Colorado families get a lift from the FAMLI program

Beth Dean 01.12.23

Your medical leave could qualify for paid time off if you work in Colorado. 

We’re familiar with the Family Medical Leave Act (FMLA), allowing qualified employees up to 12 weeks of unpaid, job-protected leave to care for themselves or a family member during certain medical or family events. But the FAMLI program takes this coverage further in Colorado, offering paid time off for these events.

The Family and Medical Leave Insurance (FAMLI) program will provide paid leave to employees in Colorado to take care of themselves or their families during life circumstances that pull them away from their jobs. Most eligible employees will receive up to twelve weeks of leave. Those who experience pregnancy may receive an additional four weeks.

Here’s how it works

Beginning January 1, 2023, Colorado employers and employees will begin paying into the state program. 

The premium is 0.9% of employees’ wages, split evenly between the company and the employee. The employee will pay 0.45%, and the company will pay the other 0.45%. 

Companies with fewer than 10 employees do not have to pay their 0.45% share, but the 0.45% deduction must still be taken from the employee’s paychecks, as the benefit will be available to them.

During 2023, the deductions will be submitted to the state to fund the program. Then, beginning January 1, 2024, employees will be eligible to apply for payouts to cover qualified leave.

The FAMLI program will pay up to 90% (up to the federal Social Security wage cap) of the employee’s wages to them during their leave, based on a sliding scale. 

Qualifying FAMLI events

Here are some of the events that may be qualified for paid leave under the FAMLI program:

  • 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.

The main difference between FMLA and FAMLI is that FMLA provides unpaid, job-protected leave while FAMLI provides paid, job-protected leave. Colorado employees are protected by both programs simultaneously as they work hand-in-hand.

What this means for Nextep clients

We’ve already got you covered at Nextep! For our Colorado clients, we’re registering your account with the FAMLI program, collecting the required premiums via payroll deductions, and remitting them to the state authorities.

If you have a reason to be exempt, file directly with Colorado, then provide documentation of your exemption to Nextep so we can adjust our records and deductions. You’ll be required to file your exemption with Colorado by October 31, 2023.

Many of our clients have workers in several states. In those instances, your company’s eligibility for the program will be counted nationwide, but we’ll only collect premiums for those employees actually working in Colorado.

For required posters and more, companies may access the FAMLI Toolkit.

We’re here to help! Please reach out to your main point of contact at Nextep for more information about how this applies to you.

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