| Update Applicable to: | Effective Date |
| All Employers in Colorado Regardless of Size | August 7, 2025 – Effective Date January 1, 2026 – Effect for Claims and Premium Decrease |
What happened?
On May 30, 2025, Colorado Governor Jared Polis signed Senate Bill 25-144 into law, amending the state’s Paid Family and Medical Leave Insurance (FAMLI) Act to expand parental leave benefits and revise how employee premiums are set.
Overview:
1. Additional Leave for NICU Parents: Starting January 1, 2026, parents whose newborns require inpatient care in a Neonatal Intensive Care Unit (NICU) may receive up to 12 additional weeks of paid leave. This is in addition to the standard 12 weeks of bonding leave, allowing for a total of up to 24 weeks of paid leave.
2. Premium Rate Adjustments
- The current premium rate of 0.9% of wages per employee remains in place through December 31, 2025.
- Beginning January 1, 2026, the rate will decrease to 0.88%.
- Starting in 2027, the premium will be set annually by the FAMLI Division director, with a maximum cap of 1.2%, based on maintaining at least six months of projected program expenses.
Further guidance on implementation is expected from the Colorado Department of Labor and Employment later this year
Source References
Resources
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