All Colorado employers need to be aware of new requirements that start on January 1, 2023, under Colorado’s Family and Medical Leave Insurance (“FAMLI”) law. Under FAMLI, Colorado employees are entitled to take up to 12 weeks of paid family and medical leave for various circumstances. The critical components for compliance with this new law are as follows:
- Colorado employers are required to notify their employees about the FAMLI program by January 1, 2023. Employers can obtain this notice from the Colorado Department of Labor and Employment (CDLE) or by reaching out to Fortis. The notice requirement is threefold:
- Post the notice in the workplace or, if remote, on a company electronic drive/intranet.
- Notify employees of the program in writing both now and, going forward, upon hire.
- Provide the notice again if you learn that an employee is experiencing an event that triggers eligibility (discuss this with your attorney due to some concerning elements, such as challenges that may arise involving interaction with disability laws).
- Employers are required to begin premium deductions on January 1, 2023.
- All employers, regardless of size, will be required to register with the FAMLI Division before the first premium payment is due at the end of the first quarter of 2023. Benefits will become available to workers starting in January 2024.
- Employers and their employees are both responsible for funding the program and may split the cost 50/50. The premiums are set to 0.9% of the employee’s wage, with 0.45% paid by the employer and 0.45% paid by the employee.
- Businesses with nine or fewer employees do not have to contribute to the program but do need to remit their employees’ share (0.45%) of the premium on behalf of employees each quarter. This can be done through a simple payroll deduction.
- There are some optional steps you can take, such as providing the “paycheck stuffer” and adding an employee handbook insert.
As mentioned above, Colorado employers are required to notify their employees about the FAMLI program by January 1, 2023 and begin making premium deductions. For more information, contact Leni Plimpton or Christine Lamb.