Proposition 118 – Paid Family and Medical Leave Insurance Program

Eligible employees who take unpaid leave under the federal Family and Medical Leave Act maintain their employer-provided health care coverage and must be offered the same or an equal position upon returning to work.

Prop 118 would create a state program to provide up to 12 weeks of leave at up to 90% of pay (maximum $1,100/week) for eligible employees beginning in 2024. Beginning in 2023 the state would collect up to 0.90% of a participating employee’s taxable wages with the employee paying at most half of the premium into the program fund. Beginning in 2025, the program director could increase the premium from 0.90% to 1.2%.

Examples and estimates: In 2023 and 2024 an employee would pay at most $4.50 into the fund out of a paycheck of $1000 in taxable wages. In 2023 the annual premium paid by a high-income employee is estimated to top out at $728. The $1,100 maximum weekly benefit in 2024 is estimated to increase to $1253/week in 2025.

The actual benefits paid out are calculated so that those workers making less than the state average weekly wage (SAWW) receive a higher percent of their weekly wage than those making more than the SAWW. The Blue Book uses an estimated 2024 SAWW of $1340 in its model.

All employers must participate in the program unless they
-have 9 or fewer employees
-are self-employed
-are local governments
-already offer approved paid leave
Participating employees must pay the employee portion of the premium even if the employer is not participating. In particular, employers with 9 or fewer employees must collect and remit the employee portion of the premium.

Prop 118 creates an enterprise which clearly falls in the large-size category under Prop 117.

Recommendation: Yes/For

There have been six attempts to pass paid leave in CO, but even with Democrats in control of both houses and the governorship, the majority was unable to pass it. This initiative, Prop 118, is a workaround attempt.

About 2/3 of personal bankruptcies are due to high medical bills or lost wages due to illness or injury. I’d prefer that Prop 118 took on comprehensive health insurance rather than focus on paid leave, but governing involves the art of the possible.

Businesses point out that local governments aren’t required to participate. Businesses also complain about the financial and regulatory burden on employers. Meanwhile, employees will get their say at the ballot box. Nobody is claiming that this bill is perfect, but a handful of other states have implemented paid leave.

Website for the Yes side – Colorado Families First
https://www.voteyeson118.com/

Website for the No side – Protect Colorado’s Recovery
https://votenoon118.com/


Approved Ballot Language

Proposition 118 (STATUTORY)

Shall there be a change to the Colorado Revised Statutes concerning the creation of a paid family and medical leave program in Colorado, and, in connection therewith, authorizing paid family and medical leave for a covered employee who has a serious health condition, is caring for a new child or for a family member with a serious health condition, or has a need for leave related to a family member's military deployment or for safe leave; establishing a maximum of 12 weeks of family and medical leave, with an additional 4 weeks for pregnancy or childbirth complications, with a cap on the weekly benefit amount; requiring job protection for and prohibiting retaliation against an employee who takes paid family and medical leave; allowing a local government to opt out of the program; permitting employees of such a local government and self-employed individuals to participate in the program; exempting employers who offer an approved private paid family and medical leave plan; to pay for the program, requiring a premium of 0.9% of each employee's wages, up to a cap, through December 31, 2024, and as set thereafter, up to 1.2% of each employee's wages, by the director of the division of family and medical leave insurance; authorizing an employer to deduct up to 50% of the premium amount from an employee's wages and requiring the employer to pay the remainder of the premium, with an exemption for employers with fewer than 10 employees; creating the division of family and medical leave insurance as an enterprise within the department of labor and employment to administer the program; and establishing an enforcement and appeals process for retaliation and denied claims?

YES/FOR ____
NO/AGAINST ____

Proposition 118 initiative language filed with the Secretary of State
https://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2019-2020/283Final.pdf