Colorado Capitol Report

What the Passed FAMLI Bill Means to Business

What the Passed FAMLI Bill Means to Business

Business leaders understandably may wish to not think about the recently completed, tumultuous session of the Colorado legislature. But one bill, which would have created a $1 billion state-administered program, funded by both workers and employers, to provide partially paid family-and-medical leave (FAMLI), was amended in the closing days to become a study that will lead to a new bill for the 2020 session.

SB-188 “prepares for the implementation of a paid family and medical leave program in the state by completing a thorough analysis if paid family-and-medical leave programs by experts in the field, the established of a “family-and-medical leave implementation task force,” and actuarial and third-party studies.”  Here are the building blocks and timelines of SB-188 that will lead to a new FAMLI bill to be introduced next year in the legislature.

Task Force

The composition of the 13-voting-members of the Task Force and who appoints members will be of great interest to the Colorado Chamber.  By July 1st, Governor Polis and the four majority-party and minority-party leaders will appoint members to the Task Force.  Here are the requirements stated in SB-188 for the members of the Task Force:

  • Three members who are workers or represent “an organization that represents workers’ interests in paid family-and-medical leave, each of whom shall be appointed from a list of at least three names submitted by “a recognized statewide organization that “promotes workers’ rights.”
  • Three members who are private employers “with a range of business size and experience in providing employees with paid family and medical leave, each of whom shall be appointed form a list of at least three names submitted by a recognized statewide organization of employers.”
  • One member who represents “a state policy organization that works on issues of economic opportunity.”
  • One member who is a private insurer with experience in administering temporary disability or family and medical leave benefits.”
  • One member who “represents a state policy organization that works on health advocacy.”
  • One labor economist with “demonstrated research or expertise in studying paid family and medical leave and labor standards . . .”
  • One member “who is a representative of a statewide domestic violence organization.”
  • One member “who is a professional from a recognized institution of higher education and who has expertise in studying paid family and medical leave.”
  • One member who “is a representative of organized labor.”
  • Two non-voting members, one of whom must represent the CDLE.

Governor Polis will appoint one individual.

Each majority Democrat chamber leader—House Speaker KC Becker (Boulder) and Senate President Leroy Garcia (Pueblo)—will appoint four members to the Task Force.

Each minority Republican chamber leader—House Minority Leader Patrick Neville (Castle Rock) and Senate Minority Leader Chris Holbert (Parker) will appoint two individuals.

Finally, the CDLE executive director shall appoint one non-voting member.  The executive director of the Colorado Department of Personnel shall appoint the other non-voting member.

Those who appoint the members are required to do so to “reflect communities of color, rural communities, and historically underutilized businesses . . .”

Tasks and Dates:

By September 1st, the Task Force must have begun to take public comment “regarding the administration and establishment of a paid family and medical leave program in the state.”  The public-comment window will be open for 30 days after that.

By October 1, the Colorado Department of Labor and Employment (CDLE) will have to have provided the Task Force with a “third-party study and paid family and medical leave plan recommendations from experts in the field . . . “

Moreover, the Colorado Department of Health will be required to submit a report “detailing the health benefits related to paid family and medical leave” to the Task Force by October 1st.

The CDLE must “analyze the feasibility of contracting with a third party to administer parts of a paid family and medical leave program for all employees in the state as an alternative to state administration of all aspects of such a program.”

The CDLE must contract with at least three experts in the “field of paid family and medical leave” who will be selected by the Task Force and who will produce a report for the Task Force that recommends the establishment of a FAMI Program.

The Task Force is then required to take public comment “regarding the administration and establishment of a paid family and medical leave program.”

The Task Force must issue its “initial recommendations” by November 1st.  This recommendation will then be provided to an actuary under contract to the CDLE.  The actuary then has until December 1st to submit its analysis to the Task Force.

The Task Force will present its “final recommendation” for a FAMLI program by January 8, 2020 to Governor Polis and the appropriate four legislative committees.  Finally, a bill based on the final recommendation would have to be introduced for consideration by the General Assembly.

If the 2020 FAMLI Bill Becomes Law . . .

SB-188 assumes the following timeline if a 2020 bill version becomes law:

  • The FAMLI Program will be established by July 1, 2020.
  • A “public education and outreach campaign” will begin by January 1, 2022.
  • Employers and workers will begin submitting insurance premium contributions by January 1, 2023.
  • The Program will begin making benefit payments to workers by January 1, 2024.

For More Information

Chamber members with questions/concerns about the SB-188 Task Force may contact Loren Furman, Senior Vice President, State and Federal Relations, at 303.866.9642.

Courts Say Employers Must Report Employee EEO-1 Data … and soon!

