Earlier this year, Colorado adopted Senate Bill 25-144, expanding its Family and Medical Leave Insurance (“FAMLI”) program to become the first state to provide paid leave for employees taking care of an infant hospitalized in a neonatal intensive care unit (“NICU”).

Beginning January 1, 2026, qualifying employees in Colorado may take up to 12 weeks of paid FAMLI leave to provide care for a newborn child receiving inpatient care in a NICU (“Neonatal Care Leave”). This leave is available only for the duration that the infant remains admitted to a NICU. Neonatal Care Leave is available for parents of the infant (including biological, foster, adoptive or step-parent) and individuals acting in loco parentis to the infant.

Neonatal Care Leave is separate from the existing 12 weeks of paid FAMLI leave available to care for a new child and it does not reduce an employee’s entitlement to other types of paid leave, including bonding leave, after the child is discharged from the NICU. As a result, employees may be eligible for up to a total of 24 weeks of paid FAMLI leave (12 weeks of bonding leave and 12 weeks for time that the newborn is in the NICU). Note that employees with a serious health condition related to pregnancy complications or childbirth complications may also be eligible for an additional four (4) weeks of FAMLI leave.

Employees whose infant received inpatient treatment in a NICU prior to January 1, 2026, or who took FAMLI leave to care for that infant prior to January 1, 2026, are not precluded from taking Neonatal Care Leave after January 1, 2026.

Colorado Senate Bill 25-144 also slightly reduced the amount to be deducted from employees’ wages to finance the wage replacement available under FAMLI from 0.9% of wages to 0.88% of wages for calendar year 2026. For 2027 calendar year 2027 and each calendar year thereafter, the director of Colorado’s FAMLI Division will set the premium on or before September 1st of the preceding year, with a maximum possible premium rate of 1.2% of wages per employee.

Employers with operations in Colorado (or with remote employees working in Colorado) should review and update their leave policies and employee handbooks to incorporate Neonatal Care Leave.

Employers should also stay tuned; although Colorado may be the first, it is likely not the last state to adopt paid neonatal care leave. Similar neonatal care leaves for employees are likely to begin to pop up throughout the country!