Colorado Family Leave Act: CO Employers Guide 2024

The Colorado Family Leave Act (CFLA) is a significant shift in family leave regulations for employers in Colorado. Some employers may already partially comply with CFLA provisions due to their existing leave procedures. However, other employers may have to revisit their policies.

Mosey’s guide will dive into the details of the Colorado Family Leave Act, how it compares to the Family and Medical Leave Act (FMLA), its implementation timeline, and practical steps for compliance. We’ll also share how Mosey can help you manage state compliance.

What Is the Colorado Family Leave Act?

The Colorado Family Leave Act is a state-level law that provides employees with paid family and medical leave. Unlike federal laws, which offer unpaid leave, the CFLA ensures workers can take time off for family and medical reasons without losing income.

The act aims to support workers who need time to care for themselves or their family members during significant life events, such as the birth of a child, serious health conditions, or family emergencies.

Under the CFLA, employees are entitled to a set number of weeks of paid leave funded through a state insurance program. This program is designed to alleviate financial stress for workers who would otherwise be unable to afford to take time off. The act intends to promote work-life balance and support families.

How Does the Colorado Family Leave Act Differ from FMLA?

While the Colorado Family Leave Act and the Family and Medical Leave Act (FMLA) provide essential employee protections, they have a few key differences.

Paid vs. Unpaid Leave

The most significant difference is that the CFLA provides paid leave, while the FMLA offers only unpaid leave. This means that employees under the CFLA will receive a portion of their wages during their break, which can significantly ease the financial burden of taking time off.

Coverage and Eligibility

FMLA applies to all employers with 50 or more employees within a 75-mile radius and requires employees to have worked at least 1,250 hours in the past year to be eligible.

In contrast, the CFLA covers most employees and does not have the same hour requirements for eligibility. This broader scope makes the CFLA accessible to a wider range of workers.

Leave Duration

The FMLA provides up to 12 weeks of unpaid leave in a 12-month period, while the CFLA provides up to 12 weeks of paid leave. In some cases, employees can access additional leave if needed.

Funding and Administration

The CFLA is funded through employee payroll deductions, while the FMLA does not involve any direct financial compensation from the federal government. The CFLA’s funding mechanism helps ensure that paid leave is sustainable and accessible for employees.

When Does the Colorado Family Leave Act Go Into Effect?

The Colorado Family Leave Act’s provisions took effect on Jan. 1, 2024. This means all eligible employees can currently use their paid leave.

New employers should prepare for this transition by writing compliant policies and ensuring they understand the specifics of the new law.

Who Is Required To Comply With the Colorado Family Leave Act?

All employers in Colorado must comply with the CFLA, regardless of size. That includes small businesses with less than 50 employees, which were previously exempt from federal family leave requirements. The law also applies to any business with at least one employee working in Colorado.

Employers need to be aware of the act’s scope to ensure they meet their obligations. That means updating employee handbooks, adjusting leave policies, and possibly providing training for HR personnel to oversee paid leave implementation.

What Are the Qualifying Reasons for Paid Leave Under the Colorado Family Leave Act?

The Colorado Family Leave Act uses many of the same qualifying reasons as the FMLA but requires employers to compensate employees for qualified leave.

Qualifying reasons include:

Personal Health Conditions: Leave can be taken for an employee’s own serious health condition that prevents them from performing their job.
Family Health Conditions: Employees can take leave to care for a family member with a serious health condition, including spouses, children, parents, or other close relatives.
Pregnancy and Childbirth: Leave is available for pregnancy-related conditions and childbirth, including recovery from childbirth and prenatal care.
Bonding With a New Child: Employees can use leave to bond with a newborn, newly adopted child, or child placed through foster care.
Family Emergencies: Leave can be taken for urgent and unforeseen family situations, such as a severe illness or injury affecting a family member.
Caregiving for a Family Member: Leave can also be used to provide necessary care or support to a family member with a serious health condition.
Short-Term Personal Needs: Employees may take leave for short-term personal needs related to health or family matters that require time off from work.
Legal or Administrative Needs: Leave can be used for handling legal or administrative tasks related to a family member’s health or caregiving needs.

The maximum amount of paid leave depends on the reason an employee takes leave. In certain circumstances, employees may be eligible to extend their paid leave.

How To Comply With the Colorado Family Leave Act

Compliance with the Colorado Family Leave Act involves revisiting your policies, informing your employees, and training your HR team to implement a compliant leave policy properly.

