Most Colorado employees become eligible to take paid leave after they have earned at least $2,500 in wages within the State, over a period of a year.
No. FAMLI offers paid job protected leave once an employee has been at their employer for more than 180 days (about six months). The law also offers protection against retaliation.
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.
Most employees are eligible to receive up to twelve weeks of paid leave. Those who experience pregnancy or childbirth complications may receive an additional four weeks.
By July 1, 2022, and for the duration of the program, the division will coordinate outreach and education for both employees and employers about the program.
Overall, FAMLI is a shared fee to employers and employees based on .9% of wages. This rate is set through 2025 by Proposition 118, voted in by 57% of Coloradans as the authorizing vote of the people to create the FAMLI enterprise fund. Click here to use our premium calculator to estimate your wage deductions.
Most employees will see a FAMLI wage deduction on their pay stubs. However, some employers may choose to cover their employees’ portion as an added benefit.
The rate is set at 0.9% for the first two years of the program. Past 2025 the rate will be set each year by the Division Director and is based on a formula based on the funds balance and usage rates. The amount is statutorily capped at 1.2% of wages.
No. The FAMLI Act does not allow employees to opt out of the program. Only local government employers have the ability to vote to opt out of the program. Employees of those opted out local governments have the option to voluntarily opt in. Self employed individuals have the option to voluntarily opt into the program, but don't need to take any action to opt out. The following circumstances may exempt employees from paying the employee-portion of the FAMLI deduction:
- Employees of the federal government cannot access the state benefit, and therefore will not see any FAMLI-related wage deductions on their pay stubs.
- If an individual works for an employer who has chosen to cover their employees’ full portion of the contribution as an added work perk, the employee will not see any FAMLI-related wage deductions.
- If an individual works for a local government employer who has voted to opt out of the FAMLI program, the employee will not see any FAMLI-related wage deductions.
- Employers may apply to fulfill their FAMLI obligations by using a private plan that provides equal or great benefits as the FAMLI plan. Employers will be required to pay their FAMLI premiums until they receive approval from the Division to use their private plan. Employees of those employers may not see any FAMLI-related wage deductions, but may see other deductions depending on how the employer funds its private program.
Participation for self-employed workers is optional. If you do decide to opt into FAMLI as a self-employed worker, you must agree to participate by paying premiums and reporting your income for a minimum of three years in order to avoid only opting in only when the need for leave is foreseeable. There is no enrollment period for self-employed workers. You can opt in any time and apply for leave any time once benefits become available in 2024. No action is required until then.
FAMLI benefits are not subject to state income tax. However, the IRS has not made a clear decision as to whether or not FAMLI benefits are subject to federal income tax, and the FAMLI Division can’t advise individuals on their tax compliance. Therefore, we recommend that employees consult a tax professional for advice.
The FAMLI Division will issue IRS form 1099-G to employees who received FAMLI benefit payments, and the benefits paid will be reported in Box 1, which is labeled “unemployment compensation.” Per IRS instructions, this box is also used for governmental paid family leave programs.
“Self-employed individual” as used in the FAMLI Act and its implementing regulations includes individuals who meet the FAMLI Act’s two-prong exception to the definition of “employee” at C.R.S. 8-13.3-503(7) which states " (7) “Employee” means any individual, including a migratory laborer, performing labor or services for the benefit of another, irrespective of whether the common-law relationship of master and servant exists. For the purposes of this part 5, an individual primarily free from control and direction in the performance of the labor or services, both under the individual’s contract for the performance of the labor or services and in fact, and who is customarily engaged in an independent trade, occupation, profession, or business related to the labor or services performed is not an “employee.”