On April 25th, 2019, a federal judge ruled that employers with 100+ employees must now comply with rules promulgated by the Obama Administration Department of Labor (DOL) and Equal Employment Opportunity Commission (EEOC) to collect and report employee pay and hours worked based on gender, ethnicity and race by September 30, 2019.  Just a few days later, the Courts also determined that not only are 2018 employee data due, 2017 employee data is due at the same time as well.

 

The EEOC filed the new requirement in the Federal Register on April 29th, giving notice that “Component 1” filings are coming up at the end of this month, and “Component 2” filings will be due this fall.  Wages for these filings will be taken using W-2 forms, Box 1.

Key changes to remember for filing:

  • There are now 12 distinct pay bands for compensation
  • 10 job categories (executives, managers, professionals, technicians, sales workers, administrative support, craft workers, operatives, laborers & service workers)
  • For each pay band, employers must report the number of women & men, job category, race & ethnicity (see the below chart).

Key Dates:

  • EEO-1 Component-1 required to be filed by May 31, 2019.  Component 1 will now collect workforce employment data by race, ethnicity, & gender among 10 job categories.
  • EEO-1 Component-2 required by September 30, 2019. Component 2 will now aggregate pay and hours data among 12 pay bands as well.

To learn more & how to file, click here for the Equal Employment Opportunity Commission Notice & instructions:

Notice of Immediate Reinstatement of Revised EEO-1:
Pay Data Collection for Calendar Years 2017 and 2018

“EEO-1 filers should begin preparing to submit Component 2 data for calendar year 2017, in addition to data for calendar year 2018, by September 30, 2019, in light of the court’s recent decision in National Women’s Law Center, et al., v. Office of Management and Budget, et al., Civil Action No. 17-cv-2458 (D.D.C.).  The EEOC expects to begin collecting EEO-1 Component 2 data for calendar years 2017 and 2018 in mid-July, 2019, and will notify filers of the precise date the survey will open as soon as it is available.
On May 3, 2019, the Department of Justice filed a Notice of Appeal in National Women’s Law Center.  The filing of this Notice of Appeal does not stay the district court orders or alter EEO-1 filers’ obligations to submit Component 2 data. EEO-1 filers should begin preparing to submit Component 2 data as described above.
Filers should continue to use the currently open EEO-1 portal to submit Component 1 data from 2018 by May 31, 2019.”

The Colorado Chamber Celebrates Small Businesses for National Small Business Week

Throughout the week, we celebrated Colorado small businesses for National Small Business Week and highlighted some of our member small businesses on social media. Be sure you’re following the Colorado Chamber on Twitter to stay up to date on the latest news and to learn more about some of the small businesses we featured this week!

The Colorado Chamber of Commerce works to improve the business climate for companies of all sizes and across all industries, and we’re proud to serve many small businesses across the state.

According to the Small Business Administration (SBA), Nearly 98% of all firms in Colorado are considered small, and over 52% of all private sector workers are employed by small businesses. The SBA’s Colorado District office offers many resources and assistance for small businesses. Learn more by clicking here.

Colorado Chamber Executives Recognized at Annual Conference

 

Pictured left to right: Dennis Houston, Parker Area Chamber; Lola Woloch, President & CEO, Southern Colorado Women’s Chamber of Commerce (SCWCC) and winner of the Chief Executive of the Year Award; Lauren Schwartz, Colorado Chamber; and SCWCC board members Chris Carter, Vickie Drew and Barbara Myrick.

The Colorado Chambers of Commerce Executives (CCCE) convened for their annual conference and awards celebration May 1-3 in Denver.

A highlight of the conference is the annual Awards Celebration, in which chamber leaders are recognized by their peers for best practices, noteworthy projects and achievements accomplished the prior calendar year (2018).

This year’s award categories and honorees included:

  • Chief Executive of the Year Award: Lola Woloch, President & CEO, Southern Colorado Women’s Chamber of Commerce
  • Team Member of the Year: Whitney Shank, Director of Events, Castle Rock Chamber of Commerce
  • Excellence in Business Advocacy: Grand Junction Chamber of Commerce
  • Best Idea: Arvada Chamber of Commerce
  • Best Communications Campaign: Collins Chamber of Commerce
  • Highest Increase in Dues Revenue: Aurora Chamber of Commerce
  • Highest Increase in Membership: Vail Valley Partnership

“These awards recognize chamber leaders from across Colorado who work tirelessly to represent the interests of business in communities throughout our state,” said Dave Tabor, SVP Business Partnerships for the Colorado Chamber of Commerce and CCCE board member. “They are first-in-class professionals, and the Colorado Chamber is proud to work alongside these community leaders to champion and protect a robust business environment for Colorado.”