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The Colorado Department of Labor and Employment has adopted additional amendments to the Family and Medical Leave Insurance (FAMLI) program rules. Effective January 1, 2027, the changes address employer account administration, claims procedures, premium assessments, NICU leave documentation, and private plan requirements.
Employers with Colorado employees should review the updates and determine whether operational, payroll, or policy changes are needed before the new rules take effect.
Summary of Key Updates
- The Division may administratively close an employer's MyFAMLI+ account if the employer reports no Colorado wages for four or more consecutive quarters.
- FAMLI benefit applications may be submitted up to 30 days after leave begins.
- Absences are not considered qualifying leave if the employee replaces the missed time with additional work intended to offset the absence.
- The 2027 FAMLI premium rate has been set at 0.86% of employee wages.
- Employers disputing premium assessments, penalties, or interest must generally request reconsideration within 49 days of the due date or assessment.
- Colorado has expanded acceptable documentation for neonatal intensive care unit (NICU) leave by allowing a Neonatal Care Leave Certification Form signed by a health care provider with direct knowledge of the infant's care.
- Claimants receiving NICU leave benefits must provide follow-up documentation when leave ends or risk retroactive denial of benefits.
Private Plan Changes
Several amendments affect employers with approved private plans:
- Employers must continue to report employer size upon registration but are no longer required to provide annual size updates.
- The prior eight-year private plan renewal requirement has been eliminated. Approved private plans will now remain in effect until terminated.
- Following termination of a self-insured private plan, employers generally must remit any remaining account balance to the Division, subject to limited successor-employer exceptions.
- Employers that cease Colorado operations or no longer employ Colorado employees will generally be deemed to have voluntarily terminated their private plan.
- The Division may communicate directly with private plan administrators regarding employer compliance obligations.
Employer Action Steps
Employers with Colorado employees may want to:
- Review internal procedures for FAMLI account maintenance and wage reporting.
- Confirm payroll systems are prepared for the 2027 premium rate.
- Update processes for responding to premium assessments and reconsideration requests.
- Review NICU leave administration procedures and documentation requirements.
- Evaluate private plan compliance practices, particularly regarding plan termination, business transitions, and communications with the Division.
How Alight Supports Employers
Alight Leave Solutions specializes in state and federal leave of absence programs. Alight Leave Solutions monitors leave law developments and agency guidance and will incorporate changes where they affect the administration of leave of absence.
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.
