Employee benefits and retirement plan solutions Protect my employees Group insurance Paid family and medical leave & state disability insurance Colorado paid family and medical leave
Colorado paid family and medical leave

As of January 2024, most Colorado workers were eligible for paid family and medical leave under Colorado's paid Family and Medical Leave Insurance (FAMLI) program. An employer may opt out of the state program by having a state-approved private plan.

FAMLI is available to covered individuals who work in Colorado, including full-time, part-time and seasonal individuals who have earned at least $2,500 in wages, subject to FAMLI premiums over the preceding 5 calendar quarters. There is no requirement to have worked a minimum amount of time for an employer, before an individual can qualify for these benefits.

Please note that federal employees and some railroad workers are not covered under the FAMLI program. Self-employed individuals and independent contractors can voluntarily opt-in.
Key features

Coverage options

State plan or state-approved private plan. Principal® offers a fully insured private plan option.

Funding

Premiums are 0.9% of wages to the Social Security contribution limit. The funding rate will be set annually by the FAMLI Division Director - by statute, the rate is capped at 1.2%.

  • Employers with 10 or more employees - employers and their employees split the cost 50/50, and the full premium rate is remitted to the state. Employees should never contribute more than 50% of the total premium.
  • Employers with under 10 employees - the employer is exempt from paying contributions to the state plan; however, must continue to collect employee contributions.

If an employer chooses a private plan, employees cannot contribute more than they would under the state plan.

Waiting period

There is no waiting period. If eligible, an employee may receive benefits beginning the first day of their leave.

Benefit

FAMLI benefits are calculated using the following formula:

  • 90% of employees average weekly wage (AWW) up to 50% of the state’s current average weekly wage (SAWW); plus, 50% of the employee’s AWW that is greater than 50% of the current SAWW, up to the maximum benefit referenced below.
  • SAWW is updated annually on 7/1.

Maximum benefit

$1,324.21/week in 2025

Benefit duration (within a 52 consecutive week period)

Combined paid family and medical leave – 12 weeks, plus 4 additional weeks for a serious health condition related to pregnancy complications or childbirth complications
Principal® has a solution

Submitting a claim

To start a PFML claim in Colorado, complete and submit the claim online.

Or, complete and submit the appropriate PFML claim form:

We’re here to help by offering a state-approved voluntary private plan. When you have other group insurance products with us, it’s easy to add this solution. Plus, you get the same top-level service that comes with any of our products.

You can be assured Principal is committed to offering a private plan that meets your obligation under the paid family and medical leave law as a Colorado employer. Our fully insured product is available to employers who offer at least one other qualifying, insured Principal product (group term life , dental, vision, or long-term disability) and have 10 or more employees working in Colorado.

Get more information about the private plan solution from Principal.  
Reach out

Want to learn more?

Talk to your financial professional to design a benefit offering that meets the specific needs of your business and employees.

Footnotes

Must cover all full-time employees with a $25,000 minimum benefit. 

This summary is not a complete statement of the rights, benefits, limitations or exclusions of the insurance described here. For cost and coverage details, contact your Principal financial professional.

Insurance products issued by Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392.