On May 30, 2025, Colorado enacted Senate Bill 144 (SB 144), introducing several significant updates to the state’s Paid Family and Medical Leave Insurance (FAMLI) program. The new provisions take effect August 6, 2025, and will impact both leave entitlements and the program’s funding model.
Key Changes
Under the amended law, covered employees will be eligible for up to an additional 12 weeks of leave when an eligible employee has a child receiving inpatient care in a neonatal intensive care unit, bringing total leave up to 24 weeks, for claims that begin January 1, 2026, or later.
In addition to expanding leave access, SB 144 lowers the program’s premium structure. The contribution rate for the 2026 calendar year will be 0.88 percent of wages, down from the current rate of .9 percent of wages.
Next Steps for Employers
To comply with these changes, employers should begin reviewing and updating applicable leave policies and procedures, employee handbooks, and payroll systems. It is important to clearly outline eligibility criteria and explain how extended leave for qualifying conditions differs from standard leave. Human resource teams should also ensure that internal processes for tracking leave duration and coordinating benefits are updated to account for the expanded entitlements.
Training for managers and human resources personnel should also be conducted to ensure consistent application of the revised rules. Employers should also communicate the upcoming changes to employees in advance of the effective date to minimize confusion and ensure awareness of the new benefits.
Further guidance is expected from the Colorado Department of Labor and Employment in the coming months. Employers are encouraged to monitor official updates and begin preparing now to ensure timely compliance with the expanded leave provisions. Early planning will support implementation and reinforce the organization’s commitment to supporting employees during critical life events.
HR Works Can Help
Managing employee leaves of absence is overwhelming and the various laws can be difficult to navigate, especially when leave is not your primary focus. The experts at HR Works can manage the complexities of compliance when it comes to all the changing state leave laws and more. To learn more about these services and how to leverage our compliance expertise and support, please contact us at info@hrworks-inc.com or call 1-877-219-9062.
