Colorado Department of Labor and Employment Releases Proposed Rules Regarding Paid Family and Medical Leave Insurance Act Private Plan Options

By Shana D. Velez, Esq.

Colorado’s Paid Family and Medical Leave Insurance Act, C.R.S. §§ 8-13.3-501 et seq., (“FAMLI”), requires employers to register with MyFAMIL+ prior to January 1, 2023 and begin paying premiums and submitting required reports to the FAMLI Program on January 1, 2023.  Employers have options as to whether they choose to participate in the state-run FAMLI program and pay associated premiums to the state, or provide required paid family and medical leave through third-party private insurance or a self-insured plan.  On October 17, 2022, the Colorado Department of Labor and Employment (“CDLE”) will hold a public hearing on its recently-released proposed rules regarding the option to use private insurance plans in lieu of the state-run plan.[1]

FAMLI requires that any private or self-insured plans provide the same or greater benefits than the state-run FAMLI program.  Specifically, any private plan must:

1.      Provide the same number of weeks of benefits;

2.      Provide the same level of wage replacement;

3.      Include no additional requirements or conditions;

4.      Deduct no more than the same amount from employee paychecks to fund the plan;

5.      Cover all employees through the duration of their employment, which requires that any employee must be eligible for paid family and medical leave benefits after they have earned $2,500.00 in the state of Colorado (not necessarily all at their current place of employment);

6.      Remain compliant with other FAMLI requirements; and

7.      Be approved by the state as compliant.

If a private plan is approved and in effect by January 1, 2024, FAMLI will reimburse premiums paid to the state-run program for the 2023 calendar year as long as the application for approval and administrative fee are paid no later than October 31, 2023.  Premiums will not be reimbursed if the plan does not go into effect by or before January 1, 2024, even if the private plan is approved prior to that date.

Key Takeaways:

The rules regarding the option to use private or self-insured plans in lieu of the state-run FAMLI program are not finalized.  The CDLE is accepting comments regarding the proposed rules until 8:00 a.m. on October 18, 2022, online.[2]  Once the rules have been formally adopted, Campbell Litigation is prepared to provide guidance as to the process to request approval of private or self-insured plans to comply with Colorado’s Family and Medical Leave Insurance Act. 

[1] See 7 CCR 1107-5 at https://famli.colorado.gov/proposed/adopted-rules.

[2] See https://docs.google.com/forms/d/e/1FAIpQLSckyYPF0xubYk1NHU0iFJYi0BOiIq9sNUbU7bLRCJzn0cpAWw/viewform