All Colorado employers will be subject to new paid family and medical leave insurance obligations — starting on January 1 — thanks to the Colorado Family and Medical Leave Insurance (FAMLI) program. What do Colorado employers need to know about their responsibilities under the new law? Here are the answers to eight frequently asked questions to help you prepare for upcoming compliance deadlines.
1. What is the FAMLI Program?
By ballot measure, Colorado voters approved a state-run paid Family and Medical Leave Insurance program in November 2020. Beginning in January 2024, most Colorado workers will be eligible to apply for FAMLI leave benefits and receive compensation from the state while addressing family and medical needs for themselves or family members.
While leave eligibility does not begin until January 2024, Colorado employers have an obligation — starting January 1, 2023 — to collect FAMLI insurance premiums from workers’ wages and provide notice to workers about their new benefit. Private employers with at least 10 employees also must contribute insurance premiums to the state of Colorado to help finance the FAMLI program.
2. What Contributions Will Employees and Employers Make to FAMLI?
The employee share of FAMLI premiums is set at 0.45% of employee wages. All Colorado employers are required to facilitate collection of FAMLI premiums for their Colorado employees through a simple payroll deduction.
Employers with 10 or more employees are responsible for...
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