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What is Colorado’s New Neonatal Care Leave Law? 

Colorado is the first state to offer employees paid leave to care for a hospitalized infant in the neonatal intensive care unit (NICU). This law went into effect on January 1 of this year and allows eligible employees to take paid leave to support a newborn or an infant receiving intensive care. This new benefit, Neonatal Care Leave, was created through Senate Bill 25-144 and expands the state’s existing Family and Medical Leave Insurance (FAMLI) program. While this legislation is groundbreaking for parents and qualifying employees, it comes with various implications that business owners need to understand.

Family and Medical Leave Insurance 

FAMLI is a government program that ensures Colorado workers have access to paid leave to care for themselves or their family during certain life events. Paid leave through FAMLI has been available since January 1st of 2024. Eligible Colorado employees can take up to 12 weeks of paid leave per year in order to: 

  1. Care for themselves or a family member experiencing a serious health condition. 
  2. Make arrangements for a family member’s military deployment. 
  3. Address the safety needs and impact of domestic violence or sexual assault. 
  4. To bond or care for a new child, including fostered or adopted children. 

FAMLI Vs. FMLA 

FAMLI and the Family and Medical Leave Act (FMLA) are similar pieces of legislation that focus on job-protected sick leave. While they are similar, there are notable differences that Colorado business owners need to be aware of. For example, FMLA is unpaid, job-protected leave, while FAMLI is paid, job-protected leave. Employees are eligible for FAMLI from the first day of employment if they meet the wage requirement, while FMLA only allows employees who work a certain number of hours before providing leave. Finally, FMLA is a federal law, meaning it applies to the entire country, while FAMLI applies to Colorado employees only.  

Neonatal Care Leave Overview 

Neonatal Care Leave is a new and additional type of paid leave under the FAMLI leave law. This leave allows eligible employees to take up to 12 weeks of paid time off while their newborn is receiving inpatient treatment in a NICU or a higher level of neonatal care. This leave only lasts the duration of the child’s NICU stay. Neonatal Care Leave is available to a broad range of caregivers, including biological, adoptive, step, and foster parents. 

Eligibility extends to parents whose infants were born before January 1, 2026, as long as the child remains hospitalized in a NICU on or after the law’s effective date. 

How Neonatal Care Leave Fits Within FAMLI 

Neonatal Care Leave isn’t the only type of leave parents can utilize for paid leave. Under FAMLI, eligible employees can qualify for:   

  1. 12 weeks of Neonatal Care Leave (while the infant is hospitalized) 
  2. 12 weeks of bonding leave after the child is discharged 
  3. Up to four additional weeks if the birthing parent experiences pregnancy or childbirth complications 

As a result, some employees may be eligible for up to 24–28 weeks of paid FAMLI leave in connection with the birth of a child requiring NICU care.  

What Employers Should Do Now 

Employers in Colorado, or those with employees in Colorado, should take proactive steps to ensure compliance with the Neonatal Care Leave policy. These steps could include updating employee handbooks and company leave policies to reflect these regulatory changes. Employers could also provide training and education for employees, so they understand their rights, the policy details, and eligibility requirements. Colorado employers should also consider working with a third-party partner to assist and consult on Neonatal Care Leave compliance efforts. 

A First-in-the-Nation Policy With Broader Implications 

For families facing the stress of a NICU stay, the new law provides meaningful financial stability and time to focus on their child’s health during a critical period. Colorado’s Neonatal Care Leave underscores the state’s commitment to supporting working families during some of their most challenging moments.  

Group Management Services (GMS) can help Colorado business owners navigate Neonatal Care Leave and FAMLI obligations by providing expert guidance, HR support, and compliance assistance. GMS acts as a partner in compliance, HR, employee management, and business efficiency by consulting on regulatory changes, updating employee handbooks, and hosting training sessions on new laws. Employers should take action now and review existing leave policies, educate their teams, and partner with a trusted HR expert like GMS to ensure they are fully compliant and prepared for this expanded leave benefit. Take your first step towards compliance with GMS. Contact us today!