CO FAMLI Changes Effective Jan. 1, 2025

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CO Family and Medical Leave Insurance (FAMLI), which is Colorado’s version of a Paid Family & Medical Leave (PFML) program, is entering its second year – and with that come a few key updates, particularly the maximum weekly benefit.

CO FAMLI Max Weekly Benefit Changes on Jan 1, 2025

Starting January 1, 2025, the new maximum weekly benefit cap changes from the initial fixed amount of $1,100 in 2024 to an amount set to 90% of the Colorado State Average Weekly Wage (SAWW).

Coupled with the CO SAWW increase to $1,471.34 (as updated in July 2024, read details here), the maximum weekly benefit will rise to $1,324.21 starting January 1, 2025.

It is important to know that 2025 will be an outlier year for CO FAMLI with two separate changes to the maximum weekly benefit amount:

• The first increase occurs on January 1, 2025 to $1,324.21 as the amount switches from a fixed cap to being tied to the CO SAWW.
• The maximum weekly benefit amount changes again on July 1, 2025 as part of Colorado’s annual SAWW update.

From then on, both the Colorado SAWW and the FAMLI maximum weekly benefit amount will update annually only on July 1. 

While some states delay implementation of new benefit amounts until the start of a calendar year, Colorado begins using the updated SAWW amount in its calculations immediately upon the change taking effect July 1, both for new claims and for those existing claims already in-flight.

Expert Tip: Sign-up for updates here to get notified of the mid-year changes!

How do the benefit updates affect new and open claims?

For the change in the maximum weekly benefit amount on January 1, 2025, CO FAMLI Division has announced that the new maximum weekly benefit amount will only affect new claims for leave that begin on or after January 1, 2025.

• That means that the current $1,100 maximum weekly benefit will remain for any claims that begin on or before December 31, 2024, even if they stretch into 2025.
• While this is standard practice in other states, this is an unusual one-time deviation for CO FAMLI Division’s protocol to not require in-flight claims to be recalculated using a revised maximum weekly benefit amount.
• The new 2025 maximum weekly benefit amount affects claims that begin on or after January 1, 2025, and will now only kick in for those claimants whose average weekly wage is $2,059.89 or more. Beyond that, any employee seeking benefits will receive the capped amount of $1,324.21.

Not sure what your benefits may be for your situation? You can use this formula to determine your weekly benefit here for claims beginning on or after January 1, 2025:

1. Determine your Average Weekly Wage (AWW):

• Add up your weekly earnings over the past 5 calendar quarters and average them out. 

2. Follow these calculation steps:

• 90% of the portion of your AWW that is equal to or less than $735.67 (i.e. 50% of SAWW)
• plus 50% of the portion of your AWW that is above $735.67
• together, capped at the maximum weekly benefit of $1,324.21 (i.e. 90% of the current SAWW through 06/30/25)

In other words, the first $735.67 of your AWW will be replaced at a rate of 90%, and the rest will be replaced at 50%, up to the cap.

Or if you want to keep it simple, you can always use the CO FAMLI Benefit Calculator, here.

Let’s take a look at a few examples to see how this works:

As you see, Ali’s benefit wouldn’t change, because his wages are below either of the benefit caps. 

By contrast, Barbara and Mickey’s benefits are different based on the date the benefits begin – with Mickey’s benefits maxing out at the new cap since his benefits began after Jan. 1, 2025.

CO FAMLI State Plan & Private Plan Contribution Rates

Here’s what won’t change: the CO FAMLI State Plan contribution rate. It will remain at 0.9% in 2025, split evenly between employers and employees at 0.45% each. Alternatively, employers can choose to cover the full contribution as a perk for their employees.

For those enrolled in Private Plans, the benefits must be equal to or more generous than the State Plan. While Private Plan rates may differ from the rate for the State Plan, employees cannot be required to contribute more than they would under the State Plan. Learn more about ShelterPoint’s Colorado PFML Private Plan coverage options here.

CO FAMLI Rules Update

The Colorado Department of Labor and Employment’s FAMLI Division has finalized significant amendments to its program rules that will go into effect on January 1, 2025. These changes will have significant impacts for Colorado employers, so sign up for updates here so we can share relevant changes with you.

Important Reminder for ShelterPoint Private Plan Holders

If you have Colorado FAMLI Private Plan coverage, don't forget that you need to complete your annual attestation in your My FAMLI+ Employer portal to confirm compliance with FAMLI requirements.

The ShelterPoint family of companies operates under the ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier (principal office in Garden City, NY), and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark. All images licensed through iStockphoto.

This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of CO’s applicable laws and regulations as of the publication date and may change as regulations evolve or CO issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.

Policies are subject to Underwriting approval. Policies are reviewed annually and may be cancelled for nonpayment. All coverage extends to limits reflected in the policy. Please refer to the policy for coverage details pursuant to its governing law, including a complete listing of covered services, provisions, conditions, exclusions, limitations, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and its governing Law, the policy and governing Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages.

The Colorado Paid Family and Medical Leave Insurance Act § 8-13.3-501 et seq., C.R.S.and its implementing regulations including 7 CCR 1107-1, et seq.  govern this Private Plan and its interpretation and administration. Available in CO only.

Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: CO (form# SPL PFMLP 0123 CO)