Large employers and employees in Longmont will begin contributing to Colorado’s new Family and Medical Leave Insurance Program beginning Jan. 1.
Proposition 118, approved by Colorado voters in 2020, aims to ensure all Colorado workers have access to paid leave to take care of themselves or their family during life circumstances. Employer and employee contributions begin in 2023, with benefits beginning in 2024.
Once the benefits are in place, employees will be eligible for up to 12 weeks of leave paid as a proportion of their weekly wages depending on how much they earn. Those who experience pregnancy or childbirth complications may receive an additional four weeks.
The premium for the program is currently set at 0.9% of an employee’s wage, with half of that being paid by the employer and half by the employee for organizations with at least 10 employees. Employers can pay the full amount if they choose to offer this as a benefit.
Employers are responsible for deducting and remitting the employee’s share of wages.
In smaller companies with nine or fewer employees, the employer does not have to pay their share but still has to collect and remit the employee’s contribution.
Self-employed workers and independent contractors have the option of voluntarily opting into the program, while local government employers are the only organizations that have the option to opt out — both the Longmont city government and St. Vrain Valley School District opted out. Local government employees can still choose to opt in and contribute a premium.
Everyone else, including domestic workers, clergy and nonprofits, are required to comply with premium payments, though private sector employers may decide to meet their FAMLI requirements through an approved private plan. Federal employees and some railroad workers are not covered under FAMLI.
The premium rate of 0.9% is set through 2024, with the premium rate to be set by a formula based on the monetary value of the FAMLI fund in 2025 and beyond. Premiums are currently capped at 1.2% per statute, and other states have seen premiums decrease over time.
Employers are required to notify their employees about the FAMLI program by Jan. 1. Employees will be able to apply for benefits beginning the last quarter of 2023.
Editor's note: This article has been updated to reflect the correct span of paid leave for employees, which is 12 weeks.
