The Paid Family and Medical Leave Act was passed on November 3, 2020, which makes Colorado the ninth state to offer paid family and medical leave. Key provisions include: covered employees may be entitled to 12-16 weeks of paid leave for qualifying events; to be eligible, employees must be employed at least 180 days and have earned at least $2,500 in wages during the employee’s base period as defined under the Act; and the cost of the program is shared 50/50 between employer and employee with contributions representing 0.9% of employee wages until December 31, 2024 (at this point the contribution rate will be reviewed and set by the program director).
Payroll deductions will begin on January 1, 2023, with the first benefits being payable on January 1, 2024.
Employers with less than 10 employees are exempted from employer contributions, and employers can opt-out of participation in the state plan through an approved private plan.
