The Colorado Family and Medical Leave Insurance (FAMLI) program is here, and if you employ workers in the state, compliance isn’t optional. Beginning in 2023, employers were required to begin collecting premiums, and as of January 1, 2024, employees became eligible to take paid family and medical leave.
For many businesses, understanding what’s required and how best to administer FAMLI can feel overwhelming. That’s where we come in—our team at Moody Insurance is here to help employers make sense of their responsibilities and their options.
What Is FAMLI?
The Colorado FAMLI program is a state-run social insurance program that provides partial wage replacement and job protection for employees who need to take time away from work for major life events. This includes:
- Caring for a new child (birth, adoption, or foster placement)
- Recovering from a serious personal health condition
- Supporting a seriously ill family member
- Managing family needs during a military deployment
- Caring for a newborn with complications requiring NICU hospitalization (starting January 1, 2026)
Eligible employees can take up to 12 weeks of paid FAMLI leave, with an additional 4 weeks available for pregnancy- or childbirth-related complications. Beginning in 2026, parents with infants in the NICU may be eligible for up to 24 weeks of leave.
Employer Requirements
Colorado employers must:
- Register with the FAMLI Division at famli.colorado.gov
- Begin payroll deductions for employee contributions (effective January 1, 2023)
- Contribute the employer portion if you have 10 or more employees
- Submit wage data and premiums on a quarterly basis
- Display required FAMLI workplace notices
Importantly, employers with fewer than 10 employees are exempt from paying the employer share of premiums, but they still must remit employee contributions.
Private Plan Options
Many employers are asking whether they can opt out of the state-run program. The answer is yes—if you have a private plan that meets or exceeds the benefits of the state program, you may be eligible for exemption.
Private plans can give businesses more flexibility and control over how benefits are administered. Moody Insurance can help you evaluate whether a private FAMLI plan is the right fit for your company.
Learn more about how the program works and how Moody Insurance can support you: Colorado Family and Medical Leave Insurance: Your Ultimate FAMLI Guide
Why Employers Should Take Action Now
Even if your business is already deducting premiums, it’s important to ensure you’re fully compliant. The state has strict rules around FAMLI, and failure to follow them could result in penalties. Beyond compliance, however, participating in FAMLI or implementing a private plan is also about supporting your workforce. Paid leave programs help reduce turnover, improve employee morale, and create a healthier workplace culture.
At Moody Insurance, we’re committed to helping Colorado businesses navigate the complexities of FAMLI. From compliance support to exploring private plan alternatives, we’ll guide you through every step.
