Colorado Paid Family Leave for Employers - FAMLI
Colorado employers need to understand how Paid Family and Medical Leave Insurance, or FAMLI, fits into their employee benefits responsibilities. Covered employers generally must participate through the Colorado state plan or through an approved private plan that meets the state’s standards. National Benefits Consultants helps Colorado employers review those options and understand how paid family leave can fit into a stronger employee benefits package. Approved private plans may be fully insured or self-funded, but they must be approved by the Colorado FAMLI Division and provide benefits and protections that are at least as generous as the state plan.
What Colorado FAMLI Means for Employers
Colorado FAMLI is the state’s paid family and medical leave program. Employers generally need to either stay in the state-run plan or move to an approved private plan. A private plan is not just any disability or leave product. It must be approved by the state and cannot be more restrictive than the state plan or cost employees more than the state contribution rate.
State Plan or Approved Private Plan
For many employers, the practical decision is whether to remain in the state plan or adopt an approved private plan. The state plan may feel simpler because the program is already established. A private plan may appeal to employers who want a more integrated employee benefits approach, want to work through an insurance carrier, or want closer coordination with the rest of their leave and disability strategy. Colorado allows equivalent private plans, including fully insured and self-funded options, as long as they are approved and remain compliant.
Why Some Employers Consider a Private Plan
- they want paid family leave aligned with the rest of their employee benefits package
- they want to work through an approved insurance carrier or structured private-plan solution
- they want a benefits strategy that may feel more coordinated for employees and HR
- they want an alternative to the state-run administration path
- they want a plan that can still satisfy Colorado requirements if it is approved and at least as generous as the state plan
What Employers Need to Watch
Employers should be careful not to assume that choosing a private plan eliminates compliance duties. Approved private plans still come with ongoing obligations. Colorado-approved private plans are valid for eight years, but employers must continue meeting state requirements to maintain approval. Current employer updates also note ongoing annual private-plan tasks such as attestation requirements and maintenance fees.
Premium and Cost Considerations
Colorado’s FAMLI premium rate for 2026 remains 0.88% of wages, commonly split between employer and employee at 0.44% each, though an employer may choose to pay more of the cost. Employers comparing the state plan and a private-plan option should review both compliance and cost structure before deciding.
How National Benefits Consultants Helps
National Benefits Consultants helps Colorado employers review paid family leave options as part of a broader employee benefits strategy. We help employers understand the difference between the state FAMLI path and approved private-plan options, coordinate FAMLI decisions with the rest of the benefits package, and review whether a private-plan approach may make sense for the business. A natural fit for employers who already rely on National Benefits for group health, ancillary benefits, and broader benefits planning.
Need Help Reviewing Your Colorado FAMLI Options?
Need help reviewing Colorado paid family leave options for your business? Call 720-488-9892 or contact National Benefits Consultants to discuss Colorado paid family leave, approved private-plan options, and employee benefits strategy for your employer group.