Colorado General Assembly sets 2026 family leave insurance premium at 0.88% of wages

Colorado's Senate Bill 144 is making waves as it seeks to expand paid family and medical leave benefits for employees across the state. Introduced on April 28, 2025, the bill proposes significant changes to the existing family and medical leave insurance program, particularly enhancing support for new parents and those facing serious health challenges.

At the heart of Senate Bill 144 is the extension of paid leave from 12 weeks to a potential 24 weeks for specific circumstances. This includes an additional four weeks for individuals dealing with serious health conditions related to pregnancy complications or childbirth. Notably, the bill also introduces a groundbreaking provision that allows for an extra 12 weeks of leave for parents whose newborns require inpatient care in a neonatal intensive care unit (NICU). This change aims to provide crucial support during a vulnerable time for families, addressing both health and emotional needs.

The bill mandates that the premium for the family and medical leave insurance fund be set at 0.88% of wages per employee for 2026, with future adjustments made by the director of the division of family and medical leave insurance. The director is tasked with ensuring the fund maintains a balance sufficient to cover at least six months of projected expenditures, while also minimizing volatility in premium rates. However, the premium will not exceed 1.2% of wages, a measure designed to keep costs manageable for employees and employers alike.

Debate surrounding Senate Bill 144 has been robust, with proponents arguing that the expanded leave is essential for supporting families during critical health situations. Critics, however, express concerns about the financial implications for small businesses and the potential strain on the insurance fund. As discussions continue, stakeholders are weighing the economic impact against the social benefits of enhanced family leave.

The implications of this bill are significant, potentially reshaping the landscape of family support in Colorado. Experts suggest that if passed, it could set a precedent for other states considering similar measures, reflecting a growing recognition of the importance of family health and well-being in the workplace.

As the legislative process unfolds, all eyes will be on Senate Bill 144, with advocates hopeful for its passage and the transformative effects it could have on Colorado families.