LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6202 NOTE PREPARED: Nov 1, 2024
BILL NUMBER: SB 115 BILL AMENDED:
SUBJECT: Paid Family and Medical Leave Program.
FIRST AUTHOR: Sen. Pol BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill requires the Department of Workforce Development (DWD) to establish
a Paid Family and Medical Leave Program (program) to provide payments for employees who take family
and medical leave. It establishes the Family and Medical Leave Fund to be funded with appropriations from
the General Assembly and payroll contributions. The bill specifies requirements for the administration of
the program. It provides for the DWD to approve an employer's use of a private plan to meet the program
obligations.
Effective Date: July 1, 2025.
Explanation of State Expenditures: DWD and the Paid Family and Medical Leave Program: The bill’s
requirement to establish and administer the Paid Family and Medical Leave Program represents significant
additional workload and expenditures on DWD outside of the agency’s routine administrative functions, both
during the start-up phase and going forward.
The program would be funded by employer contributions and General Fund appropriations. The bill does
not make an appropriation. The bill states that the costs of administering the Paid Family and Medical Leave
Program would come from the Paid Family and Medical Leave Program Fund. Additional funding for the
program would likely be needed to fund start-up costs.
To administer this new program, DWD would need a significant number of additional staff, funding, and a
computer system to implement, administer, and report on the Paid Family and Medical Leave Program. Since
the program uses different definitions for employers and employees than are used in the unemployment
insurance system, the agency would have to create a separate administrative structure for this program.
Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on
legislative and administrative actions.
The state of Colorado has a paid family and medical leave program similar to this proposal which became
law in 2020. Employers began payroll contributions for the program in January 2023, and employees can take
the paid leave beginning in January 2024. Administrative expenses for the program totaled $2.9 M in FY
SB 115 1 2022, $23.3 M in FY 2023, and $62.7 M in FY 2024.
The State as an Employer: If the state participates in the program as an employer, agencies would be required
to make contributions based on their employees’ annual wages beginning in CY 2027. Employers are
required either to participate or provide equivalent benefits under a private plan. Employer contributions to
the fund are capped at 0.7% of an employee’s yearly wages, and will be set annually by DWD at a rate
sufficient to fund program benefits. If the rate were set at 0.7%, the state as an employer could pay
approximately $15.5 M annually in contributions, and could pass on to employees up to half of that cost ($7.7
M). The bill may require the State Personnel Department to make changes to the employee leave policy and
requires employers to provide notice of the program to all employees. [This bill has the potential to impact
all agencies as employers, thus impacting all funds that provide operating funds to agency staff.]
Currently, state employees are eligible for up to four weeks of paid new parent leave, short and long-term
disability (available after 30 days away from work), and earn up to nine sick days annually. It is unknown
how the state or other employers may change their leave policies as a result of this program.
Civil Rights Commission: The Civil Rights Commission is responsible to enforce the section of the bill
related to incidents of discrimination or violation by employers. The bill does not state whether the
Commission could use the same administrative and legal enforcement procedures that they use when
enforcing Indiana’s civil rights laws. Depending on how their enforcement responsibilities are interpreted,
additional funds, staffing, and resources may be required. Ultimately, the source of funds and resources
required to satisfy the requirements of this bill will depend on legislative and administrative actions.
Additional Information - Benefit payments would be available for eligible individuals beginning July 1, 2027.
Weekly benefits would vary depending on employee wages up to a maximum payment equal to the average
state weekly wage for up to 12 weeks per year. Employer leave, paid at the same or higher rate than the
program benefit, would count against the amount of leave an employee has available under this program. An
employer may use a private plan to award benefits if it provides the same rights, protections, and benefits
as the Family and Medical Leave Program. Individuals would be eligible for program benefits if they earn
at least $6,300, or if they are self-employed and opt in to the program.
Under the bill, the maximum weekly program benefit payment is equal to the state average weekly wage
which would be determined by DWD. Individuals who take leave under the program who earn 50% of the
state average weekly wage or below would receive program payments equal to 90% of their weekly wage.
Those earning more than 50% of the state average weekly wage would receive 90% of half of the state
average weekly wage plus 50% of any weekly wages above 50% of the state average weekly wage.
Based on research on FMLA usage prepared for the U.S. Department of Labor, 15% of U.S. employees
reported taking leave for a qualifying FMLA reason during 2018. The average FMLA leave for that year was
28 days.
Explanation of State Revenues: Family and Medical Leave Fund: Employer contributions would be paid
into the Family and Medical Leave Fund, established by this bill beginning in CY 2027. The fund will consist
of appropriations and payroll contributions and will be administered by the DWD. The expenses of
administering the fund are paid from the fund. Money in the fund at the end of the fiscal year does not revert
to the General Fund.
Explanation of Local Expenditures: Local Units as Employers: Beginning in CY 2027, local units would
SB 115 2 be required to make contributions up to 0.7% of their employees’ annual wages or provide a comparable paid
leave plan to their employees.
Explanation of Local Revenues:
State Agencies Affected: Department of Workforce Development; Civil Rights Commission; State
Personnel Department; All agencies as employers.
Local Agencies Affected: All units as employers.
Information Sources: Colorado Information Marketplace. Transparency Online Project - State Government
Revenue and Expenditures in Colorado, https://data.colorado.gov/stories/s/fjyf-bdat; Colorado Family and
Medical Leave Insurance Program (FAMLI). https://famli.colorado.gov/; November 2023-October 2024 State
Staffing Reports; Abt Associates. (2020, July). Employee and Worksite Perspectives of the Family and
Medical Leave Act: Executive Summary for Results from the 2018 Surveys.
https://www.dol.gov/sites/dolgov/files/OASP/evaluation/pdf/WHD_FMLA2018SurveyResults_Executiv
eSummary_Aug2020.pdf
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 115 3