Colorado FAMLI – Family and Medical Leave Insurance Program
If you’re a business owner with employees in Colorado, it’s essential to understand the state’s Family and Medical Leave Insurance (FAMLI) program. This guide will walk you through what FAMLI is, how it impacts your responsibilities as an employer, and what options you have—including a potential private plan alternative.
Family & Medical Leave Insurance
FAMLI Private
Plan
What Is FAMLI Leave (Colorado Family & Medical Leave Insurance)?
The Colorado Family and Medical Leave Insurance program (FAMLI) is a state-run social insurance initiative designed to provide partial wage replacement to employees who need time off for major life events. This could include caring for a new child, recovering from a serious health condition, or supporting a family member during a medical crisis.
Funded by payroll premiums, FAMLI leave benefits became available to employees starting January 1, 2024, with premiums collected from both employers and employees beginning January 1, 2023. Every Colorado employee contributes through a payroll deduction, and employers with 10 or more employees are also required to contribute a matching share.
Eligible employees can receive up to 12 weeks of paid, job-protected leave per year under this program. An additional 4 weeks are available for pregnancy- or childbirth-related complications. In 2026, an extra 12 weeks will be available to families with infants in the neonatal intensive care unit (NICU), expanding the total possible leave to 24 weeks in specific cases.
Importantly, FAMLI defines “family member” broadly, allowing leave to be taken not only for biological relatives, but also for close relationships equivalent to family, regardless of legal or blood ties.
What Colorado Employers Need to Do Now
If you employ anyone in Colorado, you must comply with the requirements of the Colorado FAMLI program unless you have an approved private plan alternative. Here are the steps to follow:
- Communicate FAMLI to all your Colorado employees now.
- Register with the FAMLI Division at famli.colorado.gov right away.
- Collect premium deductions through payroll beginning 1/1/2023.
- Submit wage data and pay premiums by 4/30/2023.
- Consider the potential advantages of a “private plan” alternative.
A private plan may provide more flexibility and efficiency, particularly for larger or multi-state businesses. Moody Insurance can help you determine if a private plan is right for you and assist with submission and compliance.
Frequently Asked Questions about Colorado Family and Medical Leave Insurance
This is a highly confusing and complicated program. Let us know how we can help you learn more.
A: 0.9% of wages below the social security wage base, with half paid by the employer
(0.45%) and half paid by the employee.
A: Almost. Local governments may opt-out, and employers with 9 or fewer employees
must participate, but do not need to pay the employer share of the premium.
A: Almost certainly. As long as an employer has an approved private or self-funded
plan approved by the Division by 10/31/2023, and that plan meets all of the
requirements of the government plan, an employer should be able to opt-out and
benefit in a number of ways. Moody Insurance can facilitate this.
A: Under the Colorado family and medical leave insurance program (FAMLI), employees receive 37–90% of weekly wages, capped at $1,100/week, increasing to $1,324.21/week starting January 1, 2025
- Standard entitlement is up to 12 weeks of paid famli leave annually.
- Additional 4 weeks for childbirth complications.
- Beginning January 1, 2026, another 12 weeks may be available for parents with infants in the NICU—bringing total possible leave to 24 weeks.
- Nearly all Colorado employees (private and state)—local gov’t may opt out but employees can still participate.
- Eligibility: $2,500 in earnings during base period and 180 days with current employer.
Understanding FAMLI Leave in Practice
The FAMLI program is modeled in part on the federal Family and Medical Leave Act (FMLA), but there are key differences. FMLA provides job protection only, with no wage replacement, while Colorado’s FAMLI leave program offers both job protection and partial pay.
Leave under both programs may run concurrently, but FAMLI provides stronger financial support for Colorado workers. It ensures that employees can take time off for serious family or medical needs without sacrificing their income or job security.
Recent Updates to Colorado’s Famli Leave Program
The FAMLI law is evolving, with several key enhancements:
- NICU Leave Expansion: Beginning January 1, 2026, eligible parents of infants in the NICU may receive up to 24 weeks of leave—12 weeks of standard FAMLI leave plus 12 additional NICU-specific weeks.
- Premium Changes: The Colorado Department of Labor has announced that premium rates will decrease from 0.90% to 0.88% in 2026, reflecting adjustments as the program matures.
- Job Protections: Employers are prohibited from taking disciplinary or retaliatory action against employees who apply for or take FAMLI leave.
Why FAMLI Matters for Colorado Businesses
Providing access to paid leave isn’t just about compliance—it’s about supporting your employees during critical moments. By participating in the Colorado Family and Medical Leave Insurance program, or offering a qualified private plan, you demonstrate a commitment to your workforce’s well-being and job security.
FAMLI may also improve employee retention, reduce burnout, and position your company as an employer of choice in an increasingly competitive labor market.
Moody Insurance Can Help
If you’re unsure how the Colorado FAMLI program affects your business—or if you’d like to explore a private FAMLI plan—we’re here to help. Reach out today to speak with one of our specialists. We’ll walk you through your responsibilities, help you remain compliant, and determine the best path forward for your business and your people.
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