[paragraphspace]
New Regulations for CO FAMLI Effective January 1, 2024
Recently, the Colorado FAMLI Division amended its final rules (adopted in 2022) to make it easier for employers to administer the Family & Medical Leave Insurance (CO FAMLI) program and provide clarity on additional items, including:
New definition of wages for CO FAMLI
Most notably, after taking feedback from the marketplace into consideration, the CO FAMLI Division made the definition of wages easier for both employers and employees to determine. Effective January 1, 2024, premiums and benefits will be calculated using this new definition of wages as pre-tax gross wages, which include typical employer compensation, such as:
- Salary
- Hourly wage
- Overtime
- Tips
- Bonuses
- Commissions
- Piece rate
- Employer-provided paid leave (PTO, sick, vacation, etc.)
- Disability benefits paid by the employer and not by a third-party
- Parental leave paid by the employer and not by a third party
- The value of lodging or meals used as a credit toward the minimum wage
Gross wages do NOT include:
- Severance payments
- Deferred compensation contributions or payments
- Profit-sharing
This is a change from previous guidance providing benefits based on post-tax net wages.
Fine for non-payment of CO FAMLI premium
The FAMLI Division also established the fine amount if premiums are not received electronically (or postmarked) by the due date. Starting in 2023, for those using the State’s plan, the fine is now set at a max of $50.00 per employee for larger employers (employers with 10+ employees). For smaller employers (under 10 employees) the fine is set as a max of $25 per employee.
Process for local governments eased
Local governments may now vote to opt-out in the way they typically conduct similar business. The new rule also:
- clarifies local government notification requirements, including when the local government is declining coverage.
- eliminates the FAMLI Division’s requirement to provide certain local governments with a quarterly list of their employees who have opted-in, information that is readily available without assistance from the Division.
CO FAMLI private plan refund process
Lastly, while it is not an amendment to the final rules, the FAMLI Division also announced that it began the process to initiate refunds to CO FAMLI employers who use private plans for their benefits coverage. Employers can contact the FAMLI Division at 866-CO-FAMLI (866-263-2654) where applicable.
Want to learn more about CO FAMLI private plan coverage? Get everything you need to know about how to apply for a ShelterPoint private plan here.
Never miss an update! Subscribe here to stay up-to-date with the latest information on all things CO FAMLI.
The information in this blog post is based on our knowledge of the CO Family & Medical Leave Insurance Act (CO FAMLI) and regulations at time of posting, and may change as regulations evolve or the CO FAMLI Division issues guidance regarding the regulations. It is not an offer of coverage or intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice.