Colorado Voters Approve Statewide Paid Household And Medical Depart | Fox Rothschild LLP

On November 3, 2020, Colorado voters approved Colorado Proposition 118, paving the way for a nationwide program of paid family and medical vacations.

Proposal 118 creates a statutory program to grant insured workers in severe health paid leave, bond with a new child, or care for a family member in severe health. In addition, paid vacation is available to employees who need vacation related to a family member’s military service or who need safe vacation related to domestic violence or sexual assault. Employees are entitled to a maximum of 12 weeks, plus an additional four weeks for pregnancy or childbirth complications. Employees receive between 65% and 90% of their wages (up to a maximum of $ 1,100 per week) while on vacation, which is paid from a government fund. The program also provides occupational health and safety and prohibits retaliation against workers on leave. Employees are entitled to paid vacation after they earn $ 2,500 wages and are entitled to health and safety after 180 working days.

For the payment of the program, a premium of 0.9% on the wages of each employee (up to an upper limit) is set, which is divided equally between the employee and the employer (each 0.45% of the employee’s wages). After December 31, 2024, the premium can be increased to 1.2% of the employee’s wage. Employers with fewer than 10 employees are exempt from paying the employer bonus, although their employees are still entitled to contribute the employee’s share of paid vacation under the program. Employers who offer paid family and sick leave at least equal to the state program do not have to pay the premiums and can continue with their existing plans. The premiums will not be collected until January 1, 2023. Employees can claim paid family and sick leave from January 1, 2024.

Proposal 118 also creates a family and sick leave insurance division within the Colorado Department of Labor and Employment to administer the program and establish procedures for enforcing and appealing denied claims and retaliation claims.

With Proposition 118 passed, Colorado becomes the 10th jurisdiction in the United States to establish a paid family and sick leave program. Colorado employers should prepare now to implement the new requirements. Fox Rothschild attorneys will continue to monitor the status of Proposition 118 laws and regulations and will keep employers informed.

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