What is Colorado Paid Family and Medical Leave?
Colorado Family and Medical Leave (FAMLI) is a state program that allows employees and certain self-employed individuals to take up to 12 weeks of leave (Paid Medical Leave, Paid Family Leave, and Safe Leave), paid for by contributions from the state. The program provides job protection to employees once an employee has been at their employer for more than 180 days (about six months). The law also offers protection against retaliation. Employers must continue employees’ health insurance while they are on CO FAMLI, however employers may require that employees continue to pay their health insurance premium contributions.
Collections for premiums from both the employer and the employee begin on January 1, 2023 and will be processed through payroll deductions. Eligible employees can begin taking leave under CO FAMLI starting on January 01, 2024.
Eligible individuals can use FAMLI leave to take time away from work in order to:
- Care for a new child, including adopted and fostered children
- Care for themselves, if they have a serious health condition
- Care for a family member’s serious health condition
- Make arrangements for a family member’s military deployment
- Address the immediate safety needs and impact of domestic violence and/or sexual assault
For more, visit the Colorado Family and Medical Insurance Program (FAMLI) website.
Who is eligible?
Employees become eligible for taking leave after earning $2,500 in wages during their base period (the first four of the last five completed calendar quarters immediately preceding the first day of the individual’s benefit year) or alternate base period ("Alternative base period" means the last four completed calendar quarters immediately preceding the benefit year).
An employee can meet the $2,500.00 threshold by earning wages subject to premiums from any combination of employers, and need not earn $2,500.00 from their current employer to meet the threshold.
Most Colorado workers (full time, part time, and seasonal) will see a new deduction on their paychecks starting January 01, 2023 and eligible employees can take leave starting on January 01, 2024.
Who pays for the benefit?
CO FAMLI is funded by both employers and employees. The premium is collected through payroll deductions. The total contributions are 0.9% of the employee’s gross wages (up to $1,323). In cases where an employer has 10 or more employees, this premium is split 50/50 between the employer and employee with each paying .45% of the employee’s gross wage. If an employer has less than 10 employees, they are not required to submit the employer portion but the employee will still contribute .45%.
Filing a claim
More information to come as the state prepares to take claims starting January 01, 2024.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.