Same-sex ruling has employers tweaking benefits

WASHINGTON — The Supreme Court's landmark ruling on same-sex marriage has private employers around the country scrambling to make sure their employee benefit plans comply with the law.

The impact of the decision striking down part of the federal Defense of Marriage Act is clear in the 13 states and the District of Columbia where gay marriage is currently legal or soon will be: Same-sex married couples must be treated the same as other spouses under federal laws governing tax, health care, pensions and other federal benefits.

But employee benefit experts say the effect of the ruling remains murky in the other 37 states. The court left intact another provision of the federal anti-gay marriage law that allows one state not to recognize a same-sex marriage performed elsewhere.

"What's the federal government going to do when you have a valid marriage in New York and the couple moves to Texas? We don't know the answer to that," said Scott Macey, president of the ERISA Industry Committee that represents large employers.

The confusion is creating uncertainty for many companies that operate nationwide and want to administer benefit plans in a uniform manner.

"My members are all across the country," Macey said. "Most, if not all of them, would prefer to have a consistent rule across the country. They don't want to worry about changing things from state to state."

For workers living in states that have legalized same-sex marriage, the Supreme Court's decision means gay spouses are entitled to a host of benefits they were denied previously. The decision extends pension and Social Security survivor benefits to same-sex spouses, grants equal access to the Family and Medical Leave Act and gives employees married to same-sex spouses the guarantee of uninterrupted health care coverage under the federal COBRA health benefits program.

Same-sex couples can also get the same tax break on health coverage that other couples have been receiving. Before the court's ruling, same-sex spouses covered by employer health plans had to pay taxes on the benefits they received, which on average added up to an extra $1,000 year. And employees now will be able to seek reimbursement from flexible health spending accounts for the medical expenses of gay spouses.

"This affects a thousand laws and regulations that touch employee benefits," said Bruce Elliott, manager of compensation and benefits at the Society for Human Resource Management, an industry association.

But many questions were left unanswered by the court. What happens if an employee lives in Maryland, which allows same-sex marriages, but works in neighboring Virginia, which doesn't? What happens to an employee who has a valid gay marriage in Iowa, but then moves to Alabama, which doesn't recognize same-sex marriages?

"It answers one question and raised many more," said Susan Hoffman, a Philadelphia attorney who focuses on employee benefits. "There may be pressures on the employer, but there is no legal mandate."

About 62 percent of Fortune 500 companies already offer same-sex domestic partner health benefits, according to the gay advocacy group Human Rights Campaign. More of those companies, and perhaps smaller firms, could decide to extend those benefits in light of the court's decision.

Several companies that already offer domestic partner benefits told The Associated Press that they did not plan any immediate changes. That includes Ford Motor Co., which has offered same-sex benefits to hourly and salaried employees since 2000, spokesman Jay Cooney said.

At glass manufacturer Corning Inc. in New York, spokesman Daniel Collins said the company has been in the process of revising its policies as different states legalize gay marriage. For now, though, it plans to keep its domestic partner benefits until it has more guidance.

"It's so new and actions are occurring so quickly," Collins said.

Verizon spokesman Ray McConville said the company was still evaluating the decision.

Hoffman said the legal ambiguities will have to be resolved in future court decisions as gay couples seek to protect their benefits in states that don't recognize same-sex marriages performed in other states.

Macey said the federal government could go a long way in clarifying things when it issues regulations establishing how the court ruling should be implemented. The court seemed to leave it up to the Internal Revenue Service and other various federal agencies to decide how to resolve conflicts between states over gay marriage.

President Barack Obama said he's directed the attorney general and members of his Cabinet "to review all relevant federal statutes to ensure this decision, including its implications for federal benefits and obligations, is implemented swiftly and smoothly."

It's possible the Obama administration could say that federal benefits should be granted equally to all spouses in same-sex marriages, even if they live in a state that won't recognize the union, Macey said. But such a ruling would not prevent the continued denial of state benefits to gay couples in states where same-sex marriages are not legal.

Macey said most companies will probably wait to see how the federal government is going to interpret the decision.

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Follow Sam Hananel on Twitter: http://twitter.com/SamHananelAP

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Stocks end with strong gains after jobs report

NEW YORK — The U.S. stock market is closing higher after a bumpy start, with investors encouraged by a big uptick in hiring.

The government says that the U.S. economy added a stronger-than-expected 195,000 jobs last month. That helped investors shake off worries about the Federal Reserve scaling back its economic stimulus, which spooked markets early.

