Illinois Civil Union Act Becomes Effective June 1, 2011

On December 1, 2010, Illinois Governor Quinn signed into law the Illinois Religious Freedom Protection and Civil Union Act.  The primary purpose of this Act is to provide the certification and registration of civil unions under Illinois law for both same-sex  and opposite-sex couples.  The Act outlines the obligations, responsibilities, protections and benefits currently afforded or recognized by law for spouses on the same basis (for State law purposes) for partners in civil union.

Same-sex couples as well as opposite sex couples who choose civil unions will gain legal rights to the following:

• The ability to make medical decisions with respect to their partner
•  Hospital visitation when those visits are limited to family
• Share rooms at nursing homes or assisted living facilities
• Eligibility for group health plan coverage (*see note below)
• Eligibility to receive inheritance under State law in the same manner as a spouse
• The ability to file suit over a partner's wrongful death
• The ability to decline to testify against a partner in legal actions

*Note: Some interesting and complicated decisions, which may have employee relations implications, will have to be made since "fully insured" group health insurance plans are covered by this Act (such plans are governed by state laws), but self-funded group health plans are not (such plans are governed by Federal laws).  Further, provisions within group health plans which cover employees in multiple states may need to be reconsidered.  Other policies and practices may also bear review - for example, sick pay utilization, bereavement eligibility, and "spousal consent" regarding pension plan or 401(k) distributions.

Healthcare Reform is Good for Everyone?

As of December 3, 2010, 222 Waivers of the Annual Limits Requirements of "Healthcare Reform" , covering 1,507,418 workers, have been granted by the Government.  The list of organizations granted such waivers can be seen at http://is.gd/iiw3u

The Waiver List includes McDonald's, Darden Resturants, and Universal Orlando (interestingly, each employing significant numbers of low wage and part-time workers who supposedly the Government was attempting to help).  Additionally, many Unions have been granted these Waivers.

In a bit of particular irony, New England Healthcare Institute (not an insurance company but a nonprofit independent healthcare policy institute) whose mission statement indicates is "dedicated to transforming health care for the benefit of patients and their families", has also been granted a Waiver.

An IRS Reprieve

Employers will not be required to report the cost of an employer-sponsored group health insurance plan on 2011 W-2 Forms as had previously been required by the Patient Protection and Affordable Care Act.  The IRS announced that it is providing additional time to make necessary changes to payroll systems and procedures to prepare for such compliance.

In spite of this reprieve, and at essentially the same time, the IRS released the draft copy of the 2011 Form W-2, which still includes the codes that employers would use to report the cost of coverage under an employer-sponsored group health plan.  The draft Form W-2 instructions do not indicate that this reporting is not required for 2011, so some confusion will undoubtedly abound.

Use of Automobile for Business

The 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile, van, pickup or panel truck for business has been issued by the IRS.

The standard mileage rates effective January 1, 2011, will be:

• 51 cents per mile for business purposes
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations