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Colorado Paid Leave Plan Survives Lawsuit Calling it Illegal Tax

June 21, 2022, 4:29 PM

Colorado’s paid family and medical leave law passes muster under the state constitution’s income tax restrictions, the Colorado Supreme Court ruled, allowing the measure to take effect as scheduled with employer payments to the state beginning Jan. 1, 2023.

The program—enacted by a ballot initiative that voters approved in November 2020—will guarantee paid time off for workers to tend to a new child, their own medical problem, a family member’s serious illness or military deployment, or issues related to escaping domestic violence or sexual assault.

To fund the benefits, employers will be required to pay premiums to the state equaling ...