Dave,

Thanks for raising this.

Of the jurisdictions we've talked to about their experience with the EBO (San Francisco, Seattle and Minneapolis) there was but one case they recalled where an employer chose to drop spousal health insurance. This employer maintained insurance for their employees. This scenario, though drastic and statistically unlikely, would indeed make a company compliant.

I believe employers tend to provide spousal benefits beyond the fact that it is the right thing to do, but also because it is a market-driven benefit that attracts and retains valuable employees.

As I spoke a little about above, there are many ways a contractor would be in compliance:

a) Offer DP and spousal benefits
b) Inform employees that DP benefits are available upon request
c) Offer benefits to neither spouses nor DPs
d) Offer no benefits to employees
c) Request a waiver on the below conditions
c) If you cannot renegotiate coverage due to enrollment periods or union bargaining, you can ask your insurer or union in writing to offer DP coverage
d) If DP coverage is not offered by any carrier

The last condition is fairly common for small businesses with few employees, as insurers right now don't offer it. See the last question in the post for more.

I hope that helps answer your questions. While our office wants to make this as easy as possible, we are also of the belief that as a participant in the marketplace, the City ought to elect to do business with a constant eye towards equality.