On May 30, Colorado Governor Polis signed Senate Bill No. 144 into law, amending the paid family and medical leave (PFML) program to include an additional parental leave entitlement and change how the premium rate is set. The law goes into effect 90 days after legislative adjournment, or August 7, 2025.
For claims starting on or after January 1, 2026, a covered individual is entitled to an additional twelve weeks of PFML benefits if their child is receiving inpatient care in a neonatal intensive care unit (NICU), for the entire duration of the child’s stay. The Colorado Department of Labor and Employment is expected to amend its rules later this year and provide additional guidance on the fine details of how this additional leave entitlement will be implemented.
According to a medical study, NICUs nationwide admit 10-15% of all babies born. NICUs admit most infants within 72 hours of birth, and they have an average stay of 13.2 days. Reasons for admission to the NICU include preterm birth, congenital birth defects, maternal complications of pregnancy, and breathing irregularities and infections.
Additionally, the new law amends how the premium rate is set for the PFML program. The current rate of 0.09% of wages per employee is extended until December 31, 2025. For the 2026 calendar year, the premium rate will be set at 0.88% of wages per employee. For the 2027 calendar year and each subsequent calendar year, the premium rate will be set on or before September 1 of the preceding year, not exceeding 1.2% of wages per employee. The premium rate will be determined based on the state PFML fund maintaining a balance that covers at least six months of expected expenses.
FINEOS can help with your state leave programs
Using modern insurance technology solutions like the FINEOS Platform can help insurance carriers remain compliant and competitive when leave legislation is revised and new products are authorized by governing jurisdictions. Learn more about how a modern, integrated disability and absence management (IDAM) solution can help your organization adapt to this rapidly evolving market and remain in compliance.
