FAMLI Colorado Employers Guide: Reporting, Rates, and Employee Count

The Family and Medical Leave Insurance (FAMLI) program in Colorado is designed to provide employees with paid leave for family and medical reasons. Employers and HR managers need to thoroughly understand the compliance requirements of FAMLI to strategize for effective leave management policies.

This guide covers the essentials of FAMLI, including reporting requirements, contribution rates, employee considerations, and overall compliance. We’ll share how Mosey can help you stay on top of state compliance.

What Is FAMLI?

The Family and Medical Leave Insurance (FAMLI) program is a state-sponsored initiative that provides paid leave to employees in Colorado for qualifying reasons.

These include:

Family Leave: To care for a family member with a serious health condition.
Medical Leave: For an employee’s own serious health condition.
Parental Leave: Following the birth or adoption of a child.

Additional reasons that FAMLI leave can be requested or extended may meet the criteria specified by FAMLI rules. FAMLI offers financial support to employees who need to take time off for these reasons, ensuring they can manage their personal and family health without sacrificing their income.

What Are the Reporting Requirements for FAMLI?

Accurate and timely reporting is vital for compliance with FAMLI regulations. FAMLI requires employers to stay up to date and maintain thorough records of FAMLI contributions and usage.

Employee Information Reporting

HR departments must report detailed employee information to the Colorado Department of Labor and Employment (CDLE). You must update information if it changes and note all FAMLI leave requests. This is an ongoing compliance requirement that requires significant upkeep.

Employee Names and Contact Information: Ensure that the information is current. If an employee moves or their name changes, FAMLI documentation must reflect that.
Employment Status: Record whether employees are active, on any type of leave, or have terminated their employment.
Leave Requests: Document any leave requests made under FAMLI, including the type of leave and the dates.

Status and leave request data are extremely important to the FAMLI program. These insights show the state how FAMLI is utilized, ultimately helping to shape the program’s future and allowing the Department of Labor and Employment to tailor leave programs to the needs of the state’s workforce.

Contribution Reporting

Employers are required to report their contributions to the FAMLI program. Report contributions on a quarterly basis or as specified by the CDLE. Provide accurate data, including detailed records of the amount contributed based on employee wages.

It’s just as important to closely track contributions for your own financial records. Contribution data proves to the state that you’re meeting FAMLI requirements while also providing your organization with necessary financial planning insights.

Leave Usage Reporting

Track and report the usage of FAMLI leave by employees. Record when an employee’s FAMLI leave begins and ends, and specify whether the leave is for medical, family, or parental reasons. If leave is extended, record the extension.

What Is the FAMLI Contribution Rate?

FAMLI contributions are calculated based on the employee’s gross wages up to a certain wage limit. Ensure that contributions are withheld and reported accurately based on this limit.

As of 2024, the FAMLI contribution rate is 0.9% of an employee’s wages. This rate is split between the employer and employee, with each party contributing 0.45%. Deduct 0.45% from the employee’s wages for FAMLI contributions and contribute an additional 0.45% of the employee’s wages on the employer’s behalf.

Note that FAMLI contribution rates may change in the future. Always refer to MYFAMLI Colorado for up-to-date information regarding mandatory contribution rates.

How Does Employee Count Affect FAMLI?

Employee count plays a significant role in determining FAMLI obligations and compliance. Comprehending how to calculate and report employee numbers is crucial.

For FAMLI purposes, employee count includes the following:

Full-Time Employees: All employees who work a standard number of hours per week.
Part-Time Employees: Employees who work less than the full-time standard but are still counted towards the total headcount.
Temporary Employees: Non-permanent or seasonal employees who work for the company for at least 20 weeks a year.

Make sure your business meets the criteria for FAMLI participation and benefits based on your total employee count.

Certain FAMLI requirements and benefits may depend on the number of employees your business employs. Be aware of exemptions for small businesses — some may have different requirements or exemptions based on employee count.

How To Develop an Onboarding Process for FAMLI

Your onboarding process must inform employees about their rights and responsibilities under state and federal employment laws. Create an onboarding process for new hires that includes information about FAMLI benefits and how they can access leave.

Provide employees with an updated copy of your employee handbook. Include details about FAMLI in the handbook alongside information about other paid and unpaid leave programs. During employee orientation, offer information to explain FAMLI policies and procedures.

How To Integrate FAMLI Into Your Payroll System

Make sure your payroll systems are set up to handle FAMLI contributions and reporting.
If possible, use payroll software to automate the calculation and deduction of FAMLI contributions. If you don’t have payroll software that automates contributions, inform your payroll company or payroll specialist of your current contribution needs.

