Colorado Paid Family and Medical Leave

• Provides up to 12 weeks (plus an additional four weeks for pregnancy complications) of paid family and medical leave benefits to eligible employees working within the state.
• Uses abroad definition of family including any individual with whom the employee has a significant personal bond that is like a family relationship.
• It is the first voter approved Paid Family and Medical Leave (PFML) program in the country.
• Includes job protection for employees who have worked for an employer for at least 180 days.

• All private employers with one or more employee working within the state of Colorado during twenty weeks in the current or prior calendar year; or paid wages of $1,500 or more during any calendar quarter in the preceding calendar year.
• State and political subdivisions are included.
• Local government (any city, county, town, school district, special district or other political subdivision of the state) are included but have the option to opt out of the program. Vote requirement is necessary to opt out of program participation. Visit the state website for more information, https://famli.colorado.gov/employers/local-governments
• Federal government employers and employees are excluded from coverage requirements.

Most employees who work for a covered employer become eligible for CO PFML benefits after they have earned at least $2,500 in wages, subject to premium contributions, over a period of a year.

Eligible employees can take paid leave for the following leave types/qualified leave reasons:

• Bonding after birth, adoption or foster placement of a child
• Care for family member with a serious health condition
• Qualifying military exigency
• Safe leave due to domestic violence, stalking, sexual abuse or assault
• An employee’s own serious health condition

Covered family member includes child, parent, spouse, domestic partner, grandparent, grandchild, sibling, or any individual with whom the employee has a significant personal bond that is like a family relationship.

• Employee will be eligible for up to combined 12 weeks of paid family and medical leave for any qualified leave type, with up to an additional 4 weeks of leave available to employees with a serious health condition related pregnancy or childbirth complications. The total combined maximum weeks available will be 16 weeks within a benefit year.
• Leaves may be taken on a continuous or intermittent basis in full day increments.
• The weekly benefit will vary based on an employee’s average weekly wages.  The weekly benefit will be calculated as:
  • 90% of employee’s average weekly wage that is less than or equal to 50% of the state average weekly wage (SAWW),
  • Plus 50% of employee’s average weekly wage that is greater than 50% of the SAWW, up to the maximum weekly benefit.
• Maximum weekly benefit will be $1,100 for 2024. (90% of the SAWW for subsequent years)
• Job protection is included for employees who have been employed with their employer for at least 180 days.

CO PFML requires employers to begin payroll deductions starting January 1, 2023. Q1 contributions must be submitted to the FAMLI division by April 30, 2023.

State contribution rates for 2023 and 2024 have been set at 0.9% of employee’s wages, up to the Social Security Wage Base. Rate is subject to change annually post 2024 but is statutorily capped at 1.20%.

• Shared Cost – 50% Employee Paid; 50% Employer Paid
• Under the state program, employers with fewer than 10 employees do not pay the employer share of the premium but must forward the employees’ premium share to the program. The employees’ share may be withheld through payroll deductions.

Employers can participate in the state-run program, or they can self-insure or fully insure a private PFML plan. If an employer opts out of the state program, the private coverage they choose to provide must:

• Be approved by the state of Colorado
• Meet or exceed the requirements of the state program
• Costs employees no more than the state plan

Colorado‘s Division of Family and Medical Leave Insurance (FAMLI) will develop employee notices for employers to use to communicate the details of the CO PFML program. Employers will be required to provide written notice to all eligible employees of their benefits and rights under the CO PFML program, either by a posting in the workplace, upon hire, and at time of claim for benefits under CO PFML.

• CO PFML Benefit Provisions
• CO PFML State Website

Guardian will be offering a fully-insured private plan option for CO PFML coverage, effective January 1, 2024. An employer is expected to be able to apply to the state for approval of a private plan in Q1 2023.

The state of Colorado with the Division of Family and Medical Leave is currently developing its PFML regulations, including specifics on how its program will be implemented.  We are actively collaborating with the state of Colorado, monitoring all developments as they become available. We will keep our customers and brokers informed every step of the way.

You can count on:

• Dedicated support to file a private plan exemption with the state.
• Assistance with adjusting Short Term Disability (STD) and Long Term Disability (LTD) plan designs to integrate with a PFML plan.
• A single point-of-contact for disability and/or paid leave claims inquiries.
• Experienced claims management by tenured professionals, including safe and effective return to work support.
• Updates on new regulations and ongoing guidance to keep you compliant.