Last updated: September 2026
From the desk of TTC
If you’re a business owner in Colorado and just learning about FAMLI, you’re bound to have questions. Or, you might have your head in the sand in hopes that ignoring this paid leave program might make it go away. Well, we’re here to tell you that it’s here to stay — and if you haven’t revisited your understanding of it since it first launched, several details below have changed for 2026.
The good news is that through this program, employees have access to paid leave benefits through the state. However, as a business owner or HR business leader, there are things you should know and important decisions you’ll need to make.
We’ve laid out the key points employers need to know about FAMLI and information you can share with your employees.
What is Colorado’s Family and Medical Leave Insurance (FAMLI) program?
FAMLI is a program approved by voters in 2020 that ensures all Colorado workers have access to paid leave in order to take care of themselves or their families during life circumstances that pull them away from their jobs.
FAMLI provides employees with a portion of their wages during their leave, paid directly by the state. If you are an employer that is currently required to offer FMLA, this program covers the same conditions as leave under the FMLA and is designed to run concurrently with that unpaid FMLA leave.
FAMLI will likely help smaller businesses retain employees if they have not had something similar in place for their employees. Businesses that have a paid leave program in place may apply for an exemption that will have to be reviewed to determine whether it offers benefits that are equal to or greater than the FAMLI program.
How does FAMLI work?
Employers and employees share the cost of the program. For 2026, the premium is 0.88% of gross wages, split evenly at 0.44% each. If your business has 9 or fewer employees, only the employee’s share is required — you’re exempt from the employer portion.
The rate isn’t fixed forever: starting in September 2026, the FAMLI Division director will set each year’s premium rate going forward, capped at 1.2%. Premiums are paid online through the employer’s payroll system on a quarterly basis.
Who is eligible?
Employees become eligible to request paid leave once they’ve earned at least $2,500 in wages working in Colorado over the previous year. This threshold can be met from work with a combination of employers.
How does leave work?
Leave requests are approved through the Colorado FAMLI division. Once approved, employees can take up to 12 weeks of paid leave (an additional 4 weeks for pregnancy or childbirth complications).
New for 2026: employees may also take up to 12 additional weeks of leave if their child requires inpatient care in a Neonatal Intensive Care Unit (NICU).
During their leave, employees receive between 37% and 90% of their wages from the state. Benefits are capped at $1,381.45 per week for 2026.
Leave can only be taken once a year across a rolling calendar year. For example, if 12 weeks of leave is approved to begin May 1, then the employee would not be able to utilize leave again until May of the following year.
How will an employer know about a leave request?
Employer notification is handled through the My FAMLI+ Employer portal. If you’re unsure how a specific claim was communicated to your business, that portal — or the FAMLI Division directly — is the authoritative source to confirm current notification procedures.
Can an employer replace an employee out on leave?
Employees on leave have the right to job protection. This means that once they return to work, they should be in the same position, with the same wage, and same seniority/status that they had before taking the leave.
Hiring temporary staff is allowed and encouraged. However, it is important that you be forthright that the position is anticipated just to be temporary.
Questions? We’re here to help
This brief overview may have brought about more questions, which is why we’re here to help! For guidance specific to your organization, reach out or send an email to [email protected].
We’re here to help you successfully translate, navigate, and incorporate the FAMLI program into your business. And, we’re available to help educate your team on the benefits available to them.
For related current guidance, see our posts on Colorado sick leave requirements, PTO and paid leave laws, and Colorado employment law updates for 2026.
This article provides general information and is not legal advice. Colorado employment requirements can change, and employers should review current Colorado Department of Labor and Employment guidance or consult qualified counsel regarding specific legal questions.