COLORADO – 2024 UPDATES AND REMINDERS

Denver and Colorado’s 2024 Minimum Wage – $18.29 and $14.42 Per Hour, Respectively

The minimum wage for employees (not including tipped employees) in Denver will be just under 25% higher than the rest of the state. On January 1, 2024, Denver’s minimum wage will increase by one dollar, from $17.29 to $18.29 per hour (almost a 5.8% increase). The rest of the state will increase from $13.65 in 2023 to $14.42 per hour as of January 1, 2024 (just over a 5.6% increase). Both Denver’s and Colorado’s 2024 increases are based on the Consumer Price Index.

Remember Plastics bags at the point of sale are generally banned January 1st -

See below for our compliance notes:

CWPMA: Compliance Guide – January 1^st, 2024 – Full statewide ban at Point of Sale - single use plastic bags and more

Beginning January 1^st, 2024, in Colorado, stores are prohibited from providing single-use plastic carry out bags to customers as well as a statewide ban on the use of Polystyrene/Styrofoam as a takeout container for ready to eat food.  As this mandate goes fully into effect, CWPMA would like to give our members a guide to help marketers comply.

As you all know since January 1^st, 2023, our members and most all retail stores have had to start to collect the 10 cents per bag fee. For many of our stores/marketers starting January 1^st, 2024, you will no longer be able to provide single use plastic carryout bags to customers at the point of sale. There are some exceptions that are listed below.  Instead, you can either provide/sell reusable bags.

Over this first year of collecting the fee there have been some issues that our marketers brought up to the state, especially as it pertains to remitting the fee/tax. The Carryout Bag Fee is collected by stores and remitted to the finance department or division equivalent agency of the municipality within which the store is located. The issue was that there are localities that never set up a process to remit the fee/tax and never intend to. This past session CWPMA asked for passage of HB23-1285 Store Use of Carryout Bags & Sustainable Products to address this issue. HB23-1285 clarified that if a store’s municipality or county has not established a process to accept the fees, the bill allows stores to retain the fees and use the revenue to purchase reusable bags or for recycling, composting, or waste diversion programs.  

So, starting January 1^st, 2024 The state has limited option for customers to, recycled paper or reusable bags.  An important point here is that the state didn’t really want to be involved in the fee process so there is not really enforcement at the state level.  However, some municipalities such as Denver and communities in Summit have their own ordinances that are more restrictive.

Here are some FAQ’s that we are getting from our members:

1. What are the Exceptions on single use bags?
2. The exceptions are for small stores that operate solely in Colorado and have 3 or fewer locations may provide single-use plastic carryout bags.  However, you cannot be operating as part of a franchisee agreement.  (Again, a locality may be more restrictive)
3. The prohibition also doesn’t apply to inventory purchased before January 1, 2024 but in stock inventory must be used on or before June 1^st, 2024.
   • The inventory provision includes Polystyrene/Styrofoam as well.
4. You can still use single use plastic/paper bags for packaging loose or bulk items, such as fruits, vegetables, nuts, grains, candy, or greeting cards, nails bolts, screws, or other small hardware items, live insects, fish, crustaceans, mollusks, or other small species; and bulk seed, bulk livestock feed, or bulk pet food.
5. You can use single use plastic/paper bags to carry unwrapped prepared foods or baked goods
6.  Also, for use to contain or wrap frozen foods, meat, seafood, fish, flowers, potted plants, or other items that, if they were to come in contact with other items, could dampen or contaminate the other items are still permissible again under state law.
7. The law doesn’t apply to people on government assistance “DOES NOT APPLY TO A CUSTOMER THAT PROVIDES EVIDENCE TO THE STORE THAT THE CUSTOMER IS A PARTICIPANT IN A FEDERAL OR STATE FOOD ASSISTANCE PROGRAM.” 
   • What happens when someone in line complains that a person was allowed a bag and they are not am I subject to discrimination? No – simply explain that the state chose to treat people on government assistance differently.
8. There are no provisions for relief for seniors or people with disabilities unless otherwise provided above.

