NCLA Position: Oppose unless amended
Approved by voters in 2020, the Colorado Family and Medical Leave Insurance program (FAMLI) provides 90% of weekly wages for covered employees. Wages are drawn from a trust account administered by the state and funded through premiums paid by the employer or split 50/50 with employees. The current premium is equal to 0.90% of employee wages.
Under the program, employees are provided 12 weeks of paid leave (16 weeks under certain circumstances) for serious health concerns, newborn parental leave, to care for a family member or other specific circumstances. Employees must be allowed to retain seniority and pay scale when they return to the same or similar position upon conclusion of the leave period.
SB144 seeks to include neonatal intensive care as a covered condition with an additional 12 weeks of leave. This potentially allows an employee up to 28 weeks of paid leave. The bill would also reduce the premium for 2026 to 0.88% of wages.
NCLA recognizes the tremendous benefit this program provides to employees experiencing medical hardship and long-term advantages of parental care of newborn children. NCLA further supports the addition of neonatal care as a covered circumstance and appreciates the modest reduction in premiums the bill provides.
However, the operational and financial hardship of the program to employers is consequential. A business would either need to backfill workload with existing employees or hire temporary help. Either option adds strain to the workforce and an inevitable loss of productivity. With the potential for one or more employees to claim paid leave of nearly 7 months, the effect on small businesses and those in high skill industries could prove devastating. NCLA seeks to remove the additional paid leave time from the bill.
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