Colorado Family Act Compliance

Colorado FAMLI Act Compliance: A Guide for Employers

The Colorado Family and Medical Leave Insurance (FAMLI) Act introduces significant changes for employers across the state. Effective January 1, 2024, this legislation provides employees with paid leave for various family and medical reasons. As an employer, understanding and navigating the complexities of the FAMLI Act is crucial to ensure compliance and maintain smooth business operations. Baker Law Group is dedicated to assisting Colorado employers in comprehending and implementing the requirements of the FAMLI Act, ensuring legal compliance, and fostering a supportive workplace environment.

Overview of the Colorado FAMLI Act

The FAMLI Act establishes a state-run insurance program to offer employees paid family and medical leave. The program is funded through premiums collected from employers and employees, with benefits administered by the Colorado Department of Labor and Employment (CDLE). Eligible employees can receive up to 12 weeks of paid leave, with an additional 4 weeks available for those experiencing pregnancy or childbirth complications. This leave can be utilized for various qualifying events, including:

• Bonding with a new child (birth, adoption, or foster care placement)
• Caring for a family member with a serious health condition
• Addressing the employee’s serious health condition
• Managing needs related to a family member’s military deployment
• Handling immediate safety concerns arising from domestic violence or sexual assault

Employer Responsibilities Under the FAMLI Act

Compliance with the FAMLI Act requires employers to undertake several key actions:

1. Premium Contributions

• Premium Rate: Beginning January 1, 2023, a premium of 0.9% of employees’ wages is assessed. Employers with 10 or more employees are responsible for half of this premium (0.45%), while the remaining half is deducted from employees’ wages. Employers with fewer than 10 employees are exempt from paying the employer portion but must still remit the employee’s share.

2. Registration with My FAMLI+ Employer

• Account Setup: Employers must register with the CDLE’s online portal, My FAMLI+ Employer, to manage premium payments and wage reporting. Registration should be completed before the first premium payment is due.

3. Wage Reporting and Premium Payments

• Quarterly Submissions: Employers must submit wage data and corresponding premium payments every quarter. The deadlines for these submissions are:
  • April 30
  • July 31
  • October 31
  • January 31

Timely and accurate reporting is essential to maintain compliance and avoid potential penalties.

4. Employee Notifications

• Informational Requirements: Employers must inform employees about the FAMLI program, including details about payroll deductions, eligibility criteria, benefits, and the claims process. This involves:
  • Posting the 2023 Required Program Notice in a prominent workplace location by January 1, 2023
  • Providing written notice to new hires
  • Notifying employees when they experience a qualifying event

The required program notice is available in multiple languages on the FAMLI website.

5. Job Protection and Benefits Continuation

• Employee Rights: Employees employed for at least 180 days are entitled to job protection during their FAMLI leave. Employers must:
  • Restore the employee to the same or an equivalent position upon return from leave
  • Maintain existing health benefits during the leave period

It’s important to note that while employees are eligible for paid leave benefits after earning $2,500 in wages, job protection rights apply only after 180 days of employment.

6. Private Plan Exemptions

• Alternative Compliance: Employers offering a private paid family and medical leave plan that provides equal or more significant benefits at the same or lower cost to employees may apply for an exemption from the state program. To obtain this exemption, employers must:
  • Submit the private plan for approval by the FAMLI Division
  • Ensure the plan is effective on or before January 1, 2024

Until approval is granted, employers must participate in the state program, including premium contributions and wage reporting.

Navigating Compliance Challenges

Implementing the FAMLI Act’s requirements may present challenges for employers, particularly in understanding the nuances of the law and integrating new processes into existing systems. Common areas where employers may need assistance include:

• Payroll Adjustments: Modifying payroll systems to accurately calculate and withhold premiums.
• Policy Updates: Employee handbooks will be revised, and leave policies will be updated to reflect FAMLI provisions.
• Training Programs: Educating HR personnel and management about FAMLI compliance and employee rights.
• Record Keeping: Establishing systems to accurately track wage data, premium payments, and employee leave.

Proactive planning and seeking expert guidance can help mitigate these challenges, ensuring a seamless transition to compliance with the FAMLI Act.

How Baker Law Group Can Assist

Navigating the complexities of the FAMLI Act requires a thorough understanding of both legal obligations and practical implementation strategies. Baker Law Group offers comprehensive legal services to assist employers in achieving full compliance:

• Policy Development: We help craft and review workplace policies to align with FAMLI requirements, ensuring clarity and compliance.
• Training Programs: Our team provides training sessions for HR personnel and management to manage FAMLI-related processes and communications effectively.
• Private Plan Consultation: We offer guidance through the application process to secure state approval for employers considering a private plan.
• Ongoing Compliance Support: We stay abreast of any changes in the law and provide continuous support to ensure your business remains compliant.

Contact a Colorado Employment Lawyer

Ensuring compliance with the Colorado FAMLI Act is crucial for all employers operating within the state. Baker Law Group is dedicated to providing expert legal assistance to help your business navigate these requirements effectively. Contact us today to consult with an experienced Colorado employment lawyer and safeguard your business’s compliance and success.