Editor’s note: This article is part of an ongoing series intended to help employers prepare for the January 2024 start of employee benefits under Colorado’s FAMLI program. Look for the final installment next week.
More than 1,320 local government (public) employers have opted out of the Family and Medical Leave Insurance Program (FAMLI), according to the FAMLI website. Unlike private employers, local government employers that voted to decline participation in the program are not required to have an equivalent paid leave plan in place. However, their employees can opt into the FAMLI program voluntarily starting January 1, 2024.
These voluntary participants will pay 0.45% of their wages on a quarterly basis and are committed to participating in the FAMLI program for three years. Public employees can enroll in the program at any time, but they will need one quarter of coverage before they can file a claim. Voluntary participants can elect retroactive coverage so they can file a claim as early as January 2024. If a public employer has opted to facilitate payroll deductions, the employee should notify their employer after enrolling in FAMLI so payroll deductions can start.
For public employers that have opted out of FAMLI, what does this mean? Does the participating employee now have job protection or continued insurance benefits when their FAMLI claim is approved by the state?
Maybe, but not because of FAMLI participation. Public employers that have opted out of the FAMLI program are not required to maintain the employee’s health insurance during the FAMLI leave. However, their current leave policies or benefit plans may require that the employee’s health insurance be continued if the event qualifies under those policies or plans. For example, an employee may be entitled to health insurance continuation if the leave also qualifies under the Family and Medical and Leave Act (FMLA).
Under FAMLI, a public employee who voluntarily opts in is not entitled to job protection under FAMLI. However, the employee may be entitled to return to their current or equivalent position under FMLA or the public employer’s other leave policies.
Tips for public employers:
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Be registered with MyFAMLI+ Employer so that you can view any claim activity by your participating employees. Be sure to designate a dedicated point of contact, such as your benefits or leave administrator, so they can receive information when an employee applies for FAMLI leave.
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Notify your employees that they must provide 30 days’ notice for FAMLI leave that is foreseeable or notice as soon as practicable when unforeseeable.
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Review your benefit policies to see how FAMLI will interact with them. Keep in mind that an employee receiving FAMLI benefits cannot be paid more than 100% of their average weekly wage. Notify your employees if your policy states that benefits will be offset by any state-provided insurance benefits.
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Review your leave policies. Notify your employees in advance if you make the decision to modify any of your current medical/family/personal leave policies so that FAMLI will run concurrently with these leaves.
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Have a plan in place to collect insurance premiums while an employee is on FAMLI leave.
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Use our sample FAMLI Leave Pay Supplemental agreement if you will allow employees to “top off” their FAMLI benefits with available sick, vacation, or PTO time.
Employers seeking further guidance on FAMLI can contact Employers Council. For more information on the program, you can access our FAMLI Resources Community page, which has links to helpful resources.