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ORDINANCE NO. 10284
AN ORDINANCE DECLINING EMPLOYER PARTICIPATION
IN THE PAID FAMILY AND MEDICAL LEAVE INSURANCE
(FAMLI) PROGRAM AND ACT CREATED AND CODIFIED
AT PART 5, ARTICLE 13.3, TITLE 8 OF THE COLORADO
REVISED STATUTES
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Pursuant to §8-13.3-522, C.R.S., and Colo. Const. Art. 20, §6, City Council
hereby approves and authorizes the City to decline and votes to decline employer
participation in the Paid Family and Medical Leave Insurance Program and Act created
and codified at Part 5, Article 13.3, Title 8 of the Colorado Revised Statutes.
SECTION 2.
City Council further authorizes the City to assist City employees who want to
individually participate in the Paid Family and Medical Leave Insurance Program
including but not limited to facilitating voluntary payroll deductions, remitting the
employee share of the premium and submitting wage data once a quarter to the
Colorado Division of Family and Medical Leave Insurance.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts
consistent with the intent of this Ordinance to implement the policies and procedures
described herein. The Mayor is specifically authorized to perform all acts required to
implement this vote to decline employer participation including but not limited to execution
and submission of notification of such vote to the Division of Family and Medical
Insurance of the State of Colorado.
SECTION 4.
This Ordinance shall become effective on the date of final action by the Mayor and
City Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on September 12, 2022.
Final adoption of Ordinance by City Council on September 26, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on September 28, 2022 .
□ Disapproved on based on the following objections:
_
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
City Clerk
City Clerk’s Office Item # R-14
BACKGROUND PAPER FOR PROPOSED
ORDINANCE
COUNCIL MEETING DATE: September 12, 2022
TO: President Heather M. Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Marisa Pacheco, Human Resources Director
Deputy City Attorney, Bob Jagger
SUBJECT: AN ORDINANCE DECLINING EMPLOYER PARTICIPATION IN THE PAID
FAMILY AND MEDICAL LEAVE INSURANCE (FAMLI) PROGRAM AND ACT
CREATED AND CODIFIED AT PART 5, ARTICLE 13.3, TITLE 8 OF THE
COLORADO REVISED STATUTES
SUMMARY:
Pursuant to §8-13.3-522, C.R.S., and Colorado Constitution Article. 20, §6, certain employers, to
include local governments have the ability to decline employer participation in a new paid leave
social insurance program known as the Family Medical Leave Insurance (FAMLI) program. City
Council approval is requested for the City of Pueblo to opt out of employer participation in the
program.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
In November of 2020, Colorado voters passed Proposition 118 which establishes a new state
leave program which will provide paid leave for employees who have a need to take leave for
specific reasons to include; caring for a new child during the first year after birth or adoption, or
for foster care of a new child; caring for their own serious health condition; caring for a family
member with a serious health condition; relating to activities of family member who is on active
duty-military service or is called for active-duty military service; and when the individual or the
individual’s family member is a victim of domestic violence, stalking or sexual assault of abuse.
The Colorado FAMLI insurance program will provide up to 12 weeks of paid leave. Employees
will receive no more than 90% of their base pay under the program for the period of leave and no
more than $1,100 per week in benefit.
The majority of employers and employees in Colorado will be required to participate in this
program. The pay continuation benefit associated with FAMLI will be funded by the employer
and the employee through mandatory remission of quarterly premiums beginning in 2023. The
amount of premium is based on Medicare taxable payroll earnings in the amount of .9% of payroll
with the cost shared equally between employers and employees with the employer contributing
.45% and the employee paying .45%. No plan benefits will be paid to employees under the
program until 2024. For 2023 and 2024, the premium contribution is set at .9% of payroll however
is subject to increases beyond that as determined by the Colorado Division of Family and Medical
Leave Insurance.
In order to avoid prohibitions with respect to unfunded mandates and for other policy reasons,
local governments were authorized to decline participation in FAMLI, or “opt out,” subject to the
regulation and process promulgated by the Colorado Division of Family and Medical Leave
Insurance. This exception was limited to a city, city and county, city, town, whether home rule or
statutory, school district, special district authority or any political subdivision of the state. If a local
government does not take specific action (governing body vote) to opt out of the program before
December 1, 2022, participation in the program will be mandatory.
It is City Administration’s recommendation to opt out of the FAMLI program. While this relieves
the City of paying premiums, this ordinance if approved, will preserve an individual employee’s
decision to participate in the program. The City will agree to assist City employees who want to
individually participate in FAMLI by facilitating voluntary payroll deductions, remitting the
employee share of the premium and submitting wage data reports as required to the Colorado
Division of Family and Medical Leave Insurance.
FINANCIAL IMPLICATIONS:
If the City of Pueblo does not op out, using the full year of 2021 payroll as an example, the City
would be required to pay approximately $236,031 in annual premiums beginning in 2023. If this
ordinance is approved, this cost can be avoided by the City.
BOARD/COMMISSION RECOMMENDATION:
Not Applicable.
STAKEHOLDER PROCESS:
At the City Council Work Session on May 16, 2022, City Council requested that staff gather
feedback from the affected City labor unions with respect to the City’s recommendation to opt out
of FAMLI. The presidents of the International Association of Firefighters Local #3, International
Brotherhood of Police Officers #537 and the Pueblo Association of Government Employees were
provided information about the program. All three bargaining units agreed with the City’s
recommendation to opt out of the program as long as their individual members’ rights to voluntarily
participate in the program are retained, which this ordinance accomplishes.
ALTERNATIVES:
If the opt out is not approved, then the City will remain enrolled in the FAMLI program and
premiums must be paid by both the employer and the employees beginning first quarter 2023.
RECOMMENDATION:
Approval of the Ordinance.