Colorado is among a handful of U.S. states operating on the cutting edge of various employee pay, benefits, and mobility rights initiatives. We previously blogged about a few of these initiatives, including Colorado’s recent enactment of criminal penalties for enforcement of overbroad non-competition agreements, as well as the Colorado Equal Pay For Equal Work Act, which among other things requires employers with at least one employee in Colorado to be transparent about salary expectations for new job openings that could be performed in Colorado.
Another such initiative, the Colorado Paid Family and Medical Leave Insurance Act (“PFML”), which was approved by Colorado voters in the 2020 election cycle, has come under recent attack.
As written, the PFML law would entitle Colorado workers to annually take up to 12 weeks of paid family and medical leave. Under the law, leave is paid for by employer and employee contributions in the form of payroll deduction premiums. Employees cannot begin using benefits until 2024, but the payroll deductions necessary to fund the program are slated to begin on January 1, 2023. Importantly, employers with fewer than 10 employees are not required to pay the premiums, and certain employers (local governments, independent contractors, sole proprietors, partners, and joint venturers) are not required to participate in the program at all. Based primarily on these differences in payroll deduction obligations, the Colorado Supreme Court recently...
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