The term "domestic partnership" generally refers to an unmarried couple, either of the same or opposite sex. An employer's policy decisions regarding domestic partnerships will be shaped by state and federal laws, business needs, and workforce demographics. Policy decisions most often arise in the context of extending existing health insurance and other benefits to domestic partners.

Many employers now voluntarily offer benefit coverage to domestic partners, even if not required to by law. This trend is driven by several factors, including changing demographics, the desire to be fair, workplace diversity, and the need to improve employee morale. There are a number of legal ramifications, including tax issues, to consider if an organization intends to offer benefits to domestic partners.