Update Applicable to:
All employers with 10 or more employees nationwide in the state of Colorado.
On August 26, 2022, the state published final regulations on benefits and employer participation requirements (Benefits Rules), which provide the most concrete guidance to date regarding the benefits to which employees will be entitled under the Family and Medical Leave Insurance (FAMLI) program as of January 1, 2024.
What are the details?
Beginning January 1, 2023, eligible employers in Colorado with 10 or more employees in their workforce nationwide, unless they opt-out and offer a leave plan equal to or greater than FAMLI, have the following requirements:
- Collect 0.45% of employee wages.
- Match the employee contribution rate of 0.45% (through 2025, as required by Proposition 118). After that, the rate will be set each year, but the combined rate is capped at 1.2%.
- Remit quarterly the employee and employer share of the premium (if applicable) to the fund.
- Paying into the fund begins on January 1, 2023.
Employers with fewer than 10 employees are not required to pay the employer share but will still need to deduct the employee share and remit those contributions.
Since this is a state insurance program, employers are not required to pay wages to an employee on leave. The state pays a portion of the individual’s average weekly wages through the fund. Employers must continue paying their usual portion of the employee’s health benefits. An employer could require that an employee on leave continue paying their share of the benefits contribution.
While employers and employees are required to pay contributions beginning January 1, 2023, employees cannot start filing claims for FAMLI benefits until January 1, 2024.
For more information, please see the links below:
What do employers need to do?
Employers should review the links above and prepare to start implementing payroll changes to collect employee contributions.
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