Q1 ’26: Leave Don’t Cost a Thing

Strap in, folks, because the Colorado legislature was busy in late 2025 brewing up some potent changes to their FAMLI program. Effective 1/1/2026 – revisions, clarifications, and more revisions have stirred up the FAMLI regulatory pot. We’ve broken out the significant updates below and hope you find them helpful!

Colorado FAMLI New Program Notice

The FAMLI Division released an updated notice informing employees of their rights under the program. The new notice has information about the 2026 contribution rate and the ability for employees to take neonatal care leave. To remain in compliance, it’s important to update the current displayed notice with the new one. Additionally, employers must provide the updated program notice within 5 days of the following situations:

• Upon hiring
• When an employee transfers to a Colorado location from another state
• Upon learning that a covered individual has experienced or is experiencing a triggering event under the program
• Upon receiving an employee leave request that qualifies under a protected family and medical leave program, such as the Family and Medical Leave Act (FMLA)

You can find the updated program notice here.

Clarification on Benefit Supplementation & Administrator Benefit Payments

Colorado has revised the FAMLI rules to clarify that employers may now require employees to exhaust their FAMLI leave entitlement before using non-statutory, company-provided leave or other disability benefits. Before you throw confetti up in celebration like it’s a Y2K New Year’s party, the regulations clarified that employers cannot require employees to use FAMLI leave before accessing statutory benefits such as FMLA or Colorado paid sick leave.

Employers and employees can mutually agree to supplement an employee’s FAMLI benefit with payments through a disability program or other employer-provided paid leave up to 100% of their usual wage. However, employers are still prohibited from conditioning access to FAMLI leave on first exhausting employer-provided disability or other paid leave benefits. It’s important to note that non-compliance with these rules constitutes interference with an employee’s FAMLI rights.

Lumped in with this supplementation update is an important little detail on benefit payments for employers changing FAMLI plan administrators. An administrator who began paying benefits on a claim prior to an employer’s plan effective date with a new administrator must service the claim until the completion of the approved leave. An example of where this would be applicable is when an employer changes private plan carriers. Additionally, the original plan administrator is responsible for any claims that were submitted retroactively for a leave date that is within the timeframe of the original plan. The original administrator is not responsible for any claims with a leave start date after their plan expires.

Have you ever gotten a pet with your significant other, broken up, and then had to co-parent the pet with them? Yeah, this kind of sounds like the PFML version of that. Awkward stuff.

Appeals Term Definitions

The option to appeal things is appealing. I wish we could all appeal to more things. Darn it. If only a governmental entity put out extensive guidelines on how to appeal something new.

Wait, what? I’m just now stumbling upon an announcement that Colorado has clarified their appeals process for employers and employees to challenge FAMLI claim decisions. This is exactly what we needed. Thanks, Colorado!

Under the current Colorado FAMLI rules, a party negatively affected by a FAMLI claim determination can appeal the decision to the Appeals Unit. A hearing officer with the Appeals Unit would oversee the appeal. You may be wondering what the definitions of “party,” “determination,” and “hearing officer” are in this context. Me too! An officer’s hearing must be impressive to get the name of the hearing officer.

The updated revisions clarify that “determination” is an administrative decision made by the state or a private plan that:

• explicitly or effectively approves or denies all or part of an FAMLI claim;
• imposes fines, fees, penalties, or any other monetary liability;
• identifies an overpayment or requires repayment of benefits;
• awards damages or other remedies;
• denies or grants all or part of the relief requested in an accepted grievance, investigation, or complaint; or
• withdraws the approval of a private plan or finds that a private plan committed a violation of the FAMLI Act or its implementation regulations.
• change the status of a premium account
• deny a request to waive an overpayment
• assess premiums

This list only comprises some examples of the term and is not reflective of every possible instance of a “determination.” The rules also made clear that a Division notice only informing a claimant of an incomplete application or requesting additional information is not considered a “determination.”

The term “party” is defined as any person identified as a party in the rules or with a legally cognizable interest in the appeal’s outcome. Multiple people can be considered a “party” regarding an appeal. The Division and private plan administrators are also a “party.”

A “hearing officer” is an administrative judge within the Appeals Unit.

General Appeal Process Changes

FAMLI is expanding its options to file appeals. Documents for the appeals process can now be sent via an Appeals Unit-approved electronic filing system. Additionally, the Appeals Unit will accept an electronic attestation as a form of signature for filing an appeal.

The revised rules state that the burden of proof is “by a preponderance of evidence.” This means that the aggrieved party must prove that there is a more than 50% chance that what they are claiming is true.

Neonatal Care Amendments

Effective 1/1/2026, Colorado has a new reason that eligible employees can use FAMLI for: neonatal care leave. An employee may receive up to 12 additional weeks of FAMLI leave if their infant is receiving treatment in a neonatal intensive care unit.

