Press Release: Colorado’s Family and Medical Leave Insurance (FAMLI) Announces Lower Premium Rate Starting in 2027

DENVER - Today, Governor Polis and the Colorado Department of Labor and Employment (CDLE) and its Paid Family and Medical Leave Insurance (FAMLI) Division announced that the premium rate will drop from 0.88% in 2026 to 0.86% starting in 2027.

"FAMLI leave is supporting Coloradans and young families during some of life's most important moments. This lower premium rate is a win-win. It will let workers keep more of your hard earned paycheck and help businesses save money, all while protecting the long-term ability to provide these important benefits to Coloradans. Voters approved this benefit, and we're delivering it at a lower cost to workers and businesses, ensuring Colorado stays the best state to live, work, and raise a family," said Governor Polis.

"Our division is committed to reducing the financial burden when life gets stressful, and keeping the benefit affordable requires years of careful planning and strong fiscal management," said FAMLI Division Director Tracy Marshall. "I'm proud of the work we've done in a short amount of time to keep the program affordable by lowering the premium rate for the second year in a row."

Workers and employers began contributing premiums to the insurance fund in 2023, setting up the funds needed to financially support workers during some of life's most rewarding and challenging moments. The initial premium rate was set by the ballot measure and began at 0.9% of wages with employers contributing half, and workers contributing half through payroll deductions. The rate was reduced by legislation (SB 25-144) to 0.88% at the start of 2026 and will decrease again to 0.86% starting in 2027.

Next year's rate reduction is the first to be set administratively by the FAMLI Division reflecting the program's strong financial position. The latest actuarial projections conducted in June 2026 confirm the program's long-term sustainability and ability to deliver benefits to Colorado workers with the new, lower premium rate. Since its inception, the program has distributed roughly $2.25 billion in benefits and supported more than 425,000 Colorado families.

Launched after voters overwhelmingly approved the program in 2020, FAMLI began distributing benefits in 2024. The program provides up to 12 weeks of paid leave for eligible workers to treat or recover from their own serious health condition; to care for a loved one with a serious health condition; to make arrangements for a family member's military deployment; to seek safety from domestic violence or assault; or to bond with a new child, including those recently adopted or placed in foster care. On January 1, 2026, Colorado's paid leave program also became the first in the country to extend benefits for families with infants who receive intensive care. FAMLI's Neonatal Care Leave allows eligible parents to get up to 12 weeks of paid leave during their baby's hospital stay. After their baby is discharged, these families may still be eligible to take 12 additional weeks of paid time off to bond with their baby at home.

Most Colorado workers are eligible for FAMLI benefits, including self-employed individuals, independent contractors, and employees of local government employers that have opted out. Families can explore their options and potential leave scenarios on FAMLI's website here.

Most Colorado employers are required to participate in FAMLI in some way. Employers and third party payroll administrators can get support understanding their roles and managing their administrative requirements on FAMLI's website here.

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