The Colorado Department of Labor and Employment (CDLE) has adopted amendments to the Family and Medical Leave Insurance (FAMLI) Program’s regulations, effective January 1, 2026. These updates impact leave reasons, benefit administration, employee obligations, and Private Plan requirements. Below is a summary of some of the notable changes.
Neonatal care leave (NICU leave):
- NICU leave is now a distinct benefit, separate from bonding and other FAMLI leave. Eligible employees (including those standing in loco parentis) may take up to 12 weeks per infant for inpatient NICU care. Leave can be taken in flexible increments and must be reported weekly.
Expanded definitions, eligibility & job protection:
- “Care” for a family member now includes a broad range of support needs. NICU leave qualifies as caring for a family member with a serious health condition for purposes of determining eligibility. Any military leave protected by law counts as “employment” for job protection eligibility.
Documentation & notice:
- NICU leave requires documentation from the treating facility. Employees must notify the FAMLI Division when NICU leave ends and submit documentation within 14 days. Employers must provide FAMLI notices not only at hire or transfer, but also when employees request protected leave under any other family and medical leave laws.
Benefits administration:
- NICU leave may run concurrently with other leaves (FMLA, PTO, etc.). NICU benefits continue even after employment ends. Employers may require FAMLI leave exhaustion before accessing short- or long-term disability, but not as a condition for other legally required leaves.
Private plan rules:
- Payment frequency and tax treatment clarified for Private Plans. Prior noncompliance can affect Private Plan approval. When switching plans, previous plans must pay approved claims with benefit start dates before the change.
Employer action steps:
- Train HR and leave administration staff on new NICU leave provisions, documentation requirements, and expanded obligations.
- Update payroll and reporting systems for new benefit coordination and tax withholding.
- Review Private Plan administration and compliance processes.
- Communicate changes to employees, especially regarding NICU leave, benefit limits, and documentation expectations.
How Alight supports employers
Alight Leave Solutions will update its leave administration services to reflect these recent legislative changes. This includes updates on paid and unpaid family and medical leave offerings, ensuring compliance with state-specific requirements, as well as training our internal teams on the changes.
Disclaimer
This material is provided for general information purposes only and does not constitute legal advice. The information contained in this article reflects the legislative, statutory, and/or regulatory landscape as of the date of publication. Given the evolving nature of laws, regulations, and interpretive and official guidance, portions of this content may no longer be current. Readers should not rely on this content as a substitute for current compliance guidance and should consult the most up-to-date statutes, regulations, and guidance, and/or seek legal advice before acting on any information referenced herein.