Key Points:
- Colorado added paid Neonatal Care Leave to its FAMLI program effective January 1, 2026, covering parents of newborns admitted to a neonatal unit or a higher level of care.
- Eligible parents may take up to 12 weeks of paid Neonatal Care Leave, available only while the newborn remains hospitalized.
- Neonatal Care Leave is in addition to existing FAMLI benefits.
New Neonatal Care Leave
On January 1, 2026, Colorado became the first state in the country to offer paid Neonatal Care Leave.[1] Colorado’s Family and Medical Leave Insurance Program (FAMLI) already afforded eligible employees:
Up to 12 weeks of paid leave each year to care for themselves or their family members during circumstances that require time away from work — such as welcoming a new family member (i.e., Bonding Leave) or caring for oneself or a family member due to an injury or illness; and
Up to four additional weeks of paid leave for pregnancy and childbirth complications.
Now, parents of infants admitted to a neonatal unit or a higher level of care may take up to an additional 12 weeks paid Neonatal Care Leave to spend time with their newborn. “Parent” is defined broadly to include biological parents, foster parents, stepparents, adoptive parents, or individuals acting in loco parentis.
Parents are eligible to take Neonatal Care Leave only while their newborn is admitted to a neonatal unit (or higher level of care) and receiving intensive care. Once the newborn is discharged from the hospital/neonatal unit, the parent must initiate a separate claim for FAMLI leave if they wish to utilize additional paid leave.
For example, 12 weeks of Bonding Leave is available to all parents. Additionally, where the parent experienced a serious health condition related to pregnancy or childbirth, they may initiate a separate FAMLI claim for up to four additional weeks for their own postpartum medical recovery. In total, an employee who meets the criteria for Neonatal Care Leave, Bonding Leave, and leave related to childbirth complications may be entitled to up to 28 weeks of paid leave across these FAMLI benefits.
Premiums
FAMLI premiums for 2026 are lowered to 0.88% of an employee’s wages, down from 0.90% of wages. The State’s fiscal analysts project that this change will save Colorado workers and employers approximately $35 million in the next fiscal year.[2]
Employers should update their FAMLI policies and begin using the new FAMLI Program Notice, which was updated in December 2025. The new notice reflects the 2026 premium rate and notifies employees of the availability of paid Neonatal Care Leave. Updated program notices and additional resources for employers are available on the FAMLI Program’s website.
[1] Colorado First in the Country to Offer Paid Neonatal Care Leave | Family and Medical Leave Insurance
[2] Another National First: Paid Leave for Neonatal Intensive Care Unit Parents | Family and Medical Leave Insurance
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