Update Policies and Procedures

Ensure your company’s leave policies comply with the CFLA. This includes integrating paid leave provisions into your employee handbook, specifying how to request leave, and detailing the documentation required for approval.

You can exceed the mandatory leave offerings by providing employees with more paid leave, but you cannot offer them less. If your current paid leave policy is already more generous than CFLA, you don’t need to reduce it. If you already offer paid sick leave (PSL) or paid time off (PTO), consider how policies interact.

Educate Employees

Communicate the changes to your employees. Provide information on how they can apply for leave, the amount of leave available, and any documentation they need to provide. Clear communication helps employees understand their rights and how to utilize their benefits.

It’s also important to avoid the appearance of intentionally allowing employees to be uninformed of their new rights under the CFLA or to dissuade them from utilizing their paid time off.

Adjust Payroll Systems

Since the CFLA is funded through payroll premiums, you may need to make some adjustments. Make sure your payroll software or service is configured to process paid leave accurately and timely. You may deduct up to 50% of premiums from employee wages, so speak to your accountant about your eligibility and how the process can work for your business.

Implement Tracking Mechanisms

Develop a system for tracking employee leave balances and usage. This will help you manage leave requests efficiently and ensure employees do not exceed their allotted leave.

Under ideal circumstances, you can encourage employees to take their leave at times that won’t leave you too shorthanded to be productive. Since the CFLA is designed to address emergencies, it may not always be possible to do so. Have a plan in place for situations where leave by multiple employees may overlap in a way that hinders productivity.

Provide Training to Your HR Team

Offer CFLA compliance training for HR managers to ensure they understand the new regulations and how to implement them. This training should cover the application process, leave administration, and handling potential disputes or issues.

Are There Penalties for Failing To Comply With the Colorado Family Leave Act?

Yes, there are penalties for non-compliance with the Colorado Family Leave Act. Employers who fail to adhere to the CFLA requirements may face several consequences:

Financial Penalties

Employers can be fined for failing to provide paid leave or not following proper procedures. These fines can vary depending on the nature and extent of the violation.

Legal Action

Employees who believe their rights under the CFLA have been violated may file complaints with the Colorado Department of Labor and Employment. In many cases, employees with a valid rights violation claim may be eligible to file a lawsuit.

Employers must fully understand and implement the CFLA requirements to avoid expensive penalties that may damage their relationship with their workforce. Regularly reviewing and updating your compliance practices can mitigate risk.

How To Create a Compliance Plan for the Colorado Family Leave Act

Compliance is a serious concern for businesses of every size. Violations can be expensive and overwhelm small to medium businesses, which must be mindful of their budgets.

Review and Revise Policies

Conduct a thorough review of your current leave policies and update them to align with CFLA requirements. Ensure all documentation, such as employee handbooks and leave request forms, reflects the new provisions.

Develop a Clear Implementation Strategy

Create a detailed plan for rolling out the new leave policy. This should include timelines, responsible parties, and steps for communicating changes to employees.

Set Up Compliance Checks

Establish regular audits of your leave practices to ensure ongoing compliance with the CFLA. This can help identify and address potential issues before they become significant problems.

Consult With Legal and HR Experts

Consult with legal and HR professionals to ensure your compliance plan meets all legal requirements. They can guide you on more complex issues and help you resolve any conflicts or challenges.

Build a Workplace Culture Around Family and Balance

Encourage a workplace culture that supports work-life balance and values employee well-being. A positive environment will help employees feel comfortable taking the leave they need and use the benefits effectively.

Monitor and Adapt

Stay informed about updates or changes to the CFLA and adjust your compliance plan as needed. Regularly monitor how the new policy affects your organization and make improvements based on feedback and operational needs.

Stay Compliant With Mosey

The Colorado Family Leave Act marks a significant shift in family leave policy, providing paid leave to a broad range of employees across the state.

Compliance may be challenging for smaller organizations, but it’s worth the benefits that work-life balance will bring to your workplace. Thriving employees mean a thriving organization.

For employers and HR professionals, this new law will be key to maintaining a supportive and legally compliant business. By updating their policies, educating employees, and implementing a compliance plan, companies can master the requirements and contribute to a positive work environment that values family support.

Mosey’s compliance management platform is designed to help employers and HR teams track and maintain compliance with state-level requirements. Let us help you stay on track with the Colorado Family Leave Act. Book a demo with Mosey to learn how we can simplify compliance today.

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