State Controller Policy
Effective Date: 01/16/2025
Approved by: Robert Jaros, CPA, MBA, JD, Colorado State Controller
Applicability
This policy applies to state agencies and to their subrecipients through agreements with state agencies.
Background
In 2020, Colorado voters approved the paid Family and Medical Leave Insurance (FAMLI) program, and it was established in law under § 8-13.3-501 et seq., C.R.S.
FAMLI requires the continuation of health benefits during the leave, as noted in § 8-13.3-509, Leave and employment protection:
“(2) During any paid family and medical leave taken pursuant to this part 5, the employer shall maintain any healthcare benefits the covered individual had prior to taking such leave for the duration of the leave as if the covered individual had continued in employment continuously from the date the individual commenced the leave until the date the family and medical leave insurance benefits terminate. The covered individual shall continue to pay the covered individual's share of the cost of health benefits as required prior to the commencement of the leave.”
Policy
- For positions of covered individuals funded with any part of federal funds, agencies shall comply with 2 CFR 200.431(c) which allows state agencies, recipients and subrecipients to utilize state and/or federal funds for continuation of benefits as required by state law as long as they are consistent with benefits attributable to those awards.
- For positions of covered individuals funded with solely with state funds, agencies shall utilize state funds for the continuation of benefits.
- Agencies shall require subrecipients to develop their own policies regarding FAMLI and funding of continuation of health benefits during leave.
FAMLI Benefits Policy FAQs
Question: Since the State is required to continue health benefits for individuals on FAMLI, can our agency use federal funds to pay for benefits?
Answer: Yes. For positions funded with federal funds, the agency may use federal and or state funds and may continue to cover benefits during the leave.
Question: Do the benefits remain at the same funding levels charged to state or federal awards prior to the FAMLI leave?
Answer: Yes. The benefit funding may remain the same as prior to the leave as long as they are consistent.
Question: How does this comply with 2 CFR 200.431?
Answer: Per 2 CFR 200.431(c), benefits are permitted under established written policies. This policy is established for state agencies to comply with that provision. The policy requires state agencies to require subrecipients to include provisions in their own policies and procedures regarding FAMLI and funding of continuation of health benefits during leave.