Colorado General Assembly Introduces New Bills Relating to FAMLI Benefit Durations, Premium Amounts, and Job Reinstatement Rights

February 13, 2025

Colorado General Assembly Introduces New Bills Relating to FAMLI Benefit Durations, Premium Amounts, and Job Reinstatement Rights

Rob Thomas, Of Counsel

            As part of the Colorado General Assembly’s 2025 Regular Session, the Colorado Senate has introduced two new and very different bills potentially affecting both employee and employer rights and responsibilities under Colorado’s Paid Family and Medical Leave Insurance Act and program (“FAMLI”).  One bill, SB25-144, seeks to provide additional leave benefits under certain circumstances and to set certain parameters on the Director of the FAMLI Division’s establishment of premium amounts for the program in future years.  The other, SB25-074, seeks to carve out certain employers who employ a majority of “highly specialized employees” from FAMLI’s employment protection requirements.

SB25-144 – “Concerning Changes to the ‘Paid Family and Medical Leave Insurance Act’”

            FAMLI currently provides that qualifying employees may receive up to twelve weeks of paid family and medical leave for the Act’s enumerated purposes per year, but covered individuals with a serious health condition related to pregnancy or childbirth complications may take an additional four weeks of paid leave, totaling sixteen weeks.  SB25-144, if passed, would allow employees to take an additional twelve weeks of paid leave beyond FAMLI’s ordinary twelve-week allotment if the employee is a parent who has a child receiving inpatient care in a neonatal intensive care unit (“NICU”).[1]  Accordingly, such employees could qualify for paid leave benefits under FAMLI for up to 24 total weeks under such circumstances.  It is unclear based on the text of the bill whether the additional four weeks of leave relating to pregnancy or childbirth complications could or would stack with the bill’s proposed additional twelve weeks to care for a child receiving NICU care but, at least based on the bill’s additions, an employee could receive twelve weeks of FAMLI leave for qualifying reasons, plus an additional four weeks of leave due to pregnancy complications, and then an additional twelve weeks of leave for NICU care after childbirth—totaling 28 weeks of potentially-protected paid family and medical leave under the program in one year.

            SB25-144 also proposes amendments to the premium language in FAMLI—specifically premium amounts in future years.  Currently, the Director of the FAMLI Division has the authority to set premium amounts based on a specified formula in the FAMLI statutes.  The bill would require the premium rate to remain 0.9% of wages per employee in 2025, with the premium amount to decrease to 0.88% of wages per employee in 2026.  Thereafter, the Director would set premium rates such that the rate would result in a fund balance which is not less than six months’ worth of projected expenditures from the FAMLI fund required for the plan’s operation.  But, the Director could not set the rate higher than 1.2% of an employee’s wages, and the Director would otherwise be obligated to minimize the volatility of premium rates moving forward. 

SB25-074 – “Highly Specialized Employment Leave Protection Exemption”

            Currently, FAMLI provides that if an employee has been employed with his or her current employer for at least 180 days prior to taking FAMLI leave, then when the employee returns from leave, the employee is entitled to be restored to the same or equivalent position the employee held prior to taking leave (subject to certain limited exceptions under FAMLI regulations).  SB25-074 seeks to carve out an exemption from FAMLI’s job protection provisions for certain employers whose workforce consists of a majority of “highly specialized employees.”[2]  Under the proposed amendments, a “highly specialized employee” would be an employee whose job description or duties 1) involve responsibilities that are not easily transferable to other employees without significant training; 2) require a specific or unique advanced degree, certification, or technical qualification that limits the pool of potential replacements for the job; or 3) require a skill set that is particularly rare or in high demand.  Under the bill, employers seeking to take advantage of this exemption would need to apply for the exemption with the Division annually and submit proof that the majority of employees are highly specialized employees per a standardized application process to be established by the Division. 

            Note that while SB25-074 provides that all of Section 8-13.3-509 of the FAMLI Act would not apply to qualifying employers under the “highly specialized employees” exemption, Section 8-13.3-509 also prohibits retaliation for exercising rights under FAMLI and also prohibits employers from counting paid FAMLI leave in a manner that would result in discipline, discharge, or other adverse actions.[3]  It is unclear from the text of the bill whether the “highly specialized employee” exemption would apply to foreclose any retaliation claims or other similar claims unrelated to job reinstatement under Section 8-13.3-509 by employees of exempted employers.  Similarly, based on the wording of the bill currently, if an employer qualifies for the exemption, then no employee of the employer would be entitled to job protection under FAMLI—regardless of whether an employee is “highly specialized” or not.     

Employer Considerations

            As of today, SB25-144 is currently in its nascency and has only been recently assigned to the Business, Labor & Technology committee.  Conversely, SB25-074 was assigned to the State, Veterans & Military Affairs committee where, on February 11, 2025, the bill was postponed indefinitely.  The seemingly swift defeat of SB25-074’s pro-employer measures is yet another reminder of the General Assembly’s pro-employee stance in recent years, which does not appear to be changing any time soon.  Campbell Litigation will continue to monitor these bills and others as they move their way through the legislative process.      

[1] See https://leg.colorado.gov/sites/default/files/documents/2025A/bills/2025a_144_01.pdf for the full text of SB25-144. 

[2] See https://leg.colorado.gov/sites/default/files/documents/2025A/bills/2025a_074_01.pdf for the full text of SB25-074. 

[3]Colo. Rev. Stat. § 8-13.3-509(4)-(5).