The Colorado Family and Medical Leave Insurance (FAMLI) program is designed to provide paid leave benefits for eligible employees. However, understanding compliance requirements can be complex. Below, we address some common questions about FAMLI compliance to help business owners, employees, and HR professionals navigate their obligations and rights under the law.

Sole Proprietors and FAMLI: Are They Required to Participate?

The structure of a business—whether an S-corp, C-corp, or another entity—does not determine FAMLI compliance. What matters is whether the business has qualifying employees. If a business has at least one qualifying employee, it must register with the Division of FAMLI, submit wage data, and remit premiums.

A “qualifying employee” is defined as any individual performing labor or services for another, regardless of whether a common-law employer-employee relationship exists. However, individuals are not considered employees under FAMLI if they:

1. Are primarily free from control in performing their work, and
2. Conduct their work as part of an independent profession or trade.

If a person meets these criteria, they are considered self-employed and are not required to register, remit premiums, or submit wage data. They do not need to take any action to opt out of FAMLI.

Can Employers Require Employees to Use PTO Before FAMLI Leave?

No. Employers cannot mandate that employees use their accrued Paid Time Off (PTO) before or during their FAMLI leave. However, employees may voluntarily choose to use PTO before taking FAMLI leave if they prefer.

How Is the FAMLI Premium Split for Businesses with Fewer Than 10 Employees?

For businesses with fewer than 10 full-time employees, the employee is responsible for paying 0.45% of their wages as FAMLI premiums. Once a company reaches 10 full-time employees, the employer must match the employee’s 0.45% contribution, resulting in a total 0.9% premium.

Does Sabbatical Leave Qualify for FMLA?

A sabbatical leave would only qualify for leave under the Family and Medical Leave Act (FMLA) if it meets one of the following criteria:

• The birth of a child or placement of a child for adoption or foster care.
• The care of a child, spouse, or parent with a serious health condition.
• The employee’s own serious health condition preventing them from working.
• A qualifying military-related leave, including:
  • Qualifying exigency leave for family members of deployed servicemembers.
  • Military caregiver leave for employees caring for a servicemember or veteran with a serious injury or illness.
    

Is Leave for Surrogacy Covered Under Colorado FAMLI?

While the FAMLI Act does not specifically mention surrogacy, it does provide leave for "Parental Bonding." This suggests that employees who have a child via surrogacy could be eligible. However, employees should seek confirmation from the Colorado Department of Labor and Employment regarding their specific circumstances.

What Is Considered a Childbirth Complication, and Is a Doctor’s Note Required?

There is no strict definition of a childbirth complication under FAMLI regulations. However, the law does cover pregnancy and recovery from childbirth as eligible medical leave reasons. When applying for medical leave, a licensed health care provider must complete the Serious Health Condition form. The FAMLI Division may request additional information or documentation to process the claim. Employees should discuss their health condition with their doctor and proceed with the FAMLI claim accordingly.

Final Thoughts

Understanding FAMLI compliance is essential for both employers and employees in Colorado. Staying informed about eligibility, contributions, and leave qualifications ensures that businesses meet their obligations while employees can take advantage of the benefits available to them. For specific cases, consulting the Colorado Department of Labor and Employment is always recommended to ensure compliance with state regulations.

Journey Payroll & HR, a COCPA Silver Preferred Partner has a simple yet powerful mission: to put people first. Journey is available to answer all HR and payroll questions from COCPA members. You can find more information about them here. Or reach out directly to COCPA's contact, Nima Mousavisadeh, VP of Colorado Business Engagement, 720-261-9499 or nimam@journeypayroll.com.