Colorado FAMLI: Paid Family and Medical Leave Launched 2024

A Voter-Approved Program That Actually Pays Out

Colorado is one of the few states where paid family and medical leave was created not by the legislature but directly by the voters. Proposition 118 passed in November 2020, mandating the creation of a state-administered paid leave program funded by payroll contributions. The program, formally called Family and Medical Leave Insurance and abbreviated FAMLI, began collecting premiums in 2023 and paying benefits to claimants on January 1, 2024.

Colorado workers who file claims now are using a benefit they have already been funding through payroll deductions for two full years. That is an important reframe. FAMLI is not an employer benefit you have to negotiate for. It is a state insurance program you have already paid into, and the question for any eligible worker is not whether to use it but how to navigate the application process when a qualifying event arises.

This article is general information, not legal advice. Laws change and vary by jurisdiction — verify with the relevant government agency or an employment attorney. It reflects Colorado FAMLI rules as of 2026.

Who Is Covered by FAMLI

FAMLI applies to nearly all Colorado workers. The eligibility threshold is based on earnings rather than time on the job: you must have earned at least $2,500 in subject wages from any combination of Colorado employers within the relevant base period. That is a notably low threshold, which means part-time, seasonal, and recently hired workers are covered in many cases where they would not qualify for federal FMLA.

Coverage extends to:

• Private-sector employees in Colorado
• Most state and local government employees (with some opt-out provisions)
• Self-employed workers who voluntarily opt in and pay premiums
• Workers at small employers (no minimum employer size for employee eligibility, although small employers are exempt from contributing the employer share of premiums)

Colorado employees pay roughly half of the FAMLI premium, with employers paying the other half. Employers with fewer than 10 employees are exempt from paying the employer portion, but their employees still get coverage. The premium rate is set by the Division of Family and Medical Leave Insurance and adjusts periodically.

What FAMLI Covers and for How Long

FAMLI provides up to 12 weeks of paid leave per benefit year for the following reasons:

• Bonding with a new child within the first year after birth, adoption, or foster placement
• Caring for a family member with a serious health condition
• A serious health condition affecting the worker themselves
• Qualifying military exigencies when a family member is on active duty
• Safe leave related to domestic violence, sexual assault, or stalking

For workers who experience pregnancy or childbirth complications, the leave extends up to 16 weeks, providing an additional four weeks specifically for those medical situations.

The definition of family member is unusually broad in Colorado. It includes spouses, domestic partners, children, parents, parents-in-law, grandparents, grandchildren, siblings, and any person whose close association is the equivalent of a family relationship. That last clause means chosen family relationships may qualify, which is one of the most expansive definitions in any state program.

Wage Replacement and the Income Cap

FAMLI provides wage replacement of up to 90 percent of your average weekly wages, subject to a state-determined cap that adjusts each year based on the state average weekly wage. The exact percentage depends on your income level: lower-wage workers receive closer to 90 percent of their wages, and higher-wage workers receive a lower percentage as they approach the cap.

The benefit cap matters most for higher-income workers, who will see their benefit max out below their actual salary. For those workers, employer-provided supplemental benefits, short-term disability insurance, or PTO supplementation can fill the gap.

How FAMLI Interacts with Federal FMLA

FAMLI and federal FMLA are two different things that often run on the same person at the same time. FMLA provides job protection. FAMLI provides income. When both apply, leave usually runs concurrently, with FMLA's 12-week clock and FAMLI's 12-week benefit clock both counting down at the same time.

If you are eligible for both programs and you take 12 weeks for a single event, you typically use 12 weeks of FMLA-protected leave and 12 weeks of FAMLI benefits. You do not stack 24 weeks total. The job protection comes from FMLA (or from FAMLI's own job protection rule if you have been with your employer at least 180 days) and the wage replacement comes from FAMLI.

A few important points:

• FAMLI has its own job protection for workers who have been with the same employer for at least 180 days. That means workers at small employers (under 50 employees) who would not be FMLA-eligible can still receive both income and job protection through FAMLI, after the 180-day mark.
• FMLA can apply when FAMLI does not. For example, FMLA covers some military caregiver scenarios that FAMLI does not, and vice versa.
• Employers cannot require you to use accrued PTO instead of FAMLI, although they can offer to supplement FAMLI with PTO to bring you to full salary. The choice to supplement is generally yours.

For a deeper look at how PTO interacts with federal FMLA, see FMLA and annual leave interaction. The same general dynamics apply in Colorado, with the added wrinkle that FAMLI itself partially replaces the lost income.

