The new rules address the coordination of FAMLI with other benefits and establish penalties for violations.
The Colorado Department of Labor and Employment recently issued rules addressing the coordination of benefits and reimbursement of advance payments under the state family and medical leave insurance program, “FAMLI.” The rules address the interplay between FAMLI benefits and other leave benefits, such as workers’ compensation, unemployment and employer-provided paid leave. Importantly, the rules establish a penalty structure for employer violations. The rules take effect Jan. 1, 2025.
FAMLI
FAMLI was passed in 2020 as a ballot measure. On Jan. 1, 2024, the program, funded by employer and employee contributions, began providing 12 weeks of paid leave per year for employees to:
- Bond with a new child;
- Care for their own serious health condition;
- Care for a family member with a serious health condition;
- Make arrangements for a family member’s military deployment; and
- Address the immediate safety needs and impact of domestic violence and sexual assault
Coordination of Benefits Rules
During the course of the FAMLI rollout, the department has issued sets of regulations addressing different aspects of the program. The new rules for the coordination of benefits set forth the following penalties for specific employer violations:
- $50 per employee per day for violating provisions concerning receipt of FAMLI benefits and employer-provided paid leave;
- $500 per employee per day for failing to maintain health care benefits during FAMLI leave; and
- $500 per violation of provisions about FAMLI benefits, short-term disability benefits, long-term disability benefits, and benefits from a separate bank of time off solely for the purpose of paid family and medical leave.
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