By: Kim Adamson
On May 30, 2025, Governor Jared Polis signed SB 25-144, known as the “Concerning Changes to the Paid Family and Medical Leave Insurance Act,” which takes effect on January 1, 2026. The law amends Colorado’s Family and Medical Leave Insurance Act (FAMLI) to provide up to 12 additional weeks of paid leave for any parent of a newborn in a neonatal intensive care unit (NICU). This change allows parents with a child in the NICU to receive a total of 24 weeks of paid FAMLI leave. Essentially, parents can take up to 12 weeks of paid leave through FAMLI for neonatal care while their child is in the NICU, plus the full 12 weeks of bonding leave after the child’s discharge from the hospital. Colorado is the first state in the nation to support parents with newborns in the NICU by offering this extra paid leave.
This amendment to the law also lowers premiums and makes coverage more affordable for all Colorado workers and employers, reducing the rate from 0.9% to 0.88% of wages per employee, effective January 1, 2026. The new law also grants the FAMLI Division the authority to manage premiums and minimize year-to-year fluctuations. Each year, the FAMLI Division will set the premium on or before September 1st of the previous year, with a maximum rate of 1.2% of wages per employee.
FAMLI recently sent an email to Colorado employers advising that no action is required at this time. The FAMLI Division is in the process of drafting rules regarding the new neonatal care leave type and will hold a public hearing on those rules before they are adopted. Public hearings and discussions about the details will take place this fall. Watch for more information from FAMLI on their website: famli.colorado.gov/employers/my-famli-employer.
Sources:
- colorado.gov/bills/sb25-144
- colorado.gov/another-national-first-paid-leave-for-neonatal-intensive-care-unit-parents
- org/amended-colorado-paid-famli-law-addresses-neonatal