The Dow Jones industrial average finished up 147 points, or nearly one percent, to 15,135. The Standard & Poor's 500 rose 16 points, or one percent, to 1,631. The Nasdaq composite was up 35 points, or one percent, to 3,479.

After jumping early, stock gains tapered off. All the major indexes dipped briefly into the red, but by late afternoon, they were marching steadily higher.

The yield on the 10-year Treasury note jumped to 2.73 percent.

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Illnesses prompt wide Whole Foods cheese recall

NEW YORK — Whole Foods Market Inc. is recalling Crave Brothers Les Freres cheese in response to an outbreak of a bacterial infection that has sickened people in several states and killed at least one person.

Whole Foods says the cheese may be contaminated with Listeria monocytogenes. It was sold in 30 states and Washington DC under names including Les Freres and Crave Brothers Les Freres. The cheese was cut and packaged in clear plastic wrap and sold with Whole Foods Market scale labels. The company is posting signs in its stores to inform customers about the recall.

Officials said cases have been identified in at least three states. Public health officials in Illinois said Wednesday that one resident became sick after eating contaminated cheese in May. Minnesota officials said Thursday that one elderly person in the state died and another was hospitalized after illnesses linked to the cheese. Both of those illnesses happened in June.

Listeria can lead to severe illness for women who are pregnant or people who have weakened immune systems. In healthy individuals, it can cause symptoms including high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea.

Crave Brothers is based in Waterloo, Wis. The company announced a voluntary recall of Les Freres, Petit Frere, and Petit Frere with Truffles cheese made on July 1 or earlier. It said the cheeses were distributed around the country through retail and food service outlets and mail order.

Whole Foods said customers should throw the cheese away and bring in their receipts for a full refund.

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Bar raised at Graybar site with 560 apartments on tap

Developers have filed formal plans to construct apartments and retail space in a section of the South End that has become a hot spot for redevelopment.

The applicants, listed officially as F8345 Harrison Owner LLC, would build two multi-family apartment buildings featuring shops on the ground floors at the site of Graybar Electric on Harrison Avenue, according to documents filed with the Boston Redevelopment Authority.

The project would include approximately 560 rental units in 515,000 square feet as well as 30,000 square feet of retail space.

The development team said it has already met with community representatives and with the BRA, according to the filings.

Burlington-based Nord-blom Co., bought the Graybar building, which is between Harrison Avenue and Washington Street, for a whopping $14 million in June 2012. The company also bought the former Teradyne headquarters — an 11-story office building and parking garage at 1000 Washington St. — which is just next door to Graybar.

Graybar has operated out of the South End building since 1960.

That area is quickly changing. Across the street from Graybar is the Ink Block — the former Boston Herald building — which is being transformed into 471 apartments, a Whole Foods market and restaurants and shops.

The former Teradyne parking lot is being turned into a two-building apartment complex that will stretch 19 stories.

And developers also want to redevelop an auto repair shop and parking lot into an 11-story office building just down the street on East Berkeley Street between Washington Street and Shawmut Avenue.

Representatives from Nordblom did not return calls and emails seeking comment yesterday.

A spokeswoman for the Boston Redevelopment Authority told the Herald it's too early in the process to comment.

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Hyundai does luxury right

The 2013 Azera, which is slotted between Hyundai's Sonata and Genesis, is one of six sedans in the Korean automaker's 10-model lineup. I'm amazed that Hyundai offers that many models, but I shouldn't be surprised, Hyundais are everywhere you look these days. But with all those models, it's difficult to distinguish the Azera from the others.

The Azera's $33,000 base price puts the sedan in direct competition with the Ford Taurus, Nissan Maxima and Buick LaCrosse. Our test model included a technology package that hiked the price up to $37,000, which certainly doesn't make the Azera a bargain, but it remains competitive when you consider that the sedan is loaded with luxury features.

Dual-zone climate controls, heated seats throughout, and touch screen navigation with a back-up camera are all part of the Azera's standard equipment package. Power seat adjustments mounted near the door handles made it easy to see the controls and tweak the driver's seat positions. Interior space was ample with plenty of head and foot room in the backseat.

The Azera's $4,000 technology package included ventilated front seats that cooled the Azera's leather interior after it baked in the June sun. Rear and side window sunshades also helped keep the sedan cool. The shades also gave the Azera's two-tone camel and black interior an upscale feel. A panoramic tilt and slide sunroof opened up the roof for both front and backseat passengers. Xenon headlights and a powerful Infinity stereo rounded out the package. While these features were appreciated, if I were buying an Azera, I think I'd hold on to the extra $4,000.

