Colorado voters accredited the Paid Medical and Household Go away (PMFL) Initiative, Proposition 118, on Election Day. PMFL creates a state-run paid household and medical depart insurance coverage program in Colorado that enables workers to take as much as 12 weeks of depart and hold their job. This system, which begins on January 1, 2024, is analogous in some ways to unemployment insurance coverage and what exists in California and New Jersey.
PMFL will probably be funded via a 0.9% tax on an worker’s annual pay; nevertheless, the prices could also be shared by the employer and worker evenly. As an example, a Coloradan making $52,000 a 12 months would pay $234 in annual premiums that will be matched by the employer.
Colorado’s Division of Labor and Employment will administer this new insurance coverage program via its newly created Division of Household and Medical Go away Insurance coverage.
Starting January 1, 2024, Colorado permits workers to take as much as 12 weeks of depart and hold their job; nevertheless, as much as 4 extra weeks of paid depart can be found for a severe well being situation associated to being pregnant or childbirth issues.
Eligibility and Causes for Taking Go away
Workers are eligible to take PMFL depart after they:
Have labored a minimum of 180 days; and
Have earned $2,500 in wages that had been topic to PMFL premiums.
Workers could take PMFL depart for the next causes:
Start of a kid or adoption or placement of a kid via foster care;
To take care of a brand new youngster in the course of the first 12 months after delivery;
To take care of a brand new youngster in the course of the first 12 months of adoption or foster placement of the kid;
To take care of a member of the family with a severe well being situation;
The worker has a severe well being situation;
For any qualifying exigency depart (e.g., army service); and
Worker has a necessity for protected depart (e.g., home violence, stalking, or sexual abuse).
Employers Coated and Exempted
Employers with a minimum of 10 workers are coated by PMFL.
PMFL exempts small companies with 9 workers or fewer. Nonetheless, staff of small companies may select to pay premiums and be coated.
Native governments and companies that already present a paid household and medical depart profit just like PMFL could select to decide out.
Interaction with Household and Medical Go away Act, Different Go away
PMFL depart runs concurrently with the depart beneath the federal Household and Medical Go away Act (FMLA). Nonetheless, it will not be congruent, contemplating the PMFL’s extra 4 weeks out there for severe well being circumstances associated to being pregnant and childbirth issues and the truth that workers are eligible for depart after six months of employment, versus 12 months beneath the FMLA.
An employer could require that PMFL depart be taken concurrently with different depart offered beneath the employer’s incapacity depart coverage, however the employer should present written discover of this requirement. Moreover, an worker can’t be required to exhaust accrued trip depart, sick depart, or different paid day without work (PTO) earlier than or whereas receiving PMFL insurance coverage advantages. Nonetheless, an worker and employer could agree to make use of any accrued trip, sick depart, or different PTO whereas receiving PMFL insurance coverage advantages, except the combination quantity exceeds the common weekly wage.
Intermittent Go away
PMFL intermittent depart might be taken in increments of 1 hour or shorter durations, if that’s in line with the increments the employer usually makes use of to measure worker depart taken. Nonetheless, PMFL advantages should not payable till the worker accumulates a minimum of eight hours of advantages.
In calendar 12 months 2023, employers and workers will begin paying into this system. Starting January 1, 2024, workers could start receiving $1,100 every week for as much as 12 weeks whereas taking depart.
Calculation of PMFL Advantages
In 2024, when workers take paid depart beneath the PMFL, the portion of their common weekly wage will probably be paid based mostly on a formulation that gives a higher share of pay to decrease earners. An worker who makes $500 per week, for instance, could be eligible to obtain 90% of their regular wage, whereas an worker who earns $3,000 per week could be entitled solely to 37% of regular compensation.
The utmost annual per-employee premium is estimated to be $1,455 in 2023. The employer is chargeable for paying 100% of the premium, however it might deduct as much as 50% of the quantity from the worker’s wages.
Much like unemployment advantages, the newly created Division of Household and Medical Go away Insurance coverage pays PMFL advantages to eligible workers on a biweekly foundation.
Examples of PMFL advantages:
Most annual profit
P.c of weekly wage
Discover, Posting Requirement
Every employer should put up the PMFL program discover in writing in a outstanding location within the office and notify its workers of this system in writing upon hiring and studying of an worker experiencing an occasion that triggers eligibility. The Division will develop a discover detailing the necessities and advantages of the PMFL for employers to put up.
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