Colorado has enacted a Paid Family and Medical Leave Insurance (FAMLI) Program, with paid leave benefits available to eligible Colorado workers starting January 1, 2024, under the Colorado Paid Family & Medical Leave Insurance Act.
All Colorado businesses need to create an account and register on the My FAMLI+ portal before April 30, 2023.
Contributions to the state administered program begin effective January 1, 2023 and the first premium payments are due April 30, 2023.
The CO FAMLI program allows for equivalent plans either self-funded or fully insured through approved insurance carriers. State approval is required. The private plan application process will open sometime between Q1 and Q3 of 2023. Applications submitted by October 31, 2023, with approved private plans, will be eligible for contribution refunds.
To help ensure an optimal experience for employees, businesses must choose between the state-run plan, or a private plan for their Colorado Paid Family and Medical Leave (CO PFML) coverage. If your business is considering a private plan, see below for more information to assist you in meeting your obligations as a Colorado employer.
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:
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.
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%.
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:
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.
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:
Effective employee leave management is key to ensuring your business remains compliant with state laws, helping you avoid costly fines.
Guardian has provided employers with statutory disability plans for more than a decade, taking a consultative approach to bring resources together for successful PFML plan implementation and management, no matter the level of complexity. Our management of PFML plans help ensure that any Human Resources team can meet the challenge of efficiently managing employee leaves while helping to ease administrative burden and enhancing compliance. Our plans are fully insured, state-approved, and backed by digital capabilities designed to help make administration easier.
Further, our Guardian absence management solutions can help reduce the administrative burden and enhance compliance with the integrated management of STD and LTD benefits, state and federal family medical leaves, and company leaves. Available to companies with 50 or more employees, employers can choose from a variety of plans and service options, including ADA support.
To learn more about Guardian leave management services, reach out to your Guardian group sales consultant or broker.
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