October 4, 2022 - Sequoia
by Emerald Law in Compliance
Beginning January 1, 2023, employers with 1 or more employees in OR must begin collecting and remitting premiums for the OR FAMLI Program. In addition, by January 1, 2023, employers must post the model notice at each worksite and provide it electronically or by mail to remote employees in the language the employer usually uses to communicate with employees.
Importantly, employers who want to comply with PFMLI obligations by sponsoring an equivalent private plan in time for the January 1st contribution start date must submit an Equivalent Plan Application or Declaration of Intent by November 30, 2022.
Eligible employees can begin applying for benefits on September 3, 2023. We provide an overview of OR’s FAMLI Program in our prior blog article and highlight key information below.
Benefits: OR FAMLI provides up to 12 weeks of paid leave for family, medical, or safe leave. Eligible employees who experience pregnancy or childbirth complications can receive an additional 2 weeks of paid leave, for a total of 14 weeks of leave. Details on eligible leave and eligible employees are outlined here.
Premiums: Employers must begin collecting and remitting contributions on January 1, 2023, unless they submit an Equivalent Plan Application or Declaration of Intent by November 30, 2022.
Private Equivalent Plan: Employers that offer a private plan that provides equal or greater benefits than those provided under the FAMLI Program can apply for a private plan exemption. Those that receive an approved exemption are not required to contribute (or remit employee contributions) to the Program. To be eligible for the exemption, employers must offer the benefit to all full-time, part-time, seasonal, and temporary employees and the plan cannot cost employees more than the state-run Program. The Oregon Employment Department (OED) has released a checklist which outlines the requirements for a private plan and guidebook on equivalent plans.
Employers who are interested in the private plan exemption can begin applying now (applications were available beginning on September 6, 2022). To receive an exemption for the contributions that begin on January 1, 2023, employers must submit an Equivalent Plan Application by November 30, 2022 or submit a Declaration of Intent by November 30, 2022 and file the application by May 31, 2023. The deadlines for employers to submit an application for effective dates after January 1, 2023 is outlined in Section 471-070-2205(3) of the applicable regulations.
Instructions and resources on equivalent private plans are outlined here. Note the application fee for a new equivalent plan is $250.
| Date/Timing | Item |
| 11/30/22 | Deadline to submit Equivalent Plan Application or Declaration of Intent for an exemption to contributions that begin 1/1/23 |
| 1/1/23 | Employers who do not receive an equivalent plan exemption must begin collecting & remitting FAMLI premiums |
| 9/3/23 | Eligible employees can begin submitting requests for FAMLI leave |
The CO Department of Labor and Employment (DOL) has continued to adopt rules for the upcoming CO state-mandated paid family and medical leave insurance program (“FAMLI” or “Program”). The FAMLI Division of the DOL recently released adopted rules for Benefits and Participation Requirements, which supplements the already adopted rules for Program premiums.
As a reminder, all employers with 1 or more CO employee must begin collecting and remitting premiums on January 1, 2023. Eligible employees can begin applying for benefits under FAMLI on January 1, 2024. We provide an overview of CO’s FAMLI Program in our prior blog article and review key provisions of the Program below.
Benefits: CO FAMLI provides up to 12 weeks of paid leave for family, medical, and safe leave. Eligible employees who experience pregnancy or childbirth complications can receive an additional 4 weeks of paid leave, for a total of 16 weeks of leave. Details on qualifying leave are outlined here.
Premiums: All employers, including those who intend to apply for a “private plan” exemption (outlined below), must begin collecting and remitting contributions on January 1, 2023.
Employers can collect employees’ share of the premium via a payroll deduction. Employers may choose to pay for the entire premium as an added perk for their employees.
Employee count for purposes of employer share of premiums: An employer’s nationwide employee count determines whether they are responsible for the employer share of the premiums (though they will only be responsible for paying premiums of behalf of those localized in CO). When counting total employees, employers must include any individual “performing labor or services for the benefit of another, irrespective of whether the common law relationship of master and servant exists.” “If a person is both primarily free from control in the performance of their work, and that work is a part of their independent profession or trade, then that person is not an employee under the FAMLI Act and payments to them would not be subject to the premiums.” See §8-13.3-503 (7) C.R.S.
Employees/Wages Subject to FAMLI Premiums: An employee’s wages will be subject to FAMLI premiums if:
Private Plans: Employers can satisfy their FAMLI obligations by offering an equivalent private plan that provides equal or greater benefits and protections as provided under the FAMLI Program. The private plan can take the form of an insurance policy or a self-funded plan that is self-funded and self-administered by the employer. Private plans must be approved by the FAMLI Division to satisfy an employer’s obligations.
Though regulations have not been finalized on private plans, on August 31, 2022, the CO Department of Labor and Employment released a webinar on private plans For more on private plans, see the official guidance.
Of important note, CO DOL confirmed that all employers, including those who intend to meet the FAMLI requirements via a private plan, must begin collecting and remitting premiums for the Program beginning January 1, 2023. If, however, an employer receives an approval from the state to sponsor a private plan with an effective date on or before January 1, 2024, they will be eligible for a refund of contributions made.
The FAMLI Division will begin accepting documentation from employers for the private plan exemption in the 1st quarter of 2023. Applications must be submitted by October 31, 2023 for a January 1, 2024 effective date.
| Date/Timing | Item |
| 4th Quarter of 2022 | Soft Launch of My FAMLI+ Employer |
| 1/1/23 | Employers must begin collecting & remitting FAMLI premiums |
| 1st Quarter of 2023 | Employers must complete registration for My FAMLI+ Employer |
| 4/30/23 | 1st quarterly payment and wage reports due |
| 10/31/23 | Deadline to submit application for a private plan for a 1/1/24 effective date |
| 1/1/24 | Eligible employees can begin submitting requests for FAMLI leave |
Generally, California, Connecticut, Hawaii, New Jersey, Rhode Island, and Washington also update paid family and medical leave premium rates, the taxable wage base, and maximum benefits annually, though the 2023 rates have not yet been announced for these states. Employers with employees in these states should keep an eye out for the updated 2023 rates and adjust, as necessary.