Our Alternative Plan for FAMLI

Starting in 2023, our employees may be entitled to a new family leave benefit. A new state law called FAMLI (pronounced family) establishes an insurance-like program that requires all employers and employees to pay into a state fund. By paying into this fund, qualifying employees may be eligible to take paid medical leave. The city can opt-out of the program and offer its own plan which provides better benefits to most city employees and does not require employees to pay into any fund. This alternative plan would entitle employees to eight weeks, or 320 hours, of leave paid for by the city from a bank of hours called a Care bank. The Care bank could be used for a medically qualifying reason for self-care or care of family members. The hours would be available along with Family Medical Leave and would be free for employees.

In order to opt out of the state-run plan and institute this alternative plan, the city must first hold a public hearing and get approval of City Council. To learn more about the alternative plan, watch the Office of Human Resources' recorded town hall from August 1, 2022. 

OHR will host a public hearing at the August 22, 2022 City Council meeting. You are encouraged to attend the hearing and provide City Council with your feedback. Can't attend the meeting? Email City Council your opinion at dencc@denvergov.org.

 

See how the Care Bank and FAMLI compare(PDF, 285KB)

Questions and Answers About the Care Bank

 

What is the Care Bank or Care leave?

Care leave is a paid leave bank available for our employees to take care of themselves or the care of a family member. In order to participate in Care leave, our employees must be eligible for FMLA or other specific circumstances.

What is FMLA?

Family Medical Leave Act. It is a federal law that entitles employees to up to 12 weeks of job-protection to care for themselves or eligible family members. To qualify our employees must have worked 1250 hours and been employed with the city for 12 months prior to the leave request.

 

Who are eligible family members under FMLA?

Eligible family members include an employee's spouse, children and parents. The city intends to expand eligible family members.

How many hours do your employees get in the Care bank?

Up to eight (8) weeks or 320 hours/rolling forward year.  Rolling forward means our employees can use up to 320 hours from their Care bank from the first date of absence up to one year.  After one year, your bank will reload on the anniversary of their FMLA.

Can your employees take both Care leave and FMLA at separately in the same year?

No, Care leave and FMLA will run concurrently.

 

When will Care leave be available for your employees to use?

January 1, 2023

 

Will your employees have to pay a premium for Care leave?

No. Care leave is an employer-sponsored benefit to eligible City and County of Denver employees.

 

Can your employees use Care leave for intermittent and continuous leave?

Yes, Care leave can be used continuously (for a block of time) or intermittently (absences here and there) in 15-minute increments.

 

Will your employees have to use their leave accruals before they can use Care leave?

No, our employees can be paid using Care leave without using their other leave accruals first.

 

How much will your employees be paid for an absence covered by their Care bank?

Our employees will receive 100 percent of their pay for approved absences for Care leave.

What if an employees is on leave when the Care bank becomes available on January 1, 2023?

The employee's Care bank can be applied to absences beginning 1/1/2023 and going forward.

 

What are the qualifying relationships for Care leave?

Eligible family members include your spouse, children and parents. The city intends to expand eligible family members.

 

What are the qualifying reasons an employee can use Care leave?

Physical illness, mental illness, injury, pregnancy, bonding, victims of domestic violence/stalking.

 

If an employee has a baby in November 2022, will they be able to use Care leave on January 1, 2023?

Yes, if they have not exhausted their FMLA entitlement.

 

What happens to an employee's Care hours if they leave the city?

There is no payout for Care hours upon termination.

 

What if an employee would rather receive the benefits offered by the State under FAMLI?

Our employees can voluntarily opt-in to FAMLI, but will not be eligible for Care hours. Continue on to read the FAMLI Q&A more information.

 

Do employees have to apply for both FMLA and the Care bank? Or is Care automatic when someone is approved for FMLA?

Because an employee would have to meet FMLA eligibility, they would need to apply for FMLA.  The Care hours would be applied based on the approved time off until Care hours are exhausted.

Is the Care bank automatically loaded for everyone, or is it only loaded when someone is approved for FMLA/Care?

Since all employees are not be eligible for FMLA, the Care bank would only be initiated with an FMLA approval.

Will the Care bank be available to every city employee?

No, the Care bank will only be available to unlimited and limited civilian employees. Benefits for any collectively bargained groups will be addressed through their respective collective bargaining agreements.

 

Questions and Answers about FAMLI

What is FAMLI?

In November of 2020, Colorado voters approved Proposition 118 which began paving the way to a state-run Paid Family and Medical Leave Insurance (FAMLI) program. The FAMLI program is an insurance-like program that requires all employers and employees to pay into a state fund. By paying into this fund, qualifying employees may be eligible to take up to 12 weeks of paid medical leave.  However, the state program would not benefit all City and County of Denver employees because a significant percentage of our employees’ base salaries exceed the maximum benefit that would be paid by the state FAMLI fund.  Yet, all employees would be required to pay the employee portion of the premium for the FAMLI benefit beginning January 1, 2023.  The ability for anyone to take leave under FAMLI would not begin until January 1, 2024.

