In 2020, the State of Colorado (CO) implemented a Paid Family and Medical Leave Insurance Program (FAMLI). FAMLI requires employers with at least one employee in CO, to provide up to 12 weeks of paid leave for any of the following reasons:
- To care for an employee’s own serious health condition;
- To care for a family member’s serious health condition;
- To care for a new child, including adopted and fostered children, during the first year after birth, adoption or placement of the child;
- To make arrangements for a family member’s military deployment;
- To take “safe leave,” meaning, leave because the employee or employee’s family member is the victim of domestic violence, stalking, or sexual assault or abuse.
In addition, FAMLI taken due to pregnancy or childbirth-related complications, permits an individual to receive an additional four weeks of paid leave, increasing the total amount of leave from 12 weeks to 16 weeks.
FAMLI will be funded by both employer and employee contributions via payroll deduction, beginning January 1, 2023, and employees will be able to apply for FAMLI benefits beginning January 1, 2024.
Notice Requirements
The FAMLI Division has published a notice employers must use to satisfy their posting requirements under the FAMLI law. The FAMLI statute requires that employers post a notice to inform workers about the FAMLI program by January 1, 2023.
Private Plans
The state has also finalized rules regarding private plans. An employer may apply to the FAMLI Division for approval to meet their obligations under the FAMLI law through a private plan that provides all the same rights, protections and benefits provided to employees under the law.
A private plan may be offered by a third-party insurance provider or via a self-funded and self-administered plan.
A private plan must comply with the following provisions:
- If self-funded, furnish a bond to the state, with an appropriate surety company, in the form, amount and manner required by the Division;
- Providing coverage for all eligible employees throughout their period of employment; and
- If a third party provides for insurance under the plan, the forms of the policy must be issued by an insurer approved by the state.
Employers that offer a private plan must cover their entire workforce and employees covered under a private plan cannot opt out.
Acceptance of documentation from employers who are under contract with licensed carriers to provide an approved plan began in November 2022. The FAMLI Division recognizes that intensive due diligence work with their various stakeholders may mean that the market of equivalent private plan options will not be available to employers before 2023, which is when employers must start paying FAMLI premiums. However, the Division also recognizes that employers who intend to have an approved private plan in place and effective by January 1, 2024, should not have to contribute funds to the state plan if they are receiving benefits elsewhere; therefore, for private plans that do not get approved by the Division before the first premium payments are due, the Division has created a temporary procedure whereby all employers will begin paying premiums in 2023, and those who secure an approved private plan effective on or before January 1, 2024, will be able to apply for a refund of paid 2023 premiums, minus the private plan administration fee.
My FAMLI+ Employer Portal
The My FAMLI+ Employer, online employer portal is now open to all CO employers. Employers, third party administrators (TPAs) and local government employers will use My FAMLI+ Employer to manage their FAMLI accounts. My FAMLI+ Employer will operate similarly to My UI Employer, allowing employers to report wage data, send premium payments, apply for exemption with a private plan and upload letters of declination votes.
Next Steps for Employers
Employers should ensure that they comply with the FAMLI notice requirements by January 1, 2023 by posting the notice in a prominent location in the workplace and providing written notice to all covered employees by January 1, 2023; to new employees upon hire; and to current employees upon learning that the employee is experiencing an event that triggers eligibility.
Covered employers should also ensure that they register with the Division using the MyFAMLI+ portal, even if offering a private plan. The registration process only takes about 20 minutes to complete. Registration must be completed by April 30, 2023 which is the first premium payment and wage report due date. Employers may receive additional instructions on the registration process using the Division’s step-by-step guides on the My FAMLI+ Employer page.
Information on the FAMLI program and employer obligations is available on the CO FAMLI website and in this recorded webinar from HR Works.
How HR Works Can Help
Lean on the experts at HR Works to manage the complexities of compliance when it comes to all the changing federal and state leave laws. For more information, contact us today.
