What is Colorado FAMLI (Family and Medical Leave Insurance) in 2026?

Colorado's Family and Medical Leave Insurance (FAMLI) program gives workers paid time off for serious illness, parental bonding, military family needs, safe leave, and—new for 2026—caring for a newborn in a neonatal intensive care unit. The eligibility, contribution, and notice rules can stretch even experienced HR teams thin.

Deel handles payroll administration, state tax filings, and leave management, so your team can support workers through major life events without juggling vendors or chasing rule changes.

Here's what you should know about the FAMLI program in Colorado for 2026.

Understanding the Colorado FAMLI program

The Colorado FAMLI program is a voter-approved initiative that provides paid leave benefits to eligible workers for certain family and medical reasons. Benefits launched in January 2024, and the program is administered by the Colorado Department of Labor and Employment.

See more: Comprehensive Guide to Payroll Taxes in Colorado

What's new in FAMLI for 2026

Two significant changes took effect on January 1, 2026, under Senate Bill 25-144:

• Premium rate reduced: The total FAMLI premium dropped from 0.9% to 0.88% of wages. Employees and participating employers each pay 0.44%
• Neonatal Care Leave added: Eligible parents whose newborn is receiving inpatient care in a neonatal intensive care unit (NICU) can now take up to 12 additional weeks of paid leave per infant, on top of the standard 12 weeks of bonding leave. Colorado is the first state to offer a paid leave category specifically for NICU care

Combined with existing entitlements, a parent whose newborn requires NICU care could be eligible for up to 24 weeks of paid leave (12 weeks of bonding plus 12 weeks of neonatal care), or up to 28 weeks if pregnancy or childbirth complications also apply.

Who is eligible for Colorado FAMLI?

Most workers in Colorado qualify for FAMLI benefits after earning at least $2,500 in wages subject to FAMLI premiums in the state during the last five completed calendar quarters. There's no minimum tenure requirement with a single employer, as wages from multiple Colorado jobs count toward the threshold.

Coverage includes full-time, part-time, and seasonal workers. Self-employed individuals and independent contractors can opt in voluntarily. Federal employees and some railroad workers are not covered.

For job protection, workers must have been employed with their current employer for at least 180 days before the start of leave. All covered workers, regardless of tenure, are protected from retaliation for using FAMLI benefits.

What FAMLI Colorado covers

How Colorado FAMLI benefits are calculated

The exact benefit amount is calculated by the FAMLI Division using a sliding scale that compares the worker's average weekly wage over the previous five calendar quarters to Colorado's state average weekly wage, which is $1,534.94 for 2025–2026.

Here's how the calculation works:

• The first $735.67 of a worker's average weekly wage is replaced at 90%
• Any portion above that is replaced at 50%
• The maximum weekly benefit is capped at $1,381.45

Lower-wage earners receive a higher percentage of their wages replaced. The state's online calculator can produce an estimate of weekly benefit amounts based on actual earnings.

Colorado FAMLI job protections

Under the Colorado Paid Family and Medical Leave Insurance Act, workers who take leave are entitled to be restored to the same or an equivalent position upon their return. That means employment status, pay, benefits, and other terms and conditions of employment must be equivalent to what the worker had before taking leave.

Job protection applies once a worker has been with their current employer for at least 180 days. Workers without 180 days of tenure are still entitled to FAMLI benefits and are protected from retaliation, but their position is not guaranteed.

Employers must also continue paying their portion of health insurance during FAMLI leave on the same terms as before the leave began.

See more: Understanding Colorado Employment and Labor Laws

How to claim FAMLI Colorado benefits

Employees must apply for FAMLI benefits directly with the Family and Medical Leave Insurance Program.

Workers should give their employer 30 days' notice when possible, or notify their employer as soon as practical. Benefit payments come from the FAMLI Division by debit card or direct deposit, not from the employer. Employers continue to manage their share of health insurance and other ongoing benefits during the leave period.

Apply online for FAMLI benefits.

Stay compliant with Deel

New to managing parental and family leave laws in Colorado? With Deel, you can offload compliance risks and processes to align with state and federal rules across all 50 states:

• Expert payroll administration, HR, and benefits compliance built on owned infrastructure
• Continuous compliance with state regulation updates applied automatically
• Leave management for FMLA, parental leave, vacation, and sick time
• State and local tax filings, state registration management, and new hire reporting
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• Aetna International coverage for W-2 employees traveling abroad
• HR policy templates, trainings, and on-demand HR support

To learn more about how you can use Deel to scale in the US, book a demo below with one of our dedicated experts.