Colorado FAMLI program introduces expanded leave and lower premiums for Mesa County employers

Candace Carnahan, President/CEO at Grand Junction Area Chamber of Commerce
Candace Carnahan, President/CEO at Grand Junction Area Chamber of Commerce - Grand Junction Area Chamber of Commerce
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As the Colorado Family and Medical Leave Insurance (FAMLI) program develops, employers in Mesa County are facing new requirements for 2026. Changes to the program impact how businesses manage workforce planning, payroll, and compliance.

A significant update this year is the expansion of leave benefits for parents whose child needs care in a neonatal intensive care unit. Under the revised state law, eligible employees may receive up to twelve additional weeks of FAMLI leave beyond the standard benefit. This means employers must recognize that leave durations can differ based on circumstances and should prepare staffing plans for potentially longer absences.

The FAMLI premium rate is also changing. In 2026, the combined employer and employee contribution rate will decrease from 0.9 percent to 0.88 percent of wages. Employers are advised to update their payroll systems with this new rate and ensure that cost-sharing policies are consistently applied.

Another area of interest is federal tax reporting related to FAMLI medical leave benefits. Many employers expected new federal requirements tied to payroll taxes; however, the Internal Revenue Service has postponed these changes until 2027. For now, employers can continue using current federal tax reporting and withholding processes throughout 2026 without penalty. This delay offers more time for planning and system updates but does not remove future compliance responsibilities.

The Grand Junction Area Chamber of Commerce stated: “The Grand Junction Area Chamber of Commerce will continue to share information and elevate employer perspectives as these discussions continue.”

Employers in Mesa County are encouraged to stay informed about ongoing changes to FAMLI regulations by reviewing policies, confirming payroll practices, and preparing for further adjustments in coming years.



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