TABOR in Focus: Paid Family Leave Premiums Upheld in Chronos Case

Chronos Builders, LLC v. Department of Labor and Employment challenged premiums collected under Colorado’s Paid Family and Medical Leave Insurance Act, arguing that the premiums constituted an unconstitutional tax under TABOR.

The Colorado Supreme Court affirmed the lower court and concluded that the premiums were fees rather than income taxes. Because the program’s charges were dedicated to funding specific paid-leave benefits and the challenged provision of TABOR applies to income tax laws, the court rejected the constitutional challenge. The ruling clarifies the distinction between taxes and program-specific fees.

Original article:https://www.whitcomblawpc.com/business-law-blog/tabor-in-focus-paid-family-leave-premiums-upheld-in-chronos-case