Starting January 1, 2024, Colorado's workers are set to benefit from the state's paid family leave program, a result of Proposition 118 approved by voters in 2020. The Family and Medical Leave Insurance (FAMLI) program, run by the Colorado Department of Labor and Employment (CDLE), allows workers to access paid leave during significant life events that require time off work.

The FAMLI program caters to various situations, including maternity and paternity leave, medical leave, and caring for a family member with a severe health condition. Individuals can take up to twelve weeks of paid leave—extendable by an additional four weeks for complications related to pregnancy or childbirth.

Parental leave can be taken anytime within the first year following a birth, adoption, or foster care placement.

The program offers flexibility in how the leave is taken, with options for continuous, intermittent, or reduced work schedule leave. Benefits will amount to up to 90% of an employee's average weekly wage, with a cap at $1,100 per week. Lower-wage earners will receive a higher percentage of their wage, while higher-wage earners will receive a lower percentage.

While the benefits will not be subject to state taxes, the FAMLI Division of CDLE stated that it could not provide guidance on federal taxation, advising recipients to expect a 1099-G tax form.

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The program has raised significant concerns among Colorado's business community, who could bear most of the costs of the new law. Businesses with nine or more employees had the option to split the premium 50/50 with their workers or cover the entire amount.

Critics argue that this financial burden could adversely impact small businesses and potentially discourage hiring, especially given the economic strain caused by the pandemic. In addition, some question whether the program's benefits are sustainable over the long term, given its heavy reliance on consistent funding from businesses and employees.