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Beginning January 1, 2023, Colorado employers must begin remitting premiums for the state-run paid Family and Medical Leave Insurance Program (FAMLI). With that date drawing near, employers considering the private-plan option will want to review the final rules adopted by the FAMLI Division of the Colorado Department of Labor and Employment (CDLE).

The final private plan rules, adopted on November 1, 2022, include several changes from the proposed rules. An update on the FAMLI Division’s website listed the following notable changes:

• Approved private plans must take effect no earlier than 60 days after the application date.

• Private plan approvals are good for eight years, with more frequent data reporting and program attestation requirements.

• Employers applying for private plan approval will be subject to an initial $500 administration fee. Employers with approved private plans will be responsible for an annual maintenance fee based on the administrative costs of their plan. 

• If an employer moves from a private plan to the FAMLI program, there will not be a fee.

It’s important to note that all Colorado employers, even those pursuing a private plan, must pay FAMLI premiums in 2023.

“Those who secure an approved private plan effective on or before January 1, 2024, may apply for a refund of paid 2023 premiums, minus the private plan administration fee,” according to the FAMLI Division’s website.

Below are some additional key points for employers to know.

Benefits

An employer’s private plan must provide the same rights, protections, and benefits as the FAMLI program. The following are a few of the requirements, and you can learn more in this list of FAQs and in the CDLE’s 2023 Employee Handbook to FAMLI.  

• The plan must allow paid leave for the same reasons specified by FAMLI. Circumstances include caring for an employee’s own or a family member’s serious health condition; caring for a new child, including adopted and fostered children; making arrangements for a family member’s military deployment; and safety needs related to domestic violence or sexual assault.

• The plan must provide leave for the same number of weeks as FAMLI. Employees are eligible for up to 12 weeks of leave, and those who experience complications from pregnancy or childbirth may be entitled to an additional four weeks.

• The wage replacement rate and maximum weekly benefit cannot be less than the amounts required by FAMLI, which allows for “a rate of up to 90% of the employee’s average weekly wage with lower wage earners receiving a higher percentage,” according to the state. The current cap is $1,100 per week.

• The cost to employees under a private plan cannot be greater than what is charged to employees under FAMLI.

Application Process

Employers must apply with the FAMLI Division and obtain approval before private plans can be implemented. According to the Division’s website, the private plan application process will open “sometime between Q1 and Q3 next year. We will provide how-to guides with step-by-step instructions to complete the process within My FAMLI+ Employer once the functionality is available.” The state’s final private plan rules detail the specific information an employer will need to provide during the application process.

Available Resources

Employers can learn more about their various responsibilities surrounding the leave program by visiting the FAMLI Division’s Toolkit for Employers. Employers Council also offers numerous online resources, including this whitepaper, and we will keep members updated on the latest developments. If you have any questions, please email the Member Experience Team.