The Department of Labor and Employment in Colorado has failed to comply with accounting and federal requirements in two crucial programs according to the state auditor. Notable “material weaknesses were observed during an annual audit of Colorado state government’s accounting, financial reporting, and compliance in the affairs of Family and Medical Leave Insurance (FAMLI) and Unemployment Insurance. In the list of discrepancies, the department failed to ensure that all employers obligated to register for FAMLI did. It also improperly maintained records of approximately $127 million owed to employers exempted from the program.

Furthermore, the labor department miscalculated the amounts due from employers towards funding unemployment insurance, wrongly assigning rates for about 30,000 businesses. This led to some employers overpaying around $5 million, while others underpaid. These errors apparently violated federal requirements. Reportedly, these issues with unemployment insurance emerged due to poorly implemented changes in a new computer system.

The Labor department has been charged with developing procedures to comply with state regulations; ensuring compliance with FAMLI registration requirements, accurately tracking and rectifying calculation errors, implementing measures so that employers meet correct insurance premiums, rates, and fines; and improving its accounting processes and unemployment insurance system. In response, a spokesperson for the labor department assured that, “The Unemployment Insurance and the Family and Medical Leave Insurance divisions have already taken steps to address the issues outlined by the Office of the State Auditor.

To stay informed about similar problems in the future or if you are directly affected by this, it may be helpful for Colorado residents to know how to contact the labor department. For information on how to contact a live person at EDD California, you can visit eddcaller.com.