FAMLI affects Colorado local government employers differently than private businesses. The statute was written to give local governments the option to participate. The city plans to opt out of the FAMLI program and offer its own city paid leave “Care” program with a better benefit that would be available to most employees. Employees would need to qualify for Family and Medical Leave (FMLA) and the Care program would run concurrently with FMLA. The Care program provides a bank of paid leave hours that could be used to care for self or a family member. Some highlighted features of the Care program include:
  • Eight weeks or 320 hours of paid leave
  • No employee premium
  • Care bank hours available January 1, 2023
  • Care hours paid at 100% salary (No reduced pay)

How do I know if I am eligible for FAMLI leave?

Most Colorado employees become eligible to take paid leave after they have earned at least $2,500 in wages within the State, over a period of a year.

Why is the city able to opt out of FAMLI?

FAMLI affects Colorado local government employers differently than private businesses. The statute was written to give local governments options to participate. Local governments can vote to opt out of FAMLI anytime during 2022.

What if a city employee wants to participate in the State Leave program and not the city's Care bank?

Local government employees who voluntarily want to self-select FAMLI coverage can do so at any time after the city votes to opt out. There is no enrollment period. You will need to register with the FAMLI system after it deploys in the Fall 2022 and you will be responsible for remitting 0.45 percent of the premium and wage data every quarter. Upon voluntarily opting into the program, you are required to commit to participate for at least three years to avoid opting in only when leave is foreseeable.

If a city employee opts into FAMLI and needs to take leave, will their job be protected?

FAMLI offers paid job protected leave once an employee has been at their employer for more than 180 days (about six months). The law also offers protection against retaliation.

If you opt into FAMLI and your leave would have been covered by the city under FMLA, then your FAMLI leave would also be job-protected.  

If your leave is not eligible under FMLA but you have FAMLI and are eligible to take leave, and you have been employed for six (6) months, your job is protected.

If a city employee opts into FAMLI, will the city maintain their benefits?

Local government employers which opt-out of the FAMLI program are not required to maintain health insurance benefits during FAMLI leave for their employees who opt-in to the program. See C.R.S. 8-13.3-509(8).  However, if your leave is covered under FMLA, then the city-paid portion of your benefits would be maintained.

How does a city employee voluntarily enroll in FAMLI?

The employee will need to register with the FAMLI system after it deploys in the Fall 2022 and will be responsible for remitting 0.45 percent of the premium and wage data every quarter. Upon voluntarily opting into the program, the employee is required to commit to participate for at least three years to avoid opting in only when leave is foreseeable.

 

How is the premium paid into FAMLI?

At the employee's request, a payroll deduction from their wages will be made to the State of Colorado every quarter.

 

Can you give an example of how a premium is calculated?

Included as “wages” subject to this payroll tax are salary or hourly wages, commissions, payments on a piecework basis, bonuses, or other forms of compensation (such as board, lodging, or payments in kind). Premiums are capped at the Social Security Wage base, which as of 2022 is $147,000.

For example, an employee with an annual salary of $50,000 would result in an annual premium of $450 (.9% of $50,000), of which the employee and employer would each be responsible for $225.  Total payment per quarter for the employee would be $56.25.

When are FAMLI premium due?

While employees cannot take FAMLI benefits until 2024, premiums are due under the program starting January 1, 2023.

How is the FAMLI program structured?

The program is structured similarly to unemployment insurance, in that the state will pay employees directly when they are on FAMLI leave. Employers are not responsible for paying an employee's salary or wages while they are on FAMLI leave.

Can an employee take FAMLI and FMLA leave separately?

No, the FAMLI benefit is designed to run concurrently with FMLA.

What happens if an employee is receiving Short-Term or Long-Term Disability?

FAMLI benefits will run concurrently with the city's disability insurance.

What is the maximum I can be paid/week under FAMLI?

The maximum benefit under FAMLI is based on the State Average Weekly Wage (SAWW) and the employee’s salary.  The maximum FAMLI benefit is $1,100/week for an annual salary of $91,000 or more.  The weekly FAMLI benefit decreases based on the annual salary.

How long will an employee need to opt into FAMLI?

Once an employee opts in it remains in place for three (3) years.

Questions and Answers about FAMLI

 

What is FAMLI?

