Oregon (OR) Paid Family and Medical Leave Insurance (FAMLI) Program: Contributions Begin 1/1/23
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.
- Employers with 25 or more employees nationwide: Both employers and employees contribute to the Program, with employers contributing 40% and employees contributing 60% of the premium. The contribution rate for 2023 is 1% of gross wages.
- Employers with 24 or less employees nationwide: Employers do not need to contribute to the Program but are still responsible for remitting employees’ 60% share of the premium.
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.
|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|
Colorado (CO) Paid Family and Medical Leave Insurance Program: Contributions Begin 1/1/23
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 with 10 or more employees nationwide: Both employers and employees contribute to the Program and may split the cost 50/50. Premiums are set to 0.9% of employee wages, up to the Social Security wage base, with 0.45% paid by the employer and 0.45% paid by employees.
- Employers with 9 or less employees nationwide: Employers do not need to contribute to the Program but are still responsible for remitting employees’ share of the premium (0.45%).
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:
- The employee’s work is performed in CO;
- The employee performs work both within and outside of CO, but the work performed outside of CO is incidental to the work performed within CO, or is temporary or transitory and consists of isolated transactions; or
- The employee’s work is not primarily localized in any state, but some work is performed in CO and 1 of the following is true:
- The employee’s base of operations is in CO, or if there is no base of operations, the plan from which the employee’s work is directed or controlled in CO; or
- Neither the base of operations nor the place where some part of work is directed/controlled is not in any state in which part of the employee’s work is performed, but the employee’s individual residence is in CO.
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.
|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|
Paid Family and Medical Leave Updates for Other States
- Washington, D.C. (D.C.): As of October 1, 2022, the D.C. PFL Program increased the maximum amount of leave available to up to 12 weeks for parental, family, and medical leave (previously up to 6 weeks for family and medical leave and 8 weeks for parental leave prior to October 1st). In addition, effective July 1, 2022, D.C. PFL reduced the premium rate from 0.62% to 0.26%. See the Universal Paid Leave Amendment Act of 2022.
- New York (NY): For 2023, premiums will be reduced to 0.455% (from 0.511% in 2022). In addition, effective January 1, 2023, the Program will be expanded to allow employees to take leave to care for siblings with a serious health condition. Siblings include biological, adopted, step, and half siblings. For more on the 2023 updates, see this overview.
- Rhode Island (RI): On July 7, 2021, RI Governor McKee signed into law legislation to increase the state’s Temporary Caregiver Insurance (TCI) benefits over the next 2 years. Effective January 1, 2023, RI TCI will provide up to 6 weeks of paid leave (up from 5 weeks).
- Massachusetts (MA): For 2023, premiums will be reduced to 0.63% (from 0.68% in 2022) for employers with 25 or more covered employees and to 0.318% (from 0.344% in 2022) for employers with fewer than 25 covered employees. The 2023 rates are outlined here.
- California (CA): On September 30, 2022, California Governor Newsom signed Senate Bill 951, which increases benefits under California Paid Family Leave (PFL) and Short-term Disability Insurance (SDI). From now through 2024, individuals earning less than $27,000 can receive 70% of their weekly wages under PFL and SDI (these rates were set to expire at the end of 2022). Additionally, beginning January 1, 2025, PFL and SDI benefits for low-wage workers will increase to 90% of their weekly income. The increase in benefits will be funded by removing the payroll tax limit, effective January 1, 2024 (currently, PFL is funded by a 1.1% payroll tax, up to a $145,000 per year).
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.
- Washington, D.C.
- New York
The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.