Colorado Family and Medical Leave Insurance Program: What You Should Know

The benefits of the Colorado Family and Medical Leave Insurance (FAMLI) program are available to most private-sector employees including self-employed individuals and independent contractors, providing up to 12 weeks of paid leave for qualified reasons while providing job protection.

The state’s FAMLI program is funded by premiums paid by employees and employers. Employers may choose to split the premium with their employees 50/50 or can cover up to the entire premium.

What Are Employers’ Requirements Under CO FAMLI?

Covered employers in Colorado with 10 or more employees in their workforce nationwide, unless they opt-out and offer a leave plan equal to or greater than FAMLI, have the following requirements:

• Collect 0.45 percent of employee wages
• Match the employee contribution rate of 0.45% (through 2025, as required by Proposition 118). After that, the rate will be set each year, but the combined rate is capped at 1.2%.
• Remit quarterly the employee share and employer share (if applicable) of premium to the fund

It should be noted that employers with fewer than 10 employees are not required to pay the employer share, but they still need to deduct the employee share and remit those contributions.

Since this is a state insurance program, employers are not required to pay wages to an employee who is on approved leave under this program. The state pays a portion of the individual’s normal weekly wages through the fund. Employers are required to continue paying their normal portion of the employee’s health benefits and an employer could require that an employee on leave continue paying their share of the benefits contribution.

Who is Eligible for Colorado Paid Family Leave?

Under Colorado FAMLI, an eligible employee is one who has:

• Earned at least $2,500 in wages within the state in the past four calendar quarter, subject to FAMLI premiums.

What are Reasons for Qualified Leave Under Colorado FAMLI?

Similar to the reason under the federal Family and Medical Leave Eligible Act (FMLA), employees in Colorado can take leave for the following reasons or a combination of these reasons:

• To bond with a new child, including adopted and fostered children 
• To care for a family member with a serious health condition
• To care for their own serious health condition 
• To make arrangements for a family member’s military deployment
• To address immediate safety needs and impact of the employee or an eligible family member who has been the victim of domestic violence and/or sexual assault. 

How Much Leave Do Employees Get Under CO FAMLI?

Most employees are eligible for up to 12 weeks of paid leave under Colorado FAMLI, although women who experience complications during pregnancy or childbirth may get an additional four weeks.

What are Available Benefits Under Colorado FAMLI?

The benefits available to an eligible employee vary depending on the employee’s average weekly wage. Under Colorado FAMLI, employees will receive between 37% and 90% of their wages while on leave. The current amount anyone can receive is capped at $1,100 per week, but that will increase to $1,324.21 for claims filed on or after Jan. 1, 2025.

What If Employer in CO Offers Own Paid Leave Plan?

Some employers might already have an established paid leave plan at work or might want to provide a private plan. If this private plan is at least equal to the public FAMLI plan regarding rights, protections, and benefits, then they might be able to opt-out of the state plan by applying for a private plan approval. 

Employers have the option of requiring their employees to contribute to the private plan, as long as the employee contribution is not greater than what they would have paid into the state plan.

Looking Forward

Employers seeking to find a mix of benefits to help attract and retain talent and assist in helping maintain the well-being of employees can look to Paychex as a resource. We also offer time-tracking solutions and HR Services that can help your business run more smoothly.