Extension of FAMLI Act in Colorado for NICU Parents, Premium Rate Setting Schedule Clarified

Colorado extended FAMLI paid leave benefits for a parent who has a child receiving inpatient care in a neonatal intensive care unit, by up to 12 weeks in additional the initial 12 weeks of FAMLI leave. This additional leave will become available for claims arising on or after January 1, 2026. In addition to expanding coverage, the law maintained the current premium amount due - 0.9% of wages per employee - through year-end, set the 2026 premium at 0.88% of wages per employee, and requires premiums be set on or before September 1 each year for the subsequent calendar year, based on the following:

• At the end of the year, the balance of the family and medical leave insurance fund (fund) is not less than 6 months' worth of projected expenditures from the fund required for performance of the functions and duties of the Director;
• The volatility of the premium rate is minimized; and
• The premium amount does not exceed 1.2% of wages per employee

Lastly, the bill states that prior to implementing any premium rate adjustments, the department shall issue full refunds to employers that were erroneously overcharged premiums.