CO State Average Weekly Wage and FAMLI Benefits
Colorado updates its statewide average weekly wage (SAWW) effective each July. Starting July 1, 2023, the SAWW is set at $1,421.16. This is the last piece of the formula needed to calculate CO FAMLI benefit amounts for the first half of 2024.
This is something important to consider specifically for Colorado. If you’re familiar with similar statutory benefit programs in other states, such as New York’s Paid Family Leave, mid-year updates to SAWWs usually go into effect for Paid Leave-related benefits in the following calendar year. In Colorado however, the adjusted SAWW amount takes effect within the same calendar year. This means, when Colorado updates the SAWW again next year, the benefit amount will accordingly change mid-year 2024 – so be sure to subscribe for updates here.
How do you calculate the CO FAMLI benefits for the first six months of 2024?
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Employee’s average weekly wage (AWW)
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Corresponding benefit calculation
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50% of CO SAWW Threshold = $710.58
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Threshold or less
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90% of employee’s AWW
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To a max of $639.52
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More than Threshold
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$639.52
(90% of employees AWW up to threshold)
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+
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50% of AWW above threshold
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Capped at $1,100
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Based on the CO SAWW of $1421.16 in effect from July 1, 2023, through June 30, 2024.
How do mid-year SAWW updates affect claims?
If a claim for Paid Family and Medical Leave begins before June 30, 2024, benefits for this particular claim will be based on the SAWW for the first half of 2024 for the entire duration of the claim even if it stretches past July 1, 2024.
CO FAMLI claims that start on or after July 1, 2024, will then factor in the updated SAWW assuming that Colorado makes its annual adjustment.
Here are a few examples to illustrate how it works:
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Claim Starts
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Employee’s AWW
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Anticipated Weekly Benefit
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Diego
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Jan 8, 2024
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$500
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$450
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Daihatsu
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Mar 24, 2024
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$1000
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$784.23
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Mikiko
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May 5, 2024
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$1500
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$1034.23
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Jerome
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June 15, 2024
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$2000
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$1,100 (cap)
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Taylor
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July 14, 2024
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$1000
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TBD*
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*Benefits can’t be accurately calculated until Colorado issues its SAWW effective July 1, 2024.
Stay up-to-date on CO FAMLI Benefits and other details of this vital program as it gears up to begin accepting claims for January 1st, 2024.
Learn more about Private Plans for CO FAMLI and whether it may be a good solution for your business!
This blog post is for informational purposes only and is not an offer of coverage or intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any information is based on the applicable statutes and regulations, and may change as regulations evolve or Colorado issues guidance regarding its paid Family & Medical Leave Insurance (FAMLI) regulations.
*The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier (principal office in Garden City, NY), and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.