By now, most organizations recognize that embracing diversity, equity, and inclusion (DEI) in the workplace is the right thing to do. It helps employees feel welcomed, valued, respected and heard; provides fair access to resources, opportunities and advancement; and makes good business sense. Beyond the unmistakable perks of committing to DEI lies an interconnected discussion around company benefits, including floating holidays/leaves, paid time off and paid parental leaves, remote work, and flexible work schedules.

Breaking down the term DEI can help us better understand the importance these initiatives hold in the workplace — and how to navigate the compliance and coverage concerns that may arise.

Defining D, E, I

• Diversity refers to the presence of differences such as differing abilities, gender, gender identity, race/ethnicity, veteran status– just to name a few! It’s also essential to consider diverse thoughts, skills, and experiences. An organization can create and maintain a diverse workforce by recruiting, retaining, developing, and engaging employees from various backgrounds.
• Equity is both an approach and a process that ensures everyone has access to opportunities — that all people can grow, contribute, and develop. The process begins by acknowledging that advantages and barriers do exist, and consequently, everyone does not start from the same place. Equity then works to address any systemic imbalances. As opposed to equality, where everyone gets the same thing, equity means everyone gets what they need for fair access — thus leveling the playing field.
• Inclusion is a necessary ingredient that refers to the intentional, ongoing effort of making sure diverse individuals, all individuals, are valued, respected, and welcomed members in a community. In the workplace, inclusion efforts can help ensure that people with different identities can fully participate in the organization.

Committing to DEI strategies and initiatives can increase employee engagement, drive innovation, and encourage growth. Companies reap the benefits when they welcome a wider range of skills and talent and create an environment where employees can thrive. A range of employee benefits go hand-in-hand with DEI, including floating holidays/leaves, paid time off and paid parental leaves, remote work and flexible work schedules.

Some potential challenges to successful DEI strategy development and execution include lack of senior leadership buy-in, resistance in the organization, a lack of trust among employees and a perception that the DEI efforts are simply trying to “check a box.”

State law compliance challenges

Utilizing appropriate gender designations has proven to be challenging and varies by state. New York, for example, created a new legal gender designation. New Yorkers have the option to choose "X" as a gender marker on their driver license, learner permit or non-driver ID card. This change is being implemented in accordance with the state's Gender Recognition Act, which went into effect on June 24, 2022. This landmark legislation provides expanded protections for transgender and non-binary New Yorkers through this change at the DMV and by making it easier for people to change their names, sex designation and birth certificates to reflect their identity. Regardless of the laws in the state, it is important to treat all of your employees with respect. In fact, Title VII of the Civil Rights Act includes gender identity under sex discrimination as a protected class. Consult with your legal counsel to ensure you are meeting the requirements under federal law, as well as any other state requirement for all potential categories of discrimination.

While pregnancy is not considered a disability under the Americans with Disabilities Act (ADA), many state laws require employers to interactively dialogue with pregnant employees seeking an accommodation. However, reviewing accommodation requests from all pregnant employees makes an employer’s administration easier because leave administrators will not need to spin the roulette of “does this employees’ state require accommodations?” Doing so sends a message to employees throughout the company that all pregnant employees are valued — leading to stronger morale (and perhaps increased retention).

Fortunately, on June 27, 2023, as the Pregnant Workers Fairness Act (PWFA) will go into effect — requiring employers to provide reasonable accommodations to all pregnant employees regardless of their work state. However, working to provide reasonable accommodations now will help employers prepare for the law and ensure compliance on and after June 27.

Inclusivity through “blood and affinity” relationships

States like Washington, New Jersey, Connecticut, California, Oregon, and Colorado have added a “blood and affinity”-like relationship to their comprehensive paid or state leave — which generally means any person with whom the employee has a significant personal bond that is or is like a family relationship, regardless of biological or legal relationship. What makes this complex is that each state has its own definition of “blood and affinity” that must apply to an individual’s situation in order to be granted comprehensive paid or state leave in that particular state.

However, employers must remain apprised of different state requirements. For example, Washington State’s Paid Family and Medical Leave (PFML) states that blood and affinity means, “any individual who regularly resides in the employee’s home or where the relationship creates an expectation that the employee care for the person, and that individual depends on the employee for care. Family member includes any individual who regularly resides in the employee’s home, except that it does not include an individual who simply resides in the same home with no expectation that the employee care for the individual.”

This definition is vastly different than the one provided by New Jersey Family Leave Insurance (FLI), which states that in addition to any individual related by blood to the employee, “any other individual that the employee shows to have a close association with the employee which is equivalent of a family relationship,” also constitutes a “blood and affinity”-relationship.

A multidimensional approach

DEI values play a role in company benefits programs, leave policies and more. To ensure that all employees feel welcomed, valued, respected and heard, and have fair access to resources, opportunities and advancement requires companies to dig deep. To keep up with recent regulations. And to continue to evaluate and evolve their DEI strategies and practices.

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