Colorado FAMLI Program Rollout: What You Need to Know

Posted on: September 6th, 2022 by

Colorado voters approved Proposition 118 in November 2020, paving the way for a state-run Paid Family and Medical Leave Insurance (FAMLI) program. The FAMLI program will ensure all Colorado workers have access to paid leave in order to take care of themselves and their family during life circumstances that pull them away from their jobs. These situations may include, but are not limited to:

FAMLI will start providing benefits to employees beginning January 1, 2024. While the rollout of this program is still a year and a half away, there are important items that will begin to impact your business as early as January 2023. The following information will help ensure you understand what needs to be done to remain in compliance with the new FAMLI program requirements.

Funding for the Program Starts a Year in Advance

Both employers and employees will contribute premiums for the program. Employees may start to see a premium contribution on their pay stubs beginning January 1, 2023.

Make sure you inform your employees of this deduction from their pay so that they are aware it is coming and have an opportunity to ask any questions prior to their first premium contribution in January 2023.

Private Plans Can Be Used to Fulfill FAMLI Obligations

Colorado FAMLI Program rolloutThe FAMLI Act allows employers to satisfy their obligations by offering an equivalent private plan. Equivalent private plans may take the form of:

Equivalent plans must be approved by the FAMLI Division in order to satisfy an employer’s obligations under the new program. The FAMLI Division is committed to developing and implementing rules that will govern the processes and procedures surrounding approved private plans. As part of this process, the FAMLI Division is working closely with employer organizations, the Colorado Division of Insurance, insurance companies, and workers’ rights organizations to ensure that the forthcoming Private Plan Rules work for all affected Coloradans.

The FAMLI Division recognizes that this intensive due diligence work with all stakeholders involved may mean that the market of equivalent private plan options will not be available to employers before 2023, which is when employers must start paying FAMLI premiums. However, the FAMLI Division also recognizes that employers who intend to have an approved private plan in place and effective by January 1, 2024 should not have to contribute funds to the state plan if they are receiving benefits elsewhere.

Therefore, the FAMLI Division has created a temporary procedure that will allow all Colorado employers to begin paying premiums in 2023, and those who secure an approved private plan effective on or before January 1, 2024 will be issued a refund of paid 2023 premiums, minus the private plan administration fee.

Additional Provisions Associated with the New FAMLI Program

Under the FAMLI Act:

Additional details can be found at the Colorado FAMLI Program website.

PassioHR Will Keep You Apprised as New FAMLI Program Developments Are Announced

The information discussed above is a summary of all the important details released by the FAMLI Program to this date. Details are still being worked out, and there may be additional updates at a later time as this program evolves.

PassioHR is your go-to source for all information associated with the new FAMLI Program. We will provide updates on our website as new details emerge. In addition, all of our clients can reach out to their PassioHR benefits consultant at any time if they have questions regarding the new program. We will communicate regularly with our clients when deadlines approach or new requirements are announced to ensure your business remains in compliance.

At PassioHR, we’re committed to elevating the success of your business. When you receive employee benefits services from us, you’ll have peace of mind that your business will always remain in compliance with any new laws, regulations and requirements that arise over time.

Contact us today to schedule a free consultation or to learn more about the new Colorado FAMLI Program.

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