The Private Plan Option

Colorado law allows employers to opt out of the state FAMLI program if they offer a private plan that is at least as generous in every respect: same duration, same wage replacement, same family member definitions, same job protections. Private plans must be approved by the Division of Family and Medical Leave Insurance.

For workers, the practical implication is mostly invisible. Your benefits should be at least as good either way. The key differences:

• Where you file your claim. State plan claims go to the FAMLI division. Private plan claims go to your employer's insurance carrier.
• Premium contribution. The split should be the same, but private plans sometimes vary employee contributions.
• Documentation requirements. Private plans may have slightly different documentation rules, although they cannot be more burdensome than the state plan.

If your employer has an approved private plan, that fact should be disclosed to you in writing at hire and at the start of any benefit year. Always check your pay statement to see whether premium contributions are flowing to the state or to a private carrier.

PTO Payout at Termination

Colorado is one of the more employee-friendly states on PTO payout, although the rules are nuanced. The Colorado Wage Act treats earned vacation pay as wages once it has accrued. That means:

• Employers cannot impose strict use-it-or-lose-it policies that strip you of accrued vacation
• Accrued, unused vacation must be paid at termination
• The payout must be at your final rate of pay

Colorado courts have interpreted the Wage Act to invalidate forfeiture clauses that take away earned vacation. Employers can cap accrual (so that you stop earning new vacation once you hit a ceiling), but they cannot wipe out the balance you have already earned.

For broader comparisons, see PTO payout when you quit by state and use-it-or-lose-it laws by state.

The interaction with FAMLI is straightforward: FAMLI is a state insurance benefit, not an employer-provided PTO bank, so it is not paid out at termination. Only employer-provided vacation is subject to the Wage Act payout requirement.

Colorado State Holidays in 2026

Colorado observes the standard federal holidays plus a handful of state-specific days. Of the state-specific days below, Frances Xavier Cabrini Day is the one on Colorado's official legal holiday list (C.R.S. 24-11-101). Cesar Chavez Day is a discretionary observance that state agencies may grant in lieu of another holiday, and Colorado Day is a commemorative observance that most offices do not close for. Private employers are not required to give paid time off for any of these, but the calendar still creates planning opportunities for any worker with vacation or any-reason leave to allocate.

Colorado replaced Columbus Day with Frances Xavier Cabrini Day on the state holiday calendar, observed on the first Monday of October. Some Colorado employers observe one, the other, or both. The October 5 to October 12 window is the most distinctive Colorado bridge opportunity: with both holidays falling on Mondays one week apart, taking the four PTO days in between turns this into a nine-day stretch off work.

For the underlying mechanics of building extended breaks from holiday clusters, see how holiday bridges work.

How to Plan Leave in Colorado

The Colorado leave landscape is best thought of as three layers stacked together: FAMLI for serious life events, employer-provided PTO for vacation and personal time, and the strong PTO payout rules that make every accrued day a real wage entitlement. A practical priority order:

1. File for FAMLI when a qualifying event occurs. Bonding leave, serious health condition, family caregiving, safe time, and military exigencies are all FAMLI-covered. Use the program you have been paying into.
2. Coordinate with FMLA when both apply. If your employer has 50+ employees and you have been there 12+ months and 1,250+ hours, FMLA job protection runs concurrently with FAMLI benefits.
3. Use PTO for supplementation only when you choose to. Your employer cannot force you to use PTO during FAMLI, but you may choose to use PTO to top up FAMLI benefits to your full salary.
4. Treat accrued vacation as wages. Colorado's Wage Act protects your accrued balance. There is no urgency to burn it for sick events that FAMLI covers.
5. Plan vacation around the October Cabrini-Columbus window and the standard four-day weekends throughout the year.

If you are in a position to negotiate, the most valuable employer-side items in Colorado are: a higher PTO accrual cap (which translates directly to wages under the Wage Act), supplemental short-term disability coverage to top up FAMLI for higher earners, and explicit policies about FAMLI-PTO interaction at the offer stage. For a framing on negotiation, see how to negotiate more annual leave.

What Should You Do Next?

FAMLI is one of the most substantial recent additions to American paid leave law, and Colorado workers who experience a qualifying event have a state-funded benefit waiting that did not exist a few years ago. The first thing to do when a serious health or family event arises is to file for FAMLI: your accrued PTO is more valuable preserved for actual rest than burned during a crisis.

The second question is when to use the rest of your leave. The Colorado calendar in 2026 lays out particularly well, with the October two-Monday window offering the most distinctive bridge opportunity in the country.

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