New amendments further detail an employee’s ability to use leave for this reason:

• Leave is available to a child’s parents or anyone standing in loco parentis
• Neonatal care leave is distinct from FAMLI leave to care for a new child
• Taking neonatal care leave does not affect an employee’s ability to take other types of FAMLI leave
• Leave may be taken intermittently

Private Plan Rule Amendments

A slew of changes to Colorado FAMLI private plan rules were a part of the 1/1/2026 regulatory amendments. See a list of the key updates below:

• Benefit Payments: Private plans must issue wage replacement benefits within two weeks of a claim being filed and continue payments every two weeks thereafter. A claimant may appeal the plan’s failure to issue payments within two weeks after the claim is filed.
• Information Sharing: Private plan administrators may now share information needed for an employer to comply with federal or state tax laws.
• Appeals: All private plan determinations are appealable directly to the Division. Claimants cannot be required to complete internal carrier reviews before appealing.
• Plan Approval Timing: Approved private plans may take effect no earlier than 60 days after the Division receives a complete application.
• Renewals and Reporting: The annual attestation requirement is not present in the new private plan renewal rules. Additionally, the ability for an employer to switch from quarterly to annual reporting after three years of an approved private plan is now tied to the employer’s timeliness in submitting reporting.

General FAMLI Amendments

The Colorado Department of Labor has been hard at work making modifications to the FAMLI program to be the best it can be for employers and employees. Clearly, that’s why there are so many changes effective 1/1/2026. So many, in fact, that we dedicated a whole section to random bits of important amendment information that may be too small to dedicate a whole article to. Below you can find a list of these sweet little nuggets of Coloradoan wisdom:

• Employers and Employees may challenge the Colorado Department of Labor’s premium assessment. They must first make a request within 49 days after the premium’s due date. The deadline may be extended an additional 49 days in certain situations.
• For calculating an employer’s size to assess their premium responsibilities, the criteria to consider someone “employed” are if they performed any work during a workweek or were on any type of paid or unpaid leave. The amendments now specify that being on protected military leave qualifies an employee to be considered “employed.”
• The Department of Labor must notify an employer if it changes the employer’s size. The size change would be effective on the date the additional premiums reflecting the size change are due.
• An employee on intermittent or reduced schedule FAMLI leave for neonatal care will not have their benefits stopped if they terminate employment or switch employers.
• Leave taken on a reduced schedule requires a static and defined leave schedule

Update 2026 Employee Headcount

All employers with Colorado employees must update their Annual Total Employee Headcount for 2026 in My FAMLI+ Employer, including employers with approved private plans. There is a reminder in your portal messaging center with instructions to help complete this task.

If no update is submitted by February 28, 2026, employers will pay the full 2026 premium rate (.88%) for all employees. Please note the details below:

• Opted-out local governments are the only exception.
• Headcount is not carried over from the prior year.
• Headcount includes all payroll employees nationwide who worked 20 or more calendar workweeks in 2025, regardless of full-time or part-time status.

Payroll/Leave Ops Teams: Submit the 2026 Annual Total Employee Headcount in My FAMLI+ Employer by February 28, 2026.

FAMLI Division Details on Tentative Program Rollout

Maryland’s PFML program is coming soon! It’s had a long road from inception to final implementation, but we’re almost there. To give context as to how long we’ve been waiting for the program, we’ve put together a historically accurate timeline for you:

The Big Bang spread space dust throughout the Cosmos. Space rock clumped together to form Earth in the Milky Way. Dinosaurs roamed Earth. The State of Maryland introduced its PFML program. Humans evolved. Maryland delayed its PFML program. Human agricultural society developed. Maryland delayed its PFML program again. The Industrial Revolution rapidly advanced human society. Maryland delayed its PFML program once more.

Yep, that’s the actual timeline of our universe.

In all seriousness, Maryland’s PFML program is set to begin contributions on 1/1/2027 with a benefit go-live date of 1/3/2028. We have some helpful insights into the program’s inner workings and the rollout timeline leading up to its commencement. See the details below!

• The Department of Labor said it does not plan to introduce any new FAMLI legislation this session and is staying focused on getting the program implemented.
• The Department hopes to finalize the regulations before the session to give stakeholders clarity and issue guidance based on the final rules, though no firm timeline was shared.
• The employer registration system will soft launch between March and early May, starting with employers and later bringing in third-party administrators. The goal during this period is to register roughly the first 1,000 employers. Registration will continue through the summer, followed by a full public launch and marketing push in early fall.
• The Declaration of Intent period will open in mid-fall 2026, and employers will need to upload documentation showing they consulted with a broker before opting into a private plan. Presenting documentation of consulting with a broker is not something we’ve observed with other programs.
• Contributions will begin in January, with the first contribution submissions due in April for employers that have not filed a Declaration of Intent.
• Equivalent plan applications (this is separate and additional to the Declaration of Intent) will open first for self-insured plans in summer 2027, with commercial applications opening once plans receive approval.
• Instead of mandating specific certification forms, the Department plans to provide required fields. The Department confirmed it will accept FMLA forms for applicable claims and expects private plans to do the same to reduce the burden on employees and healthcare providers.
• On the anchor date, the Department said it is working with the date as written in statute and does not plan to change it this year, but is open to future conversations once implementation is underway. The “anchor date” establishes when an employee is eligible for benefits. “Anchor date” is defined as the earlier date on which an application for benefits is complete or when leave begins for a covered individual.

