Colorado FAMLI Benefits Become Available to Employees January 2024

What Changed

Colorado's Family and Medical Leave Insurance (FAMLI) program reaches its next major milestone on January 1, 2024. While premium deductions began in January 2023, employees can now draw benefits from the program to receive wage replacement during qualifying family and medical leave. Qualifying reasons include:

• Caring for a new child (birth, adoption, or foster placement)

• Caring for a family member with a serious health condition

• The employee's own serious health condition

• Needs related to a family member's military deployment

• Safe leave for domestic violence, sexual assault, or stalking

Critically, the law also prohibits employers from discriminating against or retaliating against employees who take FAMLI-qualified leave.

Who Is Affected

All Colorado employers are affected. Employees who have earned at least $2,500 in wages during their base period are eligible for benefits. Both employers and employees share premium costs: the total premium rate is 0.9% of wages, split evenly between employer and employee (employers with fewer than 10 employees are exempt from the employer share but employees still contribute).

Where It Applies

Colorado statewide.

When It Takes Effect

January 1, 2024 for benefit availability. Premium deductions have been in effect since January 1, 2023. Employees may take up to 12 weeks of FAMLI leave (16 weeks for pregnancy or childbirth complications).

Why It Matters

With benefit payments now active, FAMLI moves from a payroll obligation to a leave management reality. Employers must:

• Maintain health care coverage for employees on FAMLI leave

• Hold positions open and restore employees to the same or equivalent position upon return

• Not discriminate or retaliate against employees who take or apply for FAMLI leave

Penalties for violations can include liability for lost wages and benefits, up to 12 weeks of wages in actual damages, an equal amount in liquidated damages, equitable relief (including reinstatement), and attorney's fees.

The Humareso Take

The heavy lifting of getting FAMLI premiums flowing is already done. Now comes the management challenge: handling actual leave requests, coordinating benefits with your existing leave policies, and making sure you do not inadvertently retaliate against someone for using the program. The anti-discrimination provision is the piece that catches employers off guard. Make sure your managers understand that an employee using FAMLI leave cannot be treated differently upon return. Get your leave coordination procedures documented now.

Recommended Action Steps

1. Review and update your leave policies to address FAMLI benefit coordination with existing PTO, sick leave, and FMLA policies.

2. Train managers and supervisors on FAMLI leave rights, the anti-discrimination and anti-retaliation requirements, and the job restoration obligation.

3. Establish procedures for processing FAMLI leave requests, including how employees apply for benefits and how your organization tracks leave.

4. Confirm your health insurance administration can maintain coverage for employees on FAMLI leave.

5. Update your employee handbook with information about FAMLI eligibility, benefits, and the process for requesting leave.

6. Contact your Humareso representative to ensure your Colorado leave policies properly coordinate FAMLI with other state and federal leave programs.