2. What does the expanded Polystyrene/Styrofoam ban mean:
3. The Polystyrene/Styrofoam ban applies to all retail food establishments in Colorado. A retail food establishment is one that prepares or packages food for humans and provides the food to people either directly or through a delivery service. The food can be eaten on or off the premises of the food establishment. Retailers that only sell prepackaged food that they purchase from a third party and sell in its original package are exempt.
4. "EXPANDED POLYSTYRENE" MEANS BLOWN POLYSTYRENE, COMMONLY KNOWN AS STYROFOAMTM, AND ANY OTHER EXPANDED OR EXTRUDED FOAM CONSISTING OF THERMOPLASTIC PETROCHEMICAL MATERIALS UTILIZING A STYRENE MONOMER.”
3. What counts as a reusable paper bag or other complaint bag
4. Recycled Paper carryout bag mean that is made from 100% recycled material or other post-consumer content.
5. "REUSABLE CARRYOUT BAG" MEANS A CARRYOUT BAG THAT IS DESIGNED AND MANUFACTURED FOR AT LEAST ONE HUNDRED TWENTY-FIVE USES, CAN CARRY AT LEAST TWENTY-TWO POUNDS OVER A DISTANCE OF ONE HUNDRED SEVENTY-FIVE FEET, HAS STITCHED HANDLES, AND IS MADE OF CLOTH, FIBER, OR OTHER FABRIC OR A RECYCLED MATERIAL SUCH AS POLYETHYLENE TEREPHTHALATE (PET).
4. Do I have to charge the fee effective January 1^st, 2024, on inventory I am cycling through?
5. Yes, and either remit it or retain it depending on the jurisdiction.

5. Since the state isn’t enforcing this what are the penalties?
   • Home rule cities can enforce it/or not enforce it based on a local jurisdiction’s policy or code.
   • Counties as creations of the state have been empowered to assess penalties and which include injunctive relief.
     1. $500 for second violation
     2. $1000 for a third or subsequent violation
     3. Schools don’t have to worry about this

6. The law says that the bag fee does not apply to retail food establishments.  I possess a retail food license… am I exempt?
   • So, the restaurants got themselves exempted out from most of the portion of the legislation outside the Polystyrene/Styrofoam portion. And the law specifically says that grocery stores and convenience stores do not qualify as retail food establishments despite the fact that most of our folks have a retail food establishment license.
     1. What if I have a restaurant and a convenience store at the same premises?  Can I use bags for the restaurant part? We tried to clarify that with the proponents of the legislation and were generally ignored.  So as there are exceptions for prepared food etc… (deli counters etc…) my non- legal advice is make sure that any bags you provide are not at the register at the point of sale on the convenience/grocery general purpose checkout line.

7. Does the law apply at all to general packaging or for orders online?  For example, “Customer placed a 30 item “for pickup order” and I have an employee who aggregates all the items and when the customer pulls up, we bring everything to the car -   are containers and bags prohibited even though the customer never enters the store? Good question – Again something we raised with the proponents and were generally ignored.  My best “non legal direction” is that bill prohibits single use plastic bags at the point of sale – it is unreasonable to try to guess how many containers might be required when taking an online order. There is nothing that prohibits providing reusable bags for a fee as a store policy. Likewise, part of the money you are allowed to retain could be used to offset these costs.   

8. Is there any way politically to get this repealed?
   • No. The original legislation was the work of the behavioral control groups along with the environmental organizations.  While the business trade groups were allowed input - the implementation issues and gray areas are more of a result of groups “that do things to other people” instead of being responsible for actually having to follow the law. So, the best we can do is try to help make this as implementable as possible for our folks.

Additional questions? Please contact Staff at: cwpma@cwpma.org

Resources to look through:

The original enacting legislation: https://leg.colorado.gov/sites/default/files/2021a_1162_signed.pdf

The legislation we asked for to clarify the point of remittance: https://leg.colorado.gov/bills/hb23-1285

https://tax.colorado.gov/carryout-bag-fee

Restaurant brief (courtesy of CRA) - https://corestaurant.org/wp-content/uploads/2023/01/2023-CO-Bag-Fee-and-Bag-Ban-White-Paper_Final.pdf

PDF Version of this Email 

Colorado’s Low-income Energy Assistance Program sees a record-breaking number of applications- For employees and customers struggling with utility bills ( CWPMA note - But hey at least the state will still give a person making 50 million dollars a year a tax credit to buy a E.V. and we have allowing utilities to rate base E.V. infastructure build out. )

DENVER (Dec. 12, 2023) — For the second straight year, Colorado’s Low-income Energy Assistance Program (LEAP) is receiving a record number of applications to start the heating season as the cost of energy and other essentials continue to rise and many Coloradans struggle to pay their bills.

As a federally funded, statewide program, LEAP helps eligible individuals and families pay a portion of winter home heating costs by making a one-time payment directly to the utility company on behalf of each LEAP-eligible household.  Since Nov. 1, more than 65,500 Coloradans have applied for LEAP, a 10% increase over this time last season. This season, eligible families can expect to receive between $200 and $1,000 in energy assistance, depending on the type of heating fuel, income and other determining factors. Applications will be accepted through April 30, 2024.