Our test Azera was painted in a bronze metallic with plenty of chrome trim and was set on 19-inch wheels. A push-button-ignition turned over the sedan's 3.3 liter V6 engine that produced 293 horsepower. The engine and 6-speed transmission combined to return 23 mpg overall. The Azera's acceleration was smooth with a comfortable ride quality and had minimal road noise. While the Azera's front-wheel drive is welcome for winter driving in New England, it did hinder the sedan's handling.

If you're considering a Sonata, the Azera might be worth a look. The extra $10,000 gets you more room and a cabin loaded with luxury touches. Better performance and handling can be found with the rear-wheel-drive Genesis that offers a choice of a V6 or a V8 engine mated to an 8-speed automatic. The Genesis has a base price of $35,000.

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U.S. jobs up, but many gigs are not 40 hours

Employers kept hiring in June, adding a better-than-expected 195,000 jobs, but many of them were part-time or temporary positions, hinting at a hollow economic recovery.

The number of part-timers who said they would prefer full-time work soared 322,000 to 8.2 million — the most in eight months, according to the Labor Department's monthly jobs report. These people were working part time because their hours had been cut or because they were unable to find a full-time job, the Bureau of Labor Statistics said.

The growing number of part-time workers may be related to the across-the-board federal budget cuts and the associated cutbacks and furloughs of federal employees, said Michael D. Goodman, associate professor and chairman of the Department of Public Policy at UMass Dartmouth.

And some employers may be reluctant to hire full-time workers because they would have to offer them health insurance under the Affordable Care Act, which starts to go into effect next year.

"Obamacare pretty much does discourage full-time work by withholding subsidies from a large majority of full-time workers and by penalizing employers who don't offer health insurance," said Casey B. Mulligan, a professor of economics at the University of Chicago.

But while there are incentives built into the Affordable Care Act that will lead some companies to hire part-timers over full-timers, that is not as important as sufficient demand for goods and services, said Robert A. Nakosteen, professor of economics and statistics at the UMass Amherst Isenberg School of Management.

"We still have a 'demand-deficient' economy — not enough spending in the aggregate, "Nakosteen wrote in an email, "and until this problem comes to an end, companies will not hire in sufficient quantities, and/or will hire part-timers, to bring our labor market to full employment."

Because more people started looking for work, the unemployment rate remained at 7.6 percent last month, according to the Labor Department.

"But the broadest official measure of unemployment, the so-called 'U-6', rose from 13.8 percent to 14.3 percent in June," Goodman said. "This measure includes the unemployed and workers who want to work but have given up looking and those working part-time for economic reasons. Thus, while the recovery continues, it is continuing to leave troublingly high numbers of American workers behind."

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Set loft-y goals in sunny JP unit

Carved out of a former carriage factory in Jamaica Plain, this authentic-looking loft has brick walls throughout and gets lots of light from a wall of front-facing windows.

Unit 9 at 172 Green St. is one of 14 units in a former brick carriage factory built by Hub entrepreneur Patrick Meehan in 1880 in the Brookside industrial area of Jamaica Plain, near the Green Street Orange Line T station.

The building was converted into condos in 1999-2000 in a way that preserved much of the original brick-and beam look, but with new windows and systems.

The 1,677-square-foot loft, which has a walled-off bedroom and a granite and cherrywood kitchen added in 2006, is on the market for $699,000.

The unit is dominated by one long room with areas for a living room, dining space and a home office. The 10-foot ceilings and columns feature original wood beams and the refinished floors are dark-stained maple.

This open area gets lots of light from 10 front-facing windows and three side windows, all with brick arches overhead.

The living room has a center gas fireplace fed by a metal duct, part of a network of ductwork across the ceiling.

A set of wood beams sets off a dining area with contemporary lighting overhead.

And there's another area in the large room currently used as a home office.

Off the dining area is the unit's large full bathroom with granite floors, a Corian-topped vanity and a one-piece Fiberglas shower.

Adjacent is a laundry/utility room with a stacked Kenmore washer and dryer. There's also a good amount of pantry and storage space in this room that also holds the unit's forced-hot-air-by-gas heating and an electric central air-conditioning system added in 2004.

Perpendicular to the home office area is the kitchen, redone in 2006. The kitchen has cherrywood cabinets, some with glass fronts, and absolute black granite counters, including an area with a breakfast bar. There's overhead and pendant lighting and refinished maple floors.

The owners also added stainless-steel appliances, including a high-end DCS gas stove, an LG refrigerator and a Bosch dishwasher.

