If you’re an HR professional or business owner in Colorado, the Family and Medical Leave Insurance (FAMLI) Program that recently became a law in the state impacts your business.
And if you are still a little shaky on the details, here is a breakdown of what this program is and what it means for employees and employers in Colorado:
What is the FAMLI Program?
The state-run insurance program provides paid leave to eligible employees who need time off to care for a new child or a family member with a serious health condition. Remember the federal Family and Medical Leave Act (FMLA)? This program is essentially an expansion of it, as FMLA provides job-protected unpaid leave but doesn’t guarantee pay.
Under the FAMLI Program, eligible employees will receive up to 12 weeks of paid leave to care for a new child, a family member with a serious health condition, or their own serious health condition. In addition, employees now get as much as four weeks of leave for the birth or adoption of a child, on top of the 12 weeks of leave for caregiving.
The program is funded through payroll deductions of 0.9 percent of an employee’s wages, which are split between the employer and employee. Employers remit these funds to the state and must notify their employees about the program.
Who is Eligible for the FAMLI Program?
To qualify, an employee must have earned at least $2,500 in wages in the previous year and be currently employed. The program is available to all employees, regardless of the size of their employer and covers full- and part-time employees.
To be eligible, employees must have worked for their current employer for at least 180 days. New employees might need to wait six months before taking advantage of the program.
How Does the FAMLI Program Benefit Employees?
FAMLI benefits mean job protection, so employees can now take the sick time or newborn bonding time they need without sacrificing their income, which can be a significant burden for many families.
The program also allows employees to focus on caring for their loved ones without worrying about job security. Employees who take leave under the FAMLI Program are guaranteed their job when they return.
How Does the FAMLI Program Benefit Employers?
The program can help attract and retain talented employees who value work-life balance and benefits such as paid leave. It can also help reduce turnover and absenteeism by allowing employees to take needed time off without sacrificing their salaries or job security. This, in turn, can lead to increased productivity and a more engaged workforce.
Furthermore, the FAMLI Program can help level the playing field for small businesses, which may need to offer different benefits than their larger peers. The program ensures that all employees have access to paid leave, regardless of the size of their employer.
Good for Employee and Employer Alike
The FAMLI Program is a significant development that provides benefits to employees and employers in Colorado. The program provides paid leave for employees who need to care for a new child or a family member with a serious health condition while also ensuring job security. Although the program requires a simple payroll deduction, it can benefit employers by attracting and retaining talented employees, reducing turnover and absenteeism, and leveling the playing field for small businesses.
If you’re an HR professional in Colorado, educating yourself and your team on the FAMLI Program can help your company stay competitive in the job market and support your employees’ well-being. Contact Concurrent HRO today to learn more.