[Editor's note: This section is effective upon proclamation of the governor for the votes cast November 3, 2020.] (1) Employers may apply to the division for approval to meet their obligations under this part 5 through a private plan. In order to be approved, a private plan must confer all of the same rights, protections and benefits provided to employees under this part 5, including, but not limited to:
Allowing family and medical leave insurance benefits to be taken for all purposesspecified in section 8-13.3-504 (2);
Providing family and medical leave insurance benefits to a covered individual forany of the purposes, including multiple purposes in the aggregate, as set forth in section 8-13.3504 (2), for the maximum number of weeks required in section 8-13.3-505 (1) in a benefit year;
Allowing family and medical leave insurance benefits under section 8-13.3-504
(2)(b) to be taken to care for any family member;
Allowing family and medical leave insurance benefits under section 8-13.3-504 (2)(c) to be taken by a covered individual with any serious health condition;
Allowing family and medical leave insurance benefits under section 8-13.3-504
(2)(e) to be taken for any safe leave purposes;
Providing a wage replacement rate for all family and medical leave insurance benefitsof at least the amount required by section 8-13.3-506 (1)(a);
Providing a maximum weekly benefit for all family and medical leave insurancebenefits of at least the amount specified in section 8-13.3-506 (1)(b);
Allowing a covered individual to take intermittent leave as authorized by section 813.3-505 (3);
Imposing no additional conditions or restrictions on family and medical leave insurance benefits, or paid family and medical leave taken in connection therewith, beyond those explicitly authorized by this part 5 or regulations issued pursuant to this part 5;
Allowing any employee covered under the private plan who is eligible for family andmedical leave insurance benefits under this part 5 to receive benefits and take paid family and medical leave under the private plan; and
Providing that the cost to employees covered by a private plan shall not be greaterthan the cost charged to employees under the state plan under section 8-13.3-507.
(2) In order to be approved as meeting an employer's obligations under this part 5, a private plan must also comply with the following provisions:
If the private plan is in the form of self-insurance, the employer must furnish a bondto the state, with some surety company authorized to transact business in the state, in the form, amount, and manner required by the division;
The plan must provide for all eligible employees throughout their period of employment; and
If the plan is in the form of a third party that provides for insurance, the forms of thepolicy must be issued by an insurer approved by the state.
(3) The division shall withdraw approval for a private plan granted under section 8-13.3521 (1) when terms or conditions of the plan have been violated. Causes for plan termination shall include, but not be limited to, the following:
Failure to pay benefits;
Failure to pay benefits timely and in a manner consistent with this part 5;
Failure to maintain an adequate surety bond under section 8-13.3-521 (2)(a);
Misuse of private plan money;
Failure to submit reports or comply with other compliance requirements as requiredby the director by rule; or
Failure to comply with this part 5 or the regulations promulgated pursuant to this part5.
An employee covered by a private plan approved under this section shall retain allapplicable rights under section 8-13.3-509.
A contested determination or denial of family and medical leave insurance benefitsby a private plan is subject to appeal before the division and any court of competent jurisdiction as provided by section 8-13.3-512.
The director, by rule, shall establish a fine structure for employers and entities offering private plans that violate this section, with a maximum fine of $500 per violation. The director shall transfer any fines collected pursuant to this subsection to the state treasurer for deposit into the fund. The director, by rule, shall establish a process for the determination, assessment, and appeal of fines under this subsection.
The director shall annually determine the total amount expended by the division forcosts arising out of the administration of private plans. Each entity offering a private plan pursuant to this section shall reimburse the division for the costs arising out of the private plans in the amount, form, and manner determined by the director by rule. The director shall transfer payments received pursuant to this section to the state treasury for deposit in the fund.
Source: Initiated 2020: Entire part added, Proposition 118, effective upon proclamation of the Governor.
Editor's note: This section was originally numbered as 18-13.3-421 in Proposition 118 but was renumbered on revision for ease of location.