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Navigating Colorado’s Latest FAMLI and Sick Leave Updates for 2025

Colorado offers employers extra protections when it comes to health-related time off. In 2025, there are two key programs to consider: the FAMLI (Family and Medical Leave Insurance) program and the HFWA (Healthy Families and Workplaces Act). Both programs are designed to support employees’ health and family care needs, but they differ in scope and specific provisions.

Let’s break down the differences in these two laws:

FAMLI – Family and Medical Leave Insurance

  • WHEN coverage began: This law was enacted on January 1, 2024. Both employers and employees began contributing to the program as of January 2023.
  • WHO is covered: Colorado workers who have earned at least $2500 within Colorado over the preceding year are eligible for this program.
  • WHAT is covered: Covered Colorado workers may receive up to 12 weeks of leave per year for the following reasons:
    • Bond with a new child within first 12 months of birth or placement
    • Care for their own serious health condition
    • Care for a family member’s serious health condition
    • Care for the arrangements of a family member’s military deployment
    • Care for the immediate safety needs and impact of domestic violence and/or sexual assault

Those dealing with pregnancy or childbirth complications may receive an additional four weeks for a total of 16 weeks per year.

2025 Updates: Since FAMLI benefits are subject to federal income tax, claimants will now have the option to withhold 10% federal income tax from their benefits.
Don’t Forget: Employers must provide their total employee headcount via the FAMLI portal by February 28, 2025 My FAMLI+ Employer | Family and Medical Leave Insurance

HFWA – Healthy Family and Workplaces Act

  • WHEN coverage began: Originally passed in 2020 in response to Covid-19, this law was expanded on August 7, 2023, to give Colorado workers additional access to accrued paid sick leave.
  • WHO is covered: The program requires that all employers, regardless of size, provide paid sick leave to their employees. Employees working less than 30 days a year and independent contractors are excluded.
  • WHAT is covered: Colorado workers accrue a minimum of one hour for every 30 hours worked, which may be capped at 48 hours per year. Up to 48 hours can be carried over to the next year. Employees can use sick leave for the following reasons:
    • Mental or physical illness, injury, or health condition
    • Preventive medical care including vaccinations, or medical diagnosis/care/treatment
    • Domestic abuse, sexual or criminal harassment, including medical attention, mental health care/counseling, legal services, or relocation
    • Care for a family member for one of the reasons above
    • Public health emergency when a public official closes the employee’s workplace or school or place of care of the employee’s child.
    • NEW – bereavement or financial/legal needs due to death of family member
    • NEW – due to inclement weather, power/heat/water loss, or other unexpected event, the employee must evacuate their home or care for a family member whose school or place of care was closed

So, when do we apply which law? Here are some key differences:

  • HFWA pays in full whereas FAMLI offers partial wage replacement.
  • FAMLI is funded by employees and employers with benefits managed by the state. HFWA is the employer’s responsibility to track and pay directly to the employee.
  • FAMLI does not offer benefits for bereavement or weather events.
  • FAMLI requires certification of a health care provider to verify the serious health condition. HFWA does not require a medical note and can be used to cover minor illnesses.
  • Employees are not entitled to FAMLI and HFWA at the same time, but employees and employers can agree to use sick leave to top-up FAMLI benefits if together they do not exceed 100% of the employee’s salary.

Keep up with federal, state and local laws with OneDigital’s Leave of Absence Management Toolkit.

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