Colorado's Paid Family Leave Premium Rate to Drop to 0.86% in 2027
Colorado's paid family and medical leave insurance premium rate will drop to 0.86% of wages in 2027, the state Department of Labor and Employment announced on October 6, Bloomberg Tax reported. The reduction reflects the program's stronger-than-expected finances as it enters its third year of benefits.
Colorado's FAMLI program, approved by voters in 2020, provides up to 12 weeks of paid leave for new parents, workers with serious health conditions, and caregivers. The premium is split between employers and employees, with small businesses paying a reduced share.
State officials said robust wage growth and lower-than-projected benefit payouts have built up the program's reserves, allowing the rate cut. The current rate is 0.9%; the new 0.86% rate takes effect January 1, 2027.
Business groups welcomed the reduction, while worker advocates noted the program has paid out hundreds of millions in benefits to Colorado families since launching.
(Source: Bloomberg Tax, Colorado Department of Labor and Employment)
Source: Bloomberg Tax, Colorado Department of Labor and Employment
Published by GSM · USA (original Chinese edition)
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