The Impact of Same Sex Marriage Laws on New Jersey Businesses

Bill A-1398 in the New Jersey Legislature, sponsored by Michael Doherty of District 23 and Richard Merkt of Disctrict 25, and co-sponsored by Assemblywoman McHose and Assemblymen O'Toole, Russo, DeCroce, Gregg, Rooney, Thompson, and Pennacchio, was pre-filed for introduction in the 2006 session. The bill is now pending technical review by legislative counsel. If enacted, the bill will ensure that New Jersey will not recognize marriages in other jurisdictions that are void in New Jersey. The bill lists that same sex marriages are included in this group of marriages in New Jersey that are invalid. If enacted, the bill will have serious repercussions for businesses both in New Jersey and across the nation.

A-1398 proposes to amend R.S.37:1-1, which deals with marriage laws. The current law invalidates marriage of man or woman to "any of his ancestors or descendants...whether such collateral kindred be of the whole or half blood." The bill proposes to add "Persons of the same sex shall not marry." to the end of the law. The bill also proposes to add a new section to the existing law stating that a "marriage solemnized in any other county, state or territory, if valid where solemnized, is valid here unless it is a marriage that would be prohibited and declared void in" New Jersey. The bill also would propose to add a new section to the law declaring that same sex marriages are against the public policy of New Jersey. The act would take effect immediately if passed (Doherty OL).

This bill, if passed, would negatively impact businesses in New Jersey and across the country. The vast majority of business leaders are more concerned with the bottom line of their company than establishing radical social change, and for this exact reason, voiding same sex marriage in New Jersey will not receive the support of business owners. According to the Urban Institute, a nonpartisan economic and social policy research organization, businesses "respond to basic pocketbook needs and real marketplace challenges, such as competition and the need to attract and retain top workers. Creating welcoming and inclusive work environments, where gay couples are treated exactly like married heterosexual couples, makes good business sense" (Witeck OL). Additionally, the bill would create problems in how businesses function on a day-to-day basis.

How are businesses supposed to respond to the messy patchwork of legal rights and marriage laws across state borders? Many companies have entities in multiple states, and this creates problems for workers and their families, which has a direct impact on the businesses. What, for instance, is a gay worker to do if he is transferred to a division of his company in a state which will not recognize his marriage or legally protect his family? The bill would create many employment limbos and seriously hinder companies' abilities to hire the best and brightest in the industry with ease. Companies are trying to hire the best employees and distribute them as needed, without having to worry about concerns over sexuality and ideological battles. Additionally, ":the absence of marriage recognition for same-sex couples will create financial and logistical liabilities for business leaders, adversely affect employee morale, complicate employment and benefit polices hugely, and makes it harder for companies to relocate staff and their families." When laws such as A-1398 come into play, they create problems from the ground up, and these problems cost businesses money.

Some business leaders support passage of A-1398 on the grounds that recognizing same sex marriages will cost businesses far too much money in terms of health care and retirement benefits. This is, as research has shown, an absurd idea. According to a report by M.V. Lee Badgett, Ph.D and Gary Gates, Ph.D for the Human Rights Campaign Foundation, the impact on businesses would be minimal. The report points out that "over 96 percent of firms will have no additional costs for health care benefits as a result of extending marriage to same-sex couples." The four percent of businesses that are affected, still yet, will see almost negligible increases in benefit costs.

Very small businesses, with under 20 employees, will see an average increase of $40 per year, although 99% of businesses in this category will see no change at all. Small businesses, with between 20 and 100 employees, will see an average increase of $327 per year, while medium businesses with between 100 and 500 employees will see an average increase of $1,424 per year. Businesses larger than this will see an average increase of just under $25,000 per year (Badgett OL). These numbers are all relative, however, to the number of employees the companies employ. What is similar about each of the statistics, however, is that they are all equally meaningless cost increases for the respective businesses. $25,000 per year for a company that earns millions is a small, small price to pay for what the businesses would gain in employee happiness and company flexibility. Additionally, the vast majority of retirement plans (defined contribution plans) are not based on family status, so in most cases, there will be no cost increases for businesses on that front.

In order to protect the interests of businesses, a campaign to block passage of A-1398 must be organized. A political action committee, the New Jersey Association for Equal Opportunity Businesses, NJAEOB, will be established in order to lead the battle. Mobilization will begin with the core of the issue, the employees. Efforts to mobilize employees will be made through educational campaigns, where they will be informed about the issue via web sites and newsletters. NJAEOB would establish an office in Washington and would appoint government relations personnel who not only are familiar with the organization's cause, but who know the "rules of the game" well and can get things done in Washington. NJAEOB will gather money via events and private donations and will use this money to support the campaigns of candidates who support us and who are in relevant committees within the New Jersey State Legislature, particularly the Commerce and Economic Development committee and the Appropriations committee.

While our money cannot buy votes, it can certainly buy access, and our candidates will be more than willing to sit down and hear our cause provided we assist their campaigns to the best of our ability. This will give business a voice on the issue, and make us "a player in the political process" while increasing our "ability to gain access to decision makers" (Watkins 76). Our organization will stress the problems that A-1398 will create for businesses, and will back up our proposition of leaving the law as is with statistics that show the minimal cost increase for businesses. We would use phrases such as "Not recognizing same sex marriage restricts your business" when garnering support. Loaded words like "restrict" set off alarms in the heads up business owners, who are always seeking independence from government interference. Since business leaders will respond more positively to messages about how they will be hurt rather than how their gay employees will be helped, that will certainly be the core of our message.

It is clear that a law preventing same sex marriages from achieving recognition within New Jersey would prove hurtful to businesses within New Jersey and in other states. Additionally, it is also quite clear that businesses would not suffer in any meaningful way by accommodating same sex couples. By establishing a PAC, the New Jersey Association for Equal Opportunity Businesses, we will be able to lead the battle against A-1398 and bill like it, and provide a comfortable, complication-free workplace for employers and employees alike.

Works Cited
Badgett, M.v. Lee, and Gates Gary. The Business Cost Impact of Marriage for Same-Sex Couples. The Human Rights Campaign Foundation. Washington, DC: Human Rights Campaign Foundation, 2004.
Doherty, Michael J., and Richard A. Merkt. New Jersey. 212th Legislature. Assembly, No. 1398. 14 Apr. 2007 .
Watkins, Michael, Mickey Edwards, and Usha Thakrar. Winning the Influence Game. New York: John Wiley & Sons, Inc., 2001. 76.
Witeck, Bob. "Same-Sex Marriage: What's At Stake for Business?" The Urban Institute. 21 July 2004. 14 Apr. 2007.