June 2025

 

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Colorado Amends Paid Family Leave Program

07/03/25

Author: ADP Admin/Monday, June 30, 2025/Categories: Compliance Corner , State Compliance Update, Colorado

Colorado has enacted legislation that extends the maximum duration of paid family and medical leave for a parent who has a child receiving inpatient care in a neonatal intensive care unit.  The change applies to claims for benefits arising on or after Jan. 1, 2026.

The legislation also reduces the premiums collected from each employee used to finance the program starting on Jan.  1, 2026.

The Details

Background

By way of background, eligible employees in Colorado may receive up to 12 weeks of leave and wage-replacement benefits in a 12-month period for the following purposes:

  • To care for their own serious health condition;
  • To care for a new child during the first year after the birth, adoption, or placement through foster care of that child;
  • To care for a family member with a serious health condition;
  • Because of any qualifying exigency arising out of the fact that a family member is on active duty (or has been notified of an impending call or order to active duty) in the armed forces; and
  • When the employee or their family member is a victim of domestic violence, stalking, or sexual assault.

Employees with a serious health condition related to pregnancy or childbirth complications may take up to an additional four weeks (16 weeks in total).

Amended Law

Under the amended law, beginning January 1, 2026, employees will be entitled to take an additional 12 weeks (24 weeks total) in a year if they are a parent who has a child receiving inpatient care in a neonatal intensive care unit.

The legislation also changes the premiums financing the program benefits by extending the current premium amount, 0.9 percent of wages per employee, through 2025 and setting the premium amount for the 2026 calendar year at 0.88 percent of wages per employee. For each subsequent calendar year, the Division of Family and Medical Leave Insurance must set the premium on or before Sept. 1 of the preceding year.

Next steps

Colorado employers should review policies and practices to ensure compliance with the changes. Supervisors should also be trained in handling time off requests under the amended law.

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