This legislative session, Colorado amended its Family and Medical Leave Insurance (FAMLI) law via Senate Bill 25-144, thus affecting lengths of leave and FAMLI premiums (i.e., taxes) in two ways.
First, the legislature amended FAMLI to provide up to an additional 12 weeks of paid family and medical leave for any parent who has a child receiving care in a neonatal intensive care unit (NICU). This means any parent whose child is in the NICU could receive up to a total of 24 total weeks of paid FAMLI leave (12 weeks of bonding leave and 12 weeks for time that the newborn is in the NICU).
The amendments are clear that this category of leave constitutes “an additional twelve weeks” that will be made available to employees on top of the 12 weeks of FAMLI leave to which they would otherwise be entitled. These changes take effect for any claims arising on or after Jan. 1, 2026, meaning that an employee who has a child in the NICU on or after that date would be entitled to the additional 12 weeks of FAMLI leave.
Second, the amendment slightly lowers the premiums collected from each employee used to finance the wage replacement available under FAMLI. The premium collection will stay at 0.9% of wages per employee for the remainder of 2025, but starting Jan. 1, 2026, the premium amount will decrease to 0.88% of wages per employee. For each subsequent calendar year, the director of the FAMLI Division will set the premium on or before September 1st of the preceding year, with a maximum...
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