The leave landscape continues to evolve as states refine paid family and medical leave programs. This update covers Colorado and Minnesota, highlighting what’s changing, when it takes effect, and what employers should do now to stay compliant.
Colorado — Family and Medical Leave Insurance (FAMLI)
What’s changing effective January 1, 2026
Colorado enacted Senate Bill 25144, expanding FAMLI benefits to include an additional 12 weeks of paid leave for parents with a child receiving inpatient NICU care and adjusting premium rates beginning in 2026.
- New NICU benefit: Eligible employees may take an extra 12 weeks of paid leave for NICU inpatient care, on top of existing benefits—up to 24 weeks total, or 28 weeks if the employee qualifies for the additional 4 weeks related to pregnancy/childbirth complications (for claims filed on/after January 1, 2026).
- Premium rate timeline: The current 0.9% rate remains through December 31, 2025; it drops to 0.88% starting January 1, 2026.
- Future rate-setting: Beginning in 2027, the FAMLI Division will set the annual premium rate by September 1 of the preceding year.
Employer action steps:
- Update policies and employee materials to reflect the NICU-specific leave and maximum durations; add FAQs for caregivers of medically fragile newborns.
- Reconfigure payroll for the 0.88% premium rate starting January 1, 2026 and plan for annual rate announcements each September.
- Train HR and managers on eligibility, documentation, and claims workflow for NICU-related leave requests.
Minnesota — Paid Family and Medical Leave (PFML)
What’s changing (key dates in 2025 – 2026)
Minnesota Department of Employment and Economic Development (MN DEED) finalized PFML administrative rules, launched a benefits calculator, published required employer postings, and clarified contributions and processes as the program prepares to accept leave claims and pay benefits starting January 1, 2026.
- Program overview: Eligible employees may receive up to 12 weeks of medical leave and 12 weeks of family leave (maximum 20 weeks combined in a 12-month period) with job protection and partial wage replacement; funded via employer and employee contributions; contributions, leave claims, and benefits begin January 1, 2026.
- Posting and notice deadline: Employers must post the official PFML notice and provide written information to employees by December 1, 2025; MN DEED plans to publish materials on its website to further assist employers in meeting program obligations.
- Payroll and reporting: Deductions start January 1, 2026; first premium payments and quarterly wage detail reports are due April 30, 2026. Initial premium rate is 0.88% of taxable wages, with employers paying at least half; small employers may qualify for reduced rates or administrative grants.
- Finalized administrative rules: Finalized administrative rules address coverage elections and MN DEED accounts, seasonal employee coverage clarifications, new employee notice/attestation requirements (with a seven-day employer response window), leave schedule changes (early returns, extensions, intermittent to continuous and vice versa), supplemental pay reporting and benefit coordination/offsets, leave certification requirements, and private plan requirements (reporting, plan amendments/terminations, surety bond for self-insured plans, posting, records, intermittent leave administration, and employee access to claim information).
Employer action steps:
- Refresh policies, forms, and manager guides to reflect final administrative rule guidance, specifically notice/attestation requirements, certification standards, and leave schedule change protocols.
- Configure payroll/HR Systems: For contributions, supplemental pay tracking, and timely reporting; set reminders for December 1, 2025 postings and April 30, 2026 filings and contribution remittance.
- Establish an MN DEED notice intake process and ensure teams respond within seven calendar days to MN DEED information requests.
- If using a private plan, audit compliance (e.g., reporting, bond if self-insured, records retention and confidentiality procedures, employee access, etc.) and update plan documents and employee notices.
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 article is for informational purposes only and does not constitute legal advice. Employers should consult legal counsel for guidance specific to their organization.
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