In 2020, Colorado voters approved Proposition 118, creating the Family and Medical Leave Insurance (FAMLI) program and establishing the Division of Family and Medical Leave Insurance (the Division) within the Colorado Department of Labor to administer the program. FAMLI benefits became available on January 1, 2024.
In short, FAMLI generally provides Colorado workers with access to paid leave for up to twelve (12) weeks to take care of themselves or their family during life circumstances that pull them away from their jobs. For example, employees can take paid leave for the birth or adoption of a child, serious health conditions for the employee or their family member, active-duty military service, domestic abuse, sexual assault, assault, or stalking. An additional four weeks of leave is available for individuals with a serious health condition related to pregnancy complications or childbirth complications. The program is funded by fees or premiums paid by employees and their employers.
During the 2025 Regular Legislative Session, the Colorado General Assembly passed SB25-144, amending FAMLI. This article summarizes SB25-144 and identifies steps that employers should consider taking to comply with the new law.
SB25-144
SB25-144 [1] extends the duration of paid family and medical leave, up to an additional twelve (12) weeks, for a parent who has a child receiving inpatient care in a neonatal intensive care unit. The new law also revises the premiums that finance program benefits. It extends the current premium amount of 0.9% of wages per employee through 2025 and sets the premium amount for the 2026 calendar year at 0.88% of wages per employee. For each subsequent calendar year, the Division director is required to set the premium on or before September 1 of the preceding year so that: (1) at the end of the year, the balance of the family and medical leave insurance fund is not less than six (6) months’ worth of projected expenditures from the fund required for performance of the functions and duties of the director; (2) the volatility of the premium rate is minimized; and (3) the premium amount does not exceed 1.2% of wages per employee.
SB25-144 is in effect now and is codified at Colo. Rev. Stat. §§ 8-13.3-505, 8-13.3-507.
What Next?
Employers should read and familiarize themselves with the new law and develop and implement a compliance plan. Among other things, employers should consider reviewing company policies, procedures, employee handbooks, and forms, and update them to account for the extended leave time available if an employee has a child receiving inpatient care in a neonatal intensive care unit. In addition, employers should consider auditing their payment and withholding procedures and policies in anticipation of FAMLI premium rate changes in 2026 and thereafter.
Our Team
BHGR’s Employment Group is well-versed in state and federal employment laws and regulations and routinely counsels our clients on compliance issues. In addition, our attorneys assist our clients with compliance efforts, including drafting and developing new workplace policies, procedures, and handbooks consistent with state and federal regulations. Our attorneys also provide compliance and job training seminars for our clients’ employees.
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