“Many Coloradans continue to experience a tremendous need for energy assistance,” says Theresa Kullen, LEAP manager. “No one should have to live in a cold home or choose between heating their home and paying for essentials like food and rent. If you think you may be eligible for LEAP, we encourage you to take a few minutes to apply.” 

In addition to applying for LEAP, there are other steps that can be taken to help lower heating bills. Coloradans can ensure their home’s furnace is ready for winter by having it inspected by a professional and changing the furnace filter every three months during the winter. Sealing gaps around doors and windows can also help keep in the heat on cold days. In addition to home heating bill assistance, LEAP recipients may be eligible to receive furnace repair and replacement in heat-related emergencies and weatherization services pending the results of a home energy audit.

To qualify for LEAP, Coloradans may have an income up to 60 percent of the state median income, equating to a household income of less than $71,112 a year for a family of four. Additionally, LEAP recipients must pay home heating costs directly to a utility company or landlord as part of their rent and have at least one U.S. citizen or permanent legal resident of the U.S. living in the household.

To access the LEAP application, visit cdhs.colorado.com/leap. Online applications are processed through the Colorado PEAK system. You can also call the HEAT HELP line at 1-866-HEAT-HELP (1-866-432-8435) to receive an application via mail or email or visit your local county department of human services office to pick up or drop off an application.

FAMLI Benefits for Colorado Employees Start Jan. 1, 2024 – A Few Important Points to Know

POSTED BY: KAREN BOOHER ON DECEMBER 12TH, 2023 (Attributable to J - Kent staffing)

In November of 2020, Colorado voters approved Proposition 118 which paved the way for a state-run Paid Family and Medical Leave Insurance (FAMLI) program. The FAMLI program will ensure all Colorado workers have access to paid leave to take care of themselves or their family during life circumstances that pull them away from their jobs – like growing their family or taking care of a loved one with a serious health condition.

Both employers and employees have been contributing premium payments to FAMLI since January 1, 2023, and FAMLI will start providing benefits to employees beginning January 1, 2024. Most eligible employees will receive up to twelve weeks of leave; those who experience pregnancy or childbirth complications may receive an additional four weeks.

There are many facets to FAMLI and so much for employers to know. A great resource of Employer FAQs can be found at https://famli.colorado.gov/employers/employer-faqs. The following are a few important points for employers to know.

Qualified Uses of FAMLI Leave

Individuals can use FAMLI leave to take time away from work to:

• Care for a new child, including adopted and fostered children.
• Care for themselves, if they have a serious health condition.
• Care for a family member’s serious health condition.
• Make arrangements for a family member’s military deployments.
• Address the immediate safety needs and impact of domestic violence and/or sexual assault.

About the Claims Process

Employers can select to meet their FAMLI obligations through the state system or a private plan. For those employers utilizing the state system, the employee/claimant will start their application for a claim directly in the FAMLI portal at https://famli.colorado.gov.

Once a claim application has been submitted by an employee, the FAMLI Division will let the designated HR Contact for the employer know within 5 business days that a claim has been filed. Notification to the company may be less than 5 days, but this timeframe allows the Division time to review and adjudicate the claim. Good news for employers – it is not the employer’s job to approve or disapprove these requests for FAMLI benefits. This is the responsibility of the state’s FAMLI Division.

How Do Employers Administer FAMLI With Existing Leave/PTO Policies?

Employers cannot require employees to use accrued vacation, sick leave, or other paid time off before or while receiving FAMLI. However, employers and employees can agree that an employee taking FAMLI leave can use accrued paid time off to “top off” their pay to make their benefit payments “whole”. Employees, however, cannot receive more in compensation than their average weekly wage.

Things to Know About Reinstatement of an Employee Following FAMLI Leave

• Employees who take FAMLI Leave are entitled to be restored by the employer to the position they held when the leave started.
• An individual is considered employed on any day they work, on their days off, and during any leave (paid or unpaid) where the employer reasonably believes the individual will return to work.
• An employer is not obligated to reinstate an employee IF an employee’s position is eliminated due to legitimate downsizing or reorganization.
• An employer is not obligated to reinstate an employee IF the employee cannot perform the essential functions of their job any longer following the period of leave.
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Attachments

The following files are available for download

• INFO #1 COMPS Order #39 (2024) 12.8.23 [accessible].pdf