DENVER (KDVR) — Plan ahead: A new paycheck deduction is on the books for Colorado workers.
Colorado employers will now deduct nearly half a percent from paychecks for a new paid family leave program known as FAMLI, or the Family and Medical Leave Insurance Program.
Paid leave for childbirth, family care, deployment
Nearly 58% of Colorado voters approved the program in a 2020 ballot question. It provides up to 12-16 weeks of paid leave for situations like having a child, taking care of a loved one with serious medical issues or preparing for a military deployment.
“There are going to be situations in people’s lives where they are pulled away from work, whether that is a serious health condition of a family member, it may be that they have a loved one that is going on a military deployment — those needs to be away from work will now come with some wage replacement,” Tracy Marshall, division director for FAMLI, told FOX31.
Employers are to withhold 0.45% from employees’ paychecks and contribute a matching 0.45% from their organization. Workers will not be able to claim the benefit, however, until January 2024.
All employers are required to register with the FAMLI program and pay premiums. But they are able to offer a private plan and can be exempt from the program, but not without approval from the state.
FAMLI expects to open applications for private plan approval in the first few months of 2023.
The requirement to pay into the FAMLI program does not apply to self-employed people, who can choose whether to register.