Frequently Asked Questions: Equal Benefits

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What is the Equal Benefits Ordinance?
What types of contracts/agreements are covered by the Ordinance?
When does the Ordinance become applicable?
Who is covered by the Ordinance?
Are subcontractors covered by the Ordinance?
What is a covered contractor required to do under the Ordinance?
What benefits are included?
How does the Ordinance define a "domestic partner"?
What criteria defines a domestic partnership?
Won't domestic partner benefits increase a contractor's health insurance costs?
Where can a domestic partnership be registered?
Are there insurance companies in Washington State that will cover domestic partners?
What happens if a contractor is found to be in violation of the Ordinance?
How can a contractor comply with the Ordinance?
What if a contractor is subject to a collective bargaining agreement?
What happens to contracts in existence before the Ordinance was passed?
Are there any exceptions or waivers to the Ordinance?
Who is responsible for administering the Ordinance?

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What is the Equal Benefits Ordinance?

In summary, the Equal Benefits Ordinance (EBO) requires that City contractors who contract with the City for contracts of $50,000 or more, and who provide benefits to their employees with spouses, must also provide the same benefits to their employees with a domestic partner.

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What types of contracts/agreements are covered by the Ordinance?

The Ordinance covers any City contract/agreement for $50,000 or more. This includes contracts/agreements for public works, consulting, or supplies, materials, equipment, or services.

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When does the Ordinance become applicable?

The Ordinance applies to all contracts/agreements executed on or after January 1, 2005.

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Who is covered by the Ordinance?

For all contracts of $50,000 or more the Ordinance applies to:

• A contractor's operations that occur within the City.
• A contractor's operations that occur on property owned by the City or on property that the City has a right to occupy.
• A contractor's operations that occur elsewhere in the United States if the work being performed is work related to a City contract.

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Are subcontractors covered by the Ordinance?

The Ordinance does not apply to subcontractors.

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What is a covered contractor required to do under the Ordinance?

The Ordinance requires the contractor to:

• Certify that equal benefits will be provided to employees with spouses and to employees with domestic partners.
• Allow the City access to records so that the City can verify compliance with the Ordinance.
• Sign the contract.

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What benefits are included?

The Ordinance applies to health benefits only, including medical, dental and vision.

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How does the Ordinance define a "domestic partner"?

A domestic partner is any person whose domestic partnership has been registered with a governmental entity pursuant to state or local law, or pursuant to an internal register maintained by the City contractor.

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What criteria defines a domestic partnership?

Domestic partners can be same or opposite sex partners who are:

• Two people who have a relationship of mutual support, caring and commitment and who
• Share the same regular and permanent residence.
• Partners are neither married nor related by blood in a manner that would bar their marriage in Washington State.
• Partners are each other's sole domestic partner and at least 18 years of age.

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Won't domestic partner benefits increase a contractor's health insurance costs?

Various studies have discovered that costs increased by no more than 1% for employers who offer domestic partner benefits.

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Where can a domestic partnership be registered?

A domestic partnership can be registered with their employer, or at any governmental agency that maintains such registry. Some local registries are:

• City of Olympia
• City of Tumwater
• City of Seattle
• King County

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Are there insurance companies in Washington State that will cover domestic partners?

Yes. According to the Washington State Insurance Commissioner, domestic partner coverage is available to large employers (over 50 employees) at the consumer's request. The Commissioner's office knows of no insurance carrier operation in Washington State who, as a rule, would not provide such coverage if a customer requested it.

Several insurance carriers are currently reviewing their policy of limiting domestic partner coverage to large groups only. Some carriers have changed their policies and will now underwrite domestic partner coverage for small groups. This is a rapidly-changing area; you should contact your insurance carrier to determine their policies regarding domestic partner coverage.

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What happens if a contractor is found to be in violation of the Ordinance?

The contractor may be deemed to be in material breach of the bid or subsequent City agreement. When that happens, the City may take the following steps:

• Reject a bid
• Determine and impose sanctions including, but not limited to, disqualification of contractor from bidding or being awarded a City contract for up to five years
• Examine contractor's benefit programs covered by the Ordinance
• Terminate a contract
• Impose liquidated damages

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How can a contractor comply with the Ordinance?

Provided that a contractor does not discriminate in providing benefits between employees with spouses and employees with domestic partners, a contractor may:

• Elect to provide benefits to individuals in addition to employees' spouses or domestic partners,
• Allow each employee to designate a member of his/her household eligible for spousal equivalent benefits,
• Provide no benefits, or
• Offer a cash equivalent.

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What if a contractor is subject to a collective bargaining agreement?

If the union does not have domestic partner benefits, the contractor must determine what % of the employee's income is covered in union benefits related to the Ordinance and either obtain insurance for the domestic partner, or provide a cash equivalent to allow the domestic partner to purchase his/her own benefits.

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What happens to contracts in existence before the Ordinance was passed?

Any contract or purchase order in place prior to the Ordinance's effective date must be renegotiated to contain the Ordinance requirements when it comes up for an amendment, extension or renewal.

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Are there any exceptions or waivers to the Ordinance?

An awarding authority may grant a waiver if:

• The award or amendment is necessary to respond to an emergency.
• The contractor is a sole source.
• The contractor is a public entity.
• No compliant contractors can meet the City's requirements.
• The requirements are inconsistent with a grant, subvention of agreement with a public agency.
• The City is purchasing through a cooperative or joint purchasing agreement.

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Who is responsible for administering the Ordinance?

For questions regarding the contract itself, contact the City Department who awarded the contract.

For questions about the Ordinance, contact the City Clerk's Office at 360.753.8325.

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