By Liz Hartsel 

Starting January 1, 2026, Colorado employers will see changes to the Family and Medical Leave Insurance (FAMLI) program, including additional leave for parents with newborns in the neonatal intensive care unit (NICU) and a modest reduction in premium rates.  

Additional 12 Weeks of Leave for NICU Stays 

Under new legislation signed by Governor Polis on May 30, 2025, eligible employees will be entitled to up to 12 additional weeks of paid leave if their newborn child requires inpatient care in a NICU. This new category of leave supplements the existing 12-week FAMLI entitlement, meaning parents could qualify for up to 24 weeks of paid leave in total, or up to 28 weeks if the birthing parent also experiences pregnancy or childbirth complications. This expanded benefit applies to claims filed on or after January 1, 2026.  

2026 Premium Rate Reduction 

In addition to expanded leave eligibility, Senate Bill 25-144 reduces the premium rate for FAMLI contributions. Starting January 1, 2026, the current 0.9% payroll premium will decrease slightly to 0.88%. 

Looking ahead, premiums will be evaluated annually starting in 2027. Future rates will be set by September 1 of the prior year and will be capped at 1.2%. Premiums will continue to be split evenly between employers and employees for companies with 10 or more workers. 

What Colorado Employers Should Do Now 

• Alert human resources and managers to the new leave entitlements 

• Ensure internal leave policies reflect the expanded eligibility 

• Update payroll systems to reflect the new premium rate beginning Jan. 1, 2026 

• Post the new FAMLI notice once the state releases it (expected later this year) 

If you have questions about FAMLI or how these changes will affect your company, please contact Liz Hartsel or another member of the Fortis employment law team.