Effective Jan. 1, 2021, the Colorado Healthy Families & Workplaces Act (HFWA) requires employers with 16 or more employees to offer Paid Sick Leave (PSL).
The Act requires Colorado employers to provide 1 hour of paid leave for every 30 hours worked, up to a maximum of 48 hours per year, beginning on an employee’s first day of employment.
Example: An employee working 150 hours/month (35 hours/week) gains just over 1 hour leave every week, which totals 5 hours per month and reaches the max. 48 hours after approx. 9 ½ months. But, an employee working 20 hours/week gains 1 hour of leave every 1 ½ weeks —reaching 32 hours by the end of the year (assuming 48 workweeks, by excluding holidays and unpaid time off).
Overtime-exempt employees gain leave as if they work 40 hours per week, even if they work more. Non-exempt employees gain paid leave for each hour worked, overtime or not.
Leave must be paid at the same hourly rate or salary and with the same benefits the employee normally earns during hours worked.
The leave must be paid at the employee’s regular hourly or salaried rate, or minimum wage, whichever is greater.
If your policies already comply with HFWA, or offer more sick leave or PTO than what’s required, great! Just be certain your policy meets the availability and use requirements, which we’ll discuss in more detail next.