Off the kitchen, the current owners built a wall with custom woodwork in 2006 to create a private 16-by-13-foot bedroom whose entrance features two glass doors with transom windows and track lights above. The bedroom has brick walls and two front-facing windows. There's also a double-door closet.

An added amenity is that the unit comes with a good-sized private storage room in the building's basement.

There's a common outdoor patio in the back of the building, where there's also parking. The unit comes with one deeded parking space.

Broker: Denise Smigielski of McCormack & Scanlan Real Estate at 617-905-2098

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Egyptian unrest trips hike in crude oil prices

Crude oil prices surged yesterday on a better-than-expected U.S. jobs report and concern about escalating unrest and violence in Egypt.

U.S. crude oil futures hit a 14-month high, climbing more than $1.98 per barrel to close at $103.22, after hitting a peak of $103.32. Brent crude for August delivery, meanwhile, touched a three-month high of $107.88 and settled at $107.72, up $2.18.

Oil has been on a fairly strong, bullish trend over the past two weeks, according to Addison Armstrong, senior director of market research at energy investment advisors Tradition Energy in Stamford, Conn.

"(The) unemployment report was just another in a recent series of good macro-economic data about the U.S. economy, which also helps support the view that demand for oil will increase," Armstrong told the Herald.

The job growth suggests a stronger economy makes it more likely the Federal Reserve will slow its bond purchases, which have kept interest rates low, boosting investments such as stocks and oil.

In Egypt, meanwhile, protests over the ouster of Egyptian president Mohammed Morsi turned violent.

Those headlines also helped to support the bullish momentum, Armstrong said.

Egypt is not an oil-producer, but its control of the Suez Canal, one of the world's busiest shipping lanes, gives it a crucial role in maintaining global energy supplies.

But, Armstrong added, "I don't think professional traders have any expectation of serious disruption of oil from the Middle East because of the potential closure of the Suez Canal."

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Mills joins 22 other states in letter to Google

AUGUSTA, Maine — Maine's attorney general is urging Google to put in place more and better transparency and privacy controls.

Janet Mills joined 22 other state's attorneys general in a letter to Google CEO Larry Page this week that says they will be monitoring Google's activities related to consumer privacy.

In the letter, the attorneys general express concern that "consumers have no one place they can go view and manage the vast amounts of information that Google collects and analyzes about them across different products."

Mills says in a statement that she is encouraged by some improvements Google has made in areas like notifying consumers about their privacy controls and how to access them. Those changes were made after 36 state attorneys general sent a letter to Page last year.

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Insurance dispute won’t stop soccer match at Gillette

Tonight's New England Revolution home soccer match will proceed, despite ongoing differences between Gillette Stadium owner the Kraft Group and the town of Foxboro over event liability insurance.

Foxboro town counsel Dick Gelerman said the town would allow the game to be played for public safety issues, but it continues to dispute whether the Kraft Group is in compliance with new event license conditions.

"I've notified them that we do not think they are," Gelerman said. "They disagree, but we're not going to stop the event. We think doing so would be harmful to public safety. People won't get the notice. It's not safe to try and turn away a crowd."

At issue is an increase in the town's deductible for liability insurance from claims stemming from games and other events at Gillette Stadium, which jumped from $7,500 per claim to $50,000 per claim as of June 30. In March, the town imposed a new event license condition for Gillette events that requires the Kraft Group to insure the town "in the form satisfactory to us," according to Gelerman.

With no agreement reached Wednesday, the town had asked the Kraft Group to meet one of two conditions by 5 p.m. yesterday for the event license to be issued: Cover the $42,500 per-claim difference or increase its own liability insurance with the hope that the town's insurer would lower its deductible back to $7,500.

Neither condition was met, but the town decided to let the game proceed regardless.

"We put (the Kraft Group) on notice that if there is a problem at the game, the liability is theirs," Gelerman said, noting the town hopes to continue to work with the Kraft Group to resolve the issue. "We're going to try to solve this before the next event."

Spokesman Stacey James said the Kraft Group believes it's satisfied all possible license conditions and has the appropriate insurance to host the game.

The issue that remains unresolved is a "town insurance matter" which the Kraft Group has worked diligently to help the town resolve, providing multiple alternatives for its consideration, James said.

"Unfortunately, there are some who are demanding us to do more than we are allowed to do under the laws of the Commonwealth," James said. "Rather than working together constructively to find ways to insure the town, some choose to be obstructionists by creating unnecessary obstacles in the process. We will continue to work with responsible town leaders to properly address public safety, insurance and licensing issues."

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