Leave administrator working with client

Colorado

The Colorado Paid Family and Medical Leave Insurance Act (CO FAMLI) is requiring contributions be taken effective 2023 and benefits are payable under this new state program as of 2024.

Leave administrator working with client

Colorado Paid Family and Medical Leave Insurance Act (CO FAMLI)

What is the Update?

The contribution rate effective 2023 will be 0.9%, shared equally (0.45 each) between the employer and employee.  Premiums are capped at the Social Security Wage base.  Employers with fewer than 10 U.S. employees are exempt from deductions and must deduct and remit only the employee portions to the state. 

Eligible employees will be able to take up to 12 weeks of leave per year, and an additional 4 weeks will be allowed for those who have pregnancy-related complications. The maximum benefit an employee can receive in 2024 will be 90% of their earnings up to $1,100 per week. The maximum weekly benefit will then be adjusted annually. Employees will be able to take leave and receive benefits under the program if they’ve earned $2,500 in wages in the last four quarters. Their leave will also be job protected, if they have worked for their current employer for 180 days. 

Employers cannot require employees to use PTO while on FAMLI leave. Employers and employers can agree, however, to use PTO to “top up” FAMLI benefits. Employees cannot receive more than their average weekly wage between FAMLI leave and PTO.

Employers may require that payments under the law be coordinated with payments made under the terms of short-term or long-term disability policies, however, employers must provide employees written notice of this requirement (The Larkin Company will include this written notice in our introductory letters).

Update (09/06/22): The Colorado Department of Labor is developing “My FAMLI+ Employer,” a portal to be released later this year, allowing employers to report wage data, remit premium payments, and more. Employers will be invited to register in small groups before January 2023. If you are interested in being invited to register early this fall you can do so here.

Handbook/Policy Updates

The law does not state any requirements for updating employer handbooks currently. However, you may wish to add information in your handbooks about the CO Paid Leave as the live date of the program draws nearer.   We will also keep our clients posted regarding any updates. 

Notice Requirements

Employers will be legally required to display an official workplace poster. The poster is not released by CO at this time. We will provide this to our clients, once published.  You may wish to use this optional temporary poster in the meantime – https://famli.colorado.gov/sites/famli/files/documents/BreakRoomPoster.pdf

 

Larkin Action

We will continue to monitor any updates regarding the law and will keep our clients updated, including a reminder on when and how to register to start taking employee/employer contributions.

Further Company Considerations 

Q3 – Register with FAMLI Division (once the state has confirmed how to do so) AND Update employee handbooks (optional at this time) using model language from the CO Department of Labor and Employment (CDLE) explaining payroll deductions, once this information is available from the Division.

Q4 – Set up payroll deductions for premiums, beginning on January 1, 2023

Resources

Employer Information (e.g. FAQs , Webinars, Premium Calculator)

https://famli.colorado.gov/employers

FAMLI Newsletter Subscription

https://colorado.us3.list-manage.com/subscribe?u=b8edaed9d386fc047dcd5cc35&id=26edecc729

Select another state

Select a state from the map below to view a consolidated version of information provided throughout the year.

Disclaimer

The Larkin Company has taken reasonable steps to ensure the accuracy of the information on this page, however we make no representation or warranty of any kind as to its accuracy or completeness. These resources should not be construed or substituted for legal advice. Accordingly, before taking any actions based upon such information provided herein, we encourage you to seek competent legal advice from a licensed attorney or appropriate professionals.