On November 1, 2022, the Division of Family and Medical Leave Insurance (FAMLI) adopted final rules that employers must follow if they wish to offer a private plan under Colorado’s Paid FAMLI Act. As an alternative to contributing to a state plan, an employer may establish a private plan through the purchase of insurance as described below.
An employer’s private plans must provide the same rights, protections, and benefits as the FAMLI program and must be offered to all individuals employed by the employer. An employer must submit a complete application to the Division and obtain approval prior to implementation of the pirate plan. Employers planning to offer a private plan must continue to pay FAMLI premiums until the Division has reviewed and approved the private plan. The application must include proof of purchase of the private plan along with the non-refundable $500 administrative fee. Employers will use the My FAMLI+ Employer portal to submit their private plan application. If employers do not see their carrier listed in the portal, that means the insurance carrier hasn’t received final approval from the state.
Approved private plans must take effect no earlier than 60 days after the application date to allow the Division time to review the application. Private plan approvals are good for eight years subject to renewal. The employer must annually submit an attestation to the Division that the contract information is accurate, and the approved private plan continues to satisfy the requirements of the FAMLI Act and its implementing regulations. Those employers who secure an approved private plan effective on or before January 1, 2024, may apply for a refund of paid 2023 premiums, minus the administrative fee. The deadline to submit a private plan application in order to receive a refund for 2023 premium payments is October 31, 2023.
Once approval is received from the Division, employers are required to notify their employees of their decision to use a private plan instead of the state plan no less than 30 days before the effective date of the approved plan. This must be a written notice and may be delivered to employees electronically, in person, or via email.