MANAGING COLORADO LEAVE LAWS – PART 2

HR / Workplace

By:  Kim Adamson

Understanding Colorado’s various leave of absence and time off laws is crucial for both employers and employees.  In this month’s two-part series about the diverse leave laws in Colorado, we will address short-term disability, worker’s compensation, other required leave of absence laws, and non-required leave of absence and time off policies a company may offer its employees.  In part one of the article about Managing Colorado’s Leave Laws, we covered the Family Medical Leave Act (FMLA), Family and Medical Leave Insurance (FAMLI), and the Healthy Families Workplace Act (HFWA).  Below is a brief overview of the additional options employers should consider when an employee notifies the employer of a need for a leave of absence:

1.       Short-Term Disability (STD):

Colorado employers are not required to provide short-term disability insurance to employees but may choose to provide STD insurance through a private insurance company.  Contribution options could be traditional where the employer pays the full premium or contributory where both the employer and employee contribute to the benefit cost.

  • STD is an insurance program that provides wage replacement for employees who cannot work due to illness or injury.
  • STD typically covers a temporary period (up to a year) during which an employee cannot perform their job duties due to a health condition. The exact coverage duration depends on the employer’s disability benefits program.
  • Employees may be eligible for STD benefit payments if they experience a sufficiently severe illness or impairment. Most STD programs have a waiting period between the date of an injury or illness and when benefits become available. The typical waiting period is 7, 14, or 30 days.
  • Employees must apply to the employer’s disability carrier and provide the required medical certification from their healthcare provider. Once approved by the disability carrier, the employee receives a portion of their pay during their absence (usually 50% to 70% of weekly earnings, depending on the terms of the disability benefits program).
  • Once STD benefits are exhausted, employers may also have long-term disability (LTD) insurance coverage to replace income until the employee can return to work. Depending on the employer’s LTD insurance program, LTD benefits can last up to two years and can replace 50% to 70% of an employee’s pre-injury earnings. 
  1. Worker’s Compensation Leave:

All businesses with employees operating in Colorado are required to have workers’ compensation insurance, regardless of the number of employees working in the state.

  • Worker’s compensation leave provides benefits to employees who suffer work-related injuries or illnesses.
  • Colorado’s Worker’s Compensation Act requires employers to provide compensation for medical expenses, lost wages, and rehabilitation services to eligible employees.
  • Reporting and Filing Claims: Employers must promptly report workplace injuries and file claims with their insurance carriers and provide necessary information to employees for filing claims.
  • Employers should have return-to-work programs in place to facilitate employees’ transition back to work after recovery.
  • Employers must comply with state regulations to ensure proper handling of worker’s compensation claims. 
  1. Other Types of Required Leave in Colorado:

Colorado employers are required to provide employees with certain other leaved of absence as follows:

  • Jury Duty Leave: Employees are entitled to time off for jury duty without retaliation.  Regular full-time employees, and part-time or temporary employees who have worked for the employer for three or more months, must be paid their regular wages up to $50 per day for the first three days of juror service. An employer may choose to pay more but is not required. Employers do not have to compensate employees for time spent serving as a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts.
  • Voting Leave: Employers must allow employees to take up to two hours paid time off to vote in general elections.  An employer is not required to provide voting leave if the employee has three or more hours available to vote before or after the polls are open Employees must request leave at least one day in advance
  • Military Leave: Colorado employees serving in the U.S. military or National Guard are eligible for unpaid leave up to 15 days per year.  Colorado law complies with the Uniformed Services Employment and Reemployment Rights Act (USERRA), which provides job protection and reemployment rights for employees who serve in the military and can take up to five years off of work to serve and be reinstated into the same position without any discrimination.
  • Voluntary Emergency Responder Leave and Volunteer Firefighter Leave: Employers are required to provide qualified volunteers or volunteer firefighters who are called into service for a disaster responding to an emergency summons are entitled to take up to 15 days unpaid leave per year and job protection for providing volunteer emergency and disaster management services.  The employee must provide proof of being a qualified volunteer and applicable documentation of the date and duration of the employee’s response.
  • Domestic Violence Leave: Colorado law requires companies with 50 or more employees to provide victims of domestic violence or sexual assault to take up to three days of unpaid leave per year for legal proceedings or safety reasons.
  1. Company-Paid Leave or Paid Time Off:

Colorado does not require employers to provide employees with paid time off (PTO). However, many companies offer company-paid leave programs as a common practice to attract and retain talent.  Employers can decide whether to offer PTO and what type of leave it includes. Paid leave programs typically include:

  • Vacation: Employees accrue vacation days that can be used for personal reasons.
  • Sick Leave: These are specifically for illness-related absences. Note that a company’s sick leave policy can satisfy the requirements of Colorado’s Healthy Families Workplace Act (HFWA) if it covers all the same conditions, at the same pay rate, and with no more burdensome requirements than HFWA (i.e., documentation, notice, etc.).
  • Personal Leave: Similar to vacation days but used for personal reasons other than illness.
  • Paid Time Off (PTO): This is a combined pool of leave days that employees can use for any purpose (vacation, illness, personal matters).
  • Bereavement Leave: Time off that an employer may grant to an employee after the death of a loved one to grieve and plan for the funeral or memorial service and attend related events.  The company’s policy will dictate the duration and whether paid or unpaid and can last from a few days to several weeks. Employees can use this time. They may also need time to handle financial and legal matters.
  • Holiday Leave:  While not required by law, most Colorado employers provide employees with paid holidays that follow the state or federal holidays observed.  Offering paid holidays can improve employee morale, reduce burnout, and give employees time to recharge and spend time with family and friends.

Below is a recap of issues employers should consider when an employee advises they have a need for a leave of absence:

  • What paid and/or unpaid leave is the employee eligible for?
  • If multiple leaves apply, should the leaves run concurrently?
  • What company policies apply? Review current policies, processes, and current laws to determine what has changed and update as needed. Communicate and provide written notification of changes to employees.
  • What pay is the employee eligible to receive? Update and notify the company’s payroll department of the employee’s leave and payment details.
  • What documentation must be given to the employee to ensure clear communication about the leave of absence and return-to-work deadlines, any other additional benefits that may apply (e.g., short-term disability or workers’ compensation), and the process and cost for continuing health benefits?
  • What certifications are required from a healthcare provider regarding the leave, the length of leave, and any documentation related to return to work and work restrictions, if any?
  • Employers should have clear policies to address these scenarios and support their employees effectively, which ensures compliance with the laws and fosters a healthy work-life balance and successful workplace. Specific details may vary based on company policies and benefit programs, so working with the Human Resources and benefits departments for information and guidance is essential!

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