce that the Firm’s Executive Committee has adopted a compensation gross-up policy that offsets the tax disadvantage previously faced by the Firm’s Lesbian, Gay, Bi-Sexual and Transgender employees who cover domestic or civil union partners under their health insurance plans. The vote was unanimous.

Presently, the Internal Revenue Code treats the value of employer-provided healthcare benefits for a civil union or domestic partner as “imputed income” to the employee. This means that employees who elect domestic partner benefits must pay income tax on the value of those benefits, which is in direct contrast to employees with different-sex spouses.

In an effort to ensure equality in the workplace, some companies are adopting gross-up policies so that employees who claim health care benefits for same sex/civil union partners receive a bump in income such that, post-tax, the employees are in the same position as similarly situated employees electing healthcare benefits for their opposite-sex spouses.

As of June 2011, the Human Rights Campaign, one of the largest civil rights organizations working to achieve LGBT equality in the workplace, is aware of seventeen for-profit employers that have instituted a gross-up policy. Several large businesses and law firms have indicated they intend to implement the benefit in 2011.

“We make every effort to ‘walk the walk’ in the area of diversity,” said Stephen M. Vajtay, Jr., managing partner of McCarter. McCarter’s Partner-in-Charge of Firmwide Diversity, Stephanie J. Cohen added: “I am extremely proud that McCarter is among the first few law firms in the U.S. to actually adopt this policy. It is a powerful example of the Firm’s commitment to creating an inclusive work environment that ensures all of its employees are treated fairly.”

About McCarter & English

McCarter & English, LLP, established more than 160 years ago, represents Fortune 500 and middle-market companies in their national, regional and local litigation and on important transactions. Its 400 attorneys are based in offices in Boston, Hartford, New York, Newark, Philadelphia, Stamford and Wilmington. www.mccarter.com

Contacts

Rubenstein Associates
Daria Hall, 212-843-8292
dhall@rubenstein.com

Release Summary

McCarter & English LLP is pleased to announce that the Executive Committee has adopted a compensation gross-up policy that offsets the tax disadvantage previously faced by the Firm's LGBT employees.

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Contacts

Rubenstein Associates
Daria Hall, 212-843-8292
dhall@rubenstein.com