Companies with employees working in Colorado must prepare now for that state’s Family & Medical Leave Insurance (“FAMLI”) program, which will provide paid leave to eligible employees for certain qualifying events beginning in 2024. Covered employers will need to register for the FAMLI program and periodically submit certain wage data and required premiums to the State’s FAMLI Division to help fund the program. Some of the important steps for covered employers to take to comply with the new FAMLI Program include the following:
Step 1 – Post the 2023 Program Notice.
Step 2 – Determine how many employees you employed for 20 or more calendar workweeks in 2022.
- Employee headcount is calculated once per year. It will be reported upon initial registration into the FAMLI Program and in the first quarter of every year thereafter.
- The total number of employees is the number of individuals employed during each of 20 or more calendar workweeks in the preceding calendar year, regardless of how many hours and/or days they worked during each week.
- Employees on leave must be counted if they are expected to return to active employment (including employees on any type of leave, disciplinary suspension, etc.).
- Employers must include all individuals they employ for purposes of this calculation – even those who do not work in Colorado.
Step 3 – Determine whether you will require employees to contribute toward the program premiums or whether you will cover the total amount of the premiums.
- Employers with nine or fewer employees must remit .45% of Colorado employees’ wages to the FAMLI Program fund. These employers may voluntarily pay this premium or may deduct this amount from employees’ wages.
- Employers with ten or more employees must remit a total of .9% of Colorado employees’ wages to the FAMLI Program fund. These employers must pay at least .45% of the premium; they can voluntarily pay the remaining .45% or may deduct the remaining .45% from employees’ wages.
- The Employer’s Guide to FAMLI details what constitutes wages.
Step 4 – Register for the FAMLI Program with the FAMLI Division here, no later than April 30, 2023
Step 5 – Submit wage data and remit required premiums quarterly to the FAMLI Division, beginning April 30, 2023.
On the Horizon
Employers may also explore private plans to comply with the FAMLI law and submit them to the FAMLI Division for approval. Any premiums remitted to the State prior to the private plan being approved will be refunded.
Beginning in 2024, eligible employees can apply to the State for FAMLI leave benefits for certain qualifying events. The application process for FAMLI leave benefits is similar to the application process for unemployment insurance benefits.
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Tammy Somogye concentrates her practice on education and employment law, representing educational institutions, municipalities and businesses. In addition to handling administrative proceedings, conducting ...
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