Most payroll systems can generate reports for contribution tracking and leave usage. If yours can’t, work with your HR staff to develop a system for generating and submitting FAMLI reports.

How To Train HR and Managers on FAMLI Compliance

Provide training for HR professionals and managers on FAMLI regulations and processes. Review key information about compliance requirements, reporting, and contribution calculations.

Your HR team needs proper procedures for managing and approving FAMLI leave requests. Simultaneous FAMLI leave requests may leave you shorthanded, so it’s important to develop a system to balance FAMLI leave requests with other types of leave. This will balance the schedule and optimize productivity when one or more team members are away.

Why Is It Important To Regularly Check for Policy Updates?

Stay informed about changes to FAMLI regulations and update your policies and procedures accordingly. Regularly review and adjust your compliance practices to reflect new requirements.

The State of Colorado collects a wealth of data on FAMLI leave usage. They may use this data to tailor or alter the program, add exemptions, increase or decrease time limits, or modify mandatory contribution amounts. Be prepared to modify your policies to maintain compliance if FAMLI requirements change.

If FAMLI is updated, employers will be given sufficient notice to make changes to accommodate the new demands. It’s best to begin strategizing before new requirements take effect.

What Are the Penalties for Colorado FAMLI Noncompliance?

Non-compliance with Colorado’s FAMLI program can result in several significant penalties for employers. The program mandates specific contribution, reporting, and leave management requirements, and failure to adhere to them can lead to financial and legal repercussions.

Financial Penalties

Employers who do not comply with FAMLI regulations may be subject to fines. These fines can be imposed for various reasons, including late payment of contributions, failure to report accurate information, or not adhering to the required contribution rates. The fines are typically calculated based on the severity and duration of the non-compliance.

If contributions are not paid on time, interest may accrue on the overdue amounts. This additional cost increases your financial burden and underscores the importance of timely payments.

Legal Consequences

Employers found in violation may be subject to compliance audits by the CDLE. These audits can be extensive and require employers to provide detailed records and documentation of their FAMLI contributions and practices.

The CDLE has the authority to take legal action against employers who consistently fail to comply with FAMLI regulations. This could involve formal legal proceedings to recover owed amounts or enforce compliance.

Operational Impact

Finally, non-compliance can damage an organization’s reputation, affecting employee trust and potentially impacting the company’s standing with clients and the public. It may give the impression that an employer lacks empathy for employees and their families when dealing with stressful situations like serious illness.

To avoid these penalties, employers should ensure accurate and timely contributions, adhere to reporting requirements, and maintain compliance with FAMLI regulations. Regularly reviewing and updating internal processes can help mitigate the risk of non-compliance and its associated consequences.

What Are Some FAQs About FAMLI Leave?

Employers new to Colorado or first-time employers based in the state may have questions about implementing or complying with FAMLI. Colorado provides guidance to employers who must comply with FAMLI, so consult a local labor professional for questions regarding unique circumstances or eligibility.

How Should New Hires Be Informed About FAMLI?

FAMLI falls under Colorado employment law. New hires should be informed about FAMLI during orientation and provided with detailed information in the employee handbook. Ensure they understand how FAMLI benefits work and how to apply for leave.

What if an Employee Doesn’t Understand Their FAMLI Benefits?

Provide additional support through one-on-one meetings or additional training sessions to address any questions or concerns. Make sure employees have access to FAQs and contact information for further assistance. Providing links or QR codes to the official FAMLI website will give employees access to vital information about the program.

How Should You Handle FAMLI Leave Requests?

Follow the procedures outlined in your FAMLI policy. Review the leave request, ensure all required documentation is provided, and communicate the approval or denial of the request in a timely manner. Be mindful of how FAMLI leave may interact with leisurely leave, like employee vacation.

Can FAMLI Benefits Be Combined With Other Leave Benefits?

FAMLI benefits can often be used with other leave benefits, such as paid sick leave, FMLA, or short-term disability. Review your company’s leave policies and the requirements of Colorado law to understand how these benefits interact.

Stay Compliant With Mosey

By understanding and implementing these strategies for managing FAMLI, HR professionals can ensure compliance, support employee needs, and contribute to a positive work environment. Effective management of FAMLI helps employees balance their work and personal lives while strengthening the organization’s overall performance and reputation.

Mosey’s compliance management platform helps employers track state-specific business compliance tasks, like FAMLI. Schedule a demo with Mosey to learn how our tools can simplify compliance for your business.

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