It’s crucial to understand and implement family leave benefits to foster a positive workplace culture and attract top talent. In Colorado, that includes the Family and Medical Leave Insurance (FAMLI) Program as well as key regulations, benefits and best practices.

Colorado voters approved Proposition 118 in 2020, paving the way for the FAMLI Program. FAMLI supports employees and businesses alike by protecting and supporting them when certain life events occur.

The state-run program provides partial wage replacement for eligible employees on leave. Payments are funded through employee deductions and, in select cases, some employer matches. Approved employees can receive up to 90 percent of their average weekly wages with some caps and restrictions. Think of it as unemployment pay. But the employees are employed, just out of work for a qualifying event.

FAMLI is available to all Colorado employees regardless of the size of their employers. To qualify, employees must contribute to the FAMLI fund for a certain period, typically earning a minimum of $2,500 in wages during the highest-earning quarter of the base period. FAMLI covers a wide range of events, including bonding with new children, caring for family members with serious health conditions, employees’ serious health conditions and certain military related events.

Communication around leaves of absences with FAMLI is critical for employers to continue to run their businesses smoothly. Clearly communicate family leave policies to employees during onboarding and regularly update them on changes. Provide written policies and make them easily accessible — in handbooks, for example. With open lines of communication, planned absences can be discussed before leave and arrangements can be made for businesses to operate as normally as possible. Staying connected with employees while they’re on leave helps plan for their return.

When it comes to coordinating FAMLI leave benefits with employer-provided paid time off (PTO) or vacation time, employers can’t require employees to use PTO before or during FAMLI leave. However, an employee may voluntarily choose to use PTO before taking FAMLI leave. Employers and employees can mutually agree to use accrued PTO to “top off” FAMLI benefit payments, allowing employees to receive full wage replacement while on leave. Such an agreement must be documented in writing. If PTO is used to supplement FAMLI leave, the total amount paid from both sources may not exceed the employee’s average weekly wage.

Employers must remain informed about changes in state and federal family leave laws to ensure compliance. Signing up for FAMLI update emails offers a good way to keep up with regulatory changes. The website at https://famli.colorado.gov/employers provides a wealth of information and answers frequently asked questions.

Employers should train management staff on the proper administration of family leave policies. Remind managers it’s not their responsibility to tell employees their leave will be approved or make any guarantees. Employees should be directed to the state to answer their questions.

While employees are out on FAMLI leave, employers must maintain employees’ health care benefits. Employees are still required to pay premiums for health care benefits during leave. Employers can ask that premium payments be made directly to them during this time, a repayment agreement can be put into place or deductions can be taken from wages — such as PTO top off payments.

Employees may not collect workers’ compensation or unemployment benefits at the same time as FAMLI benefits.

It’s essential for Colorado employers to effectively manage family leave benefits to maintain a supportive work environment and attract top talent. By understanding the FAMLI Program, employers can contribute to the well-being of their employees while complying with state regulations. Open communication, compliance diligence and a commitment to employee well-being will foster a positive and inclusive workplace culture.

With paid leave for FAMLI now available, employers and employees could have questions about the program. Reach out to a trusted human resource professional or lawyer for help to better understand FAMLI.