In November of 2020, Colorado voters approved Proposition 118 which began paving the way to a state-run Paid Family and Medical Leave Insurance (FAMLI) program. The FAMLI program is an insurance-like program that requires all employers and employees to pay into a state fund. By paying into this fund, qualifying employees may be eligible to take up to 12 weeks of paid medical leave.  However, the state program would not benefit all City and County of Denver employees because a significant percentage of our employees’ base salaries exceed the maximum benefit that would be paid by the state FAMLI fund.  Yet, all employees would be required to pay the employee portion of the premium for the FAMLI benefit beginning January 1, 2023.  The ability for anyone to take leave under FAMLI would not begin until January 1, 2024.

FAMLI affects Colorado local government employers differently than private businesses. The statute was written to give local governments the option to participate. The city plans to opt out of the FAMLI program and offer its own city paid leave “Care” program with a better benefit that would be available to most employees. Employees would need to qualify for Family and Medical Leave (FMLA) and the Care program would run concurrently with FMLA. The Care program provides a bank of paid leave hours that could be used to care for self or a family member. Some highlighted features of the Care program include:
  • Eight weeks or 320 hours of paid leave
  • No employee premium
  • Care bank hours available January 1, 2023
  • Care hours paid at 100% salary (No reduced pay)

How would employees know if they are eligible for FAMLI leave?

Most Colorado employees become eligible to take paid leave after they have earned at least $2,500 in wages within the State, over a period of a year.

Why is the city able to opt out of FAMLI?

FAMLI affects Colorado local government employers differently than private businesses. The statute was written to give local governments options to participate. Local governments can vote to opt out of FAMLI anytime during 2022.

What if your employees want to participate in the State Leave program and not the city's Care bank?

Local government employees who voluntarily want to self-select FAMLI coverage can do so at any time after the city votes to opt out. There is no enrollment period. You will need to register with the FAMLI system after it deploys in the Fall 2022 and you will be responsible for remitting 0.45 percent of the premium and wage data every quarter. Upon voluntarily opting into the program, you are required to commit to participate for at least three years to avoid opting in only when leave is foreseeable.

If a city employee opts into FAMLI and need to take leave, will their job be protected?

FAMLI offers paid job protected leave once an employee has been at their employer for more than 180 days (about six months). The law also offers protection against retaliation.

If a city employee opts into FAMLI and their leave would have been covered by the city under FMLA, then their FAMLI leave would also be job-protected.  

If a city employee's leave is not eligible under FMLA but they have FAMLI and are eligible to take leave, and they have been employed for six (6) months, their job is protected.

If a city employee opts into FAMLI, will the city maintain their benefits?

Local government employers which opt-out of the FAMLI program are not required to maintain health insurance benefits during FAMLI leave for their employees who opt-in to the program. See C.R.S. 8-13.3-509(8).  However, if their leave is covered under FMLA, then the city-paid portion of your benefits would be maintained.

How does a city employee voluntarily enroll in FAMLI?

They will need to register with the FAMLI system after it deploys in the Fall 2022 and will be responsible for remitting 0.45 percent of the premium and wage data every quarter. Upon voluntarily opting into the program, they employee is required to commit to participate for at least three years to avoid opting in only when leave is foreseeable.

 

How is the premium paid into FAMLI?

At the employee's request, a payroll deduction from their wages will be made to the State of Colorado every quarter.

Can you give an example of how a premium is calculated?

Included as “wages” subject to this payroll tax are salary or hourly wages, commissions, payments on a piecework basis, bonuses, or other forms of compensation (such as board, lodging, or payments in kind). Premiums are capped at the Social Security Wage base, which as of 2022 is $147,000.

For example, an employee with an annual salary of $50,000 would result in an annual premium of $450 (.9% of $50,000), of which the employee and employer would each be responsible for $225.  Total payment per quarter for the employee would be $56.25.

When is the FAMLI premium due?

While employees cannot take FAMLI benefits until 2024, premiums are due under the program starting January 1, 2023.

How is the FAMLI program structured?

The program is structured similarly to unemployment insurance, in that the state will pay employees directly when they are on FAMLI leave. Employers are not responsible for paying an employee's salary or wages while they are on FAMLI leave.

Can an employee take FAMLI and FMLA leave separately?

No, the FAMLI benefit is designed to run concurrently with FMLA.

What happens if an employee is receiving Short-Term or Long-Term Disability?

FAMLI benefits will run concurrently with the city's disability insurance.

What is the maximum an employee can be paid/week under FAMLI?

The maximum benefit under FAMLI is based on the State Average Weekly Wage (SAWW) and the employee’s salary.  The maximum FAMLI benefit is $1,100/week for an annual salary of $91,000 or more.  The weekly FAMLI benefit decreases based on the annual salary.

How long do city employees need to opt into FAMLI?

Once an employee opts in it remains in place for three (3) years.