Understanding Colorado’s New Paid Family and Medical Leave Program

In a significant step towards supporting employees during the most pivotal life events, Colorado has launched the statewide Paid Family and Medical Leave Insurance (FAMLI) program. This initiative began on January 1, 2024, and aligns Colorado with ten other states that offer similar benefits, and if you are curious about those others states, here they are (#1 isn’t a surprise!):

1. California
2. New Jersey
3. Rhode Island
4. New York
5. Washington
6. Massachusetts
7. Connecticut
8. Oregon
9. Maryland
10. Delaware

Despite its complexity and lengthy legal guide, we wanted to make this a bit easier to understand, so we crafted this breakdown of what Colorado employers need to know about this new program. And of course, if you would like more information, feel free to peruse the Colorado State website, located here.

FAMLI Coverage and Colorado Employer Obligations:

• Eligibility: Employees can use FAMLI for several reasons including the birth, adoption, or foster placement of a child, caring for a family member with a serious health condition, managing personal health conditions, military deployment arrangements, or issues related to domestic violence.
• Employer Participation: All private sector and state government employers, including those with just one employee, are required to comply. Local government employers can opt-out. The program also covers full-time, part-time, seasonal, and temporary workers.
• Voluntary for Independent Contractors: Self-employed individuals and independent contractors can choose to participate in the program.

Employer Responsibilities:

• Premiums and Contributions: Employers are responsible for registering with the FAMLI Division, remitting employee premiums, and reporting wage data quarterly. Those with fewer than 10 employees are only required to submit wages, with the option to cover employee premiums as a benefit. To get started you need to register on the My FAMLI+ Employer website.
• Annual Headcount: Employers must calculate their headcount annually to determine if they meet the threshold of 10 employees for additional responsibilities. Premiums for non-Colorado employees are not required.

FMLA and FAMLI :

• FAMLI and the Federal Family and Medical Leave Act (FMLA) run concurrently, meaning if an employee qualifies for both, the time used counts towards both entitlements. Employers and employees can agree to use sick or paid time off in conjunction to achieve full wage replacement.

Job Protection:

• Similar to FMLA, employers must guarantee the same or an equivalent position to employees returning from FAMLI leave, provided they have been employed for at least 180 days prior to the leave.

Action Steps for Colorado Employers:

1. Verify Eligibility: Check if your business falls under the FAMLI mandate.
2. Plan Selection: Consult with your benefits broker to select the most appropriate plan for your needs.
3. Registration and Setup: Register with the FAMLI Division and set up necessary payroll deductions.
4. Policy Update: Ensure your company policies and employee handbooks reflect these new changes.

Colorado’s FAMLI program marks a critical advancement for workplace flexibility and support. While navigating these changes might seem daunting, especially for smaller businesses without a dedicated HR team, resources like having a Fractional HR Partner can greatly simplify the process and give you the support you need to be compliant. Complete this form to learn more!