A detailed breakdown for HR and benefits administrators
When Colorado’s Paid Family and Medical Leave Insurance (FAMLI) program officially went live, employers across the state faced new questions about how this state-mandated benefit interacts with existing coverage—particularly workers’ compensation, disability insurance, and group health benefits.
Now, with 2026 just ahead and a full year of FAMLI experience behind us, it’s the perfect time to evaluate how this program fits into your broader benefits strategy and compliance framework.
🧭 Quick Refresher: What Is FAMLI?
Established under Proposition 118, FAMLI ensures Colorado workers have access to paid leave to care for themselves or loved ones during major life events—such as childbirth, illness, or caregiving for a family member with a serious health condition.
Eligible employees can generally take up to 12 weeks of paid leave, with additional weeks available in specific cases—for example, parents whose newborn is receiving inpatient care in a NICU can receive up to 12 additional weeks beginning in 2026.
FAMLI is funded through shared payroll contributions. In 2026, the total contribution rate is 0.88% of wages, with up to 0.44% deducted from employee pay and the remainder paid by the employer. While most employers participate in the state-run program, some—like many Conexus clients—have opted for a state-approved private plan that meets or exceeds the state’s coverage requirements.
⚖️ FAMLI and Workers’ Compensation: Two Different Safety Nets
While both programs replace income during time away from work, FAMLI and Workers’ Compensation serve distinct purposes:
- Workers’ Comp applies when an employee is injured or becomes ill because of their job.
- FAMLI applies when an employee must take leave for non-work-related reasons, such as a serious personal health condition, pregnancy, or caregiving.
Employees cannot receive both benefits simultaneously for the same period. However, coordination is key—especially for HR and payroll teams ensuring accurate wage replacement and preventing overlap.
💡 Tip: Keep your Workers’ Comp administrator and FAMLI administrator aligned on any concurrent leaves to avoid double payment and ensure compliance.
💰 FAMLI and Disability Benefits: Understanding the Overlap
This is where most confusion arises. Both FAMLI and short-term disability (STD) provide income replacement for medical leave—but they operate under different structures:
| Coverage Type | Funding Source | Applies To | Typical Duration | Coordination Tip |
| FAMLI | Payroll contributions (0.88% total in 2026, split between employer/employee) | Medical, family, safe leave | Up to 12 weeks (+ NICU extension) | Employees may need to choose one benefit at a time; coordinate elimination periods |
| Short-Term Disability (STD) | Employer-sponsored or voluntary coverage | Employee’s own health condition | Typically 6–26 weeks | Align STD start date after FAMLI leave or use STD to supplement partial wage replacement |
| Long-Term Disability (LTD) | Employer or voluntary coverage | Extended personal disability | 6 months+ | No impact from FAMLI but review plan language for offsets |
For many employers, pairing FAMLI with STD ensures continuous support for employees facing longer recoveries. Employers offering private FAMLI plans—like those available through Conexus Insurance Partners—can customize coordination and administration to reduce confusion and paperwork.
🩺 FAMLI and Health Benefits: Maintaining Coverage During Leave
Under Colorado’s FAMLI rules, employers must maintain the employee’s health benefits during approved leave as if the employee were actively working. That means:
- Continue your share of the employer premium contribution.
- Employees remain responsible for their share of premiums while on leave.
- Coverage cannot be canceled or reduced during FAMLI leave unless the employee fails to pay their portion after required notice.
For HR teams, it’s crucial to outline these provisions clearly in your leave policies and employee handbook, so there are no surprises during extended absences.
🧩 How Private FAMLI Plans Simplify Integration
Conexus offers a state-approved private FAMLI plan, designed to help employers meet their legal obligations while streamlining how benefits work together. Employers who already provide insured products—such as voluntary life, dental, vision, or disability—can integrate FAMLI seamlessly into existing programs.
Benefits of a private FAMLI plan include:
- Simplified claims coordination with existing benefit carriers
- More control over communication and administration
- Potential cost savings and better employee experience
✅ Key Takeaways for 2026
- Review your policies: Ensure your handbooks and leave policies reflect how FAMLI interacts with other benefits.
- Audit payroll and contributions: Confirm deductions and employer matches are accurate.
- Communicate clearly: Employees should know when to file FAMLI vs. STD vs. Workers’ Comp claims.
- Consider private options: A private FAMLI plan can simplify administration and align with your culture and benefits philosophy.
💬 Let’s Simplify Your FAMLI Strategy
At Conexus Insurance Partners, we help Colorado employers design benefits programs that work together—not against each other. Whether you’re evaluating compliance, coordinating multiple coverage types, or considering a private plan, we’re here to guide you through it.
📞 Contact us to learn how a private Colorado FAMLI plan can integrate seamlessly with your workers’ comp, disability, and health benefits.