Minnesota Paid Leave is Live!

Benefits and contributions for Minnesota Paid Leave are live as of January 1, 2026. We’re all basking in the glory of paid leave. I can see the confetti, each piece shaped like Minnesota, falling from the sky.

Minnesota employers now have a responsibility to begin remitting contributions to the state and ensuring that eligible employees are directed to the state or a private plan administrator to access job-protected paid leave.

As a reminder, all Minnesota employers must do the following to remain compliant with the program’s requirements:

1. Register an Employer Account with the state. Employers will submit quarterly wage reports, pay paid leave premiums, and designate a Paid Leave Administrator here.
2. Designate a Paid Leave Administrator for your organization within your Employer Account.
3. Create your Paid Leave Administrator Account. The Paid Leave Administrator Account allows your organization to review leave applications, view Paid Leave determinations, access tax filing information, apply for Small Employer Assistance Grants, and request an equivalent plan.

For comprehensive instructions on completing the above steps, click here: https://pl.mn.gov/employers/roles-and-responsibilities

Minnesota Paid Leave Taxable Wage Base

As leave geeks, our team eagerly awaits the announcement of the new social security wage cap each year. This announcement is like our equivalent of New Year’s Day.

We all make t-shirts each year, proudly displaying the new wage cap to commemorate this special day, and wear them to our team meetings.

Obviously, I’m just kidding… maybe.

The new federal social security wage cap for 2026 is $184,500. Typically, state PFML programs will use this number as the maximum taxable wage base for employers when remitting employee contributions to the state. That means employers are not allowed to deduct any percentage of an employee’s wage that exceeds $184,500 in 2026.

Minnesota’s Paid Leave program has adopted a different approach to the taxable wage base. The program is rounding up the Social Security wage cap of $184,500 to $185,000.

Minnesota employers remitting employee contributions cannot deduct more than 0.44% of 0.88% of an employee’s paycheck up to their taxable wage base maximum of $185,000 in 2026.

Just so you know, we will not be making revised t-shirts with $185,000 printed on them.

New Paid Leave Oregon Rules

Oregon has finalized Batch 14 rule updates for Paid Leave Oregon (PLO), introducing 16 rule changes that clarify benefit administration, documentation requirements, equivalent plan coordination, and appeals processes. All 41 pages of the Batch 14 Administrative Order are linked here. Below are the key highlights employers should be aware of:

• Authorized Representatives: New rules clarify who may act on behalf of an incapacitated or deceased claimant, required documentation, expiration of authority, and confirm that only one authorized representative may be recognized at a time.
• Benefit Year Coordination: Strengthened rules prevent employees from exceeding allowable leave when moving between an equivalent plan and the state plan within a 12-month benefit year, including new reporting requirements for intermittent leave.
• Definition Updates: Clarifies the definition of in loco parentis and aligns average weekly wage timing with Oregon’s Unemployment Insurance program.
• Pre-Placement & Pregnancy Leave: Confirms pre-placement leave is limited to 12 weeks per child, and pregnancy-related leave may be taken once per pregnancy.
• Verification Standards: Expanded and clarified documentation requirements for bonding leave, serious health conditions, and safe leave, including when secondary documentation is required. The purpose of the amendments is to ensure the verification requirements for bonding reflect the full range of legally recognized documents used to establish paternity or guardianship and to clarify how a claimant may show an in loco parentis relationship with a child. With regard to serious health conditions, the rule amendment clarifies that verification documentation must be signed by the patient’s health care provider when the claimant is requesting leave to care for a family member, and updates the required information to include the patient’s date of birth, when it differs from the claimant’s.
• Employer Notices: Employers (state plan and equivalent plan) must update required workplace posters when revised versions are issued and ensure delivery to remote employees.
• Equivalent Plan Reporting: Annual aggregate benefit usage reporting requirements are now explicitly defined in the rule and may be submitted by plan administrators.
• Equivalent Plan Withdrawal: Clarifies termination effective dates based on when notice is submitted relative to quarter-end deadlines.
• Appeals Process: Makes permanent a temporary rule allowing the department to represent itself in hearings and clarifies representation for incapacitated or deceased claimants.

Rule Repealed

• Job Protection Rule: PLO job protection rule has been repealed following statutory changes that transfer enforcement authority for job protection, retaliation, and discrimination matters to the Oregon Bureau of Labor and Industries (BOLI).

Equivalent Plan Annual Claim & Financial Reporting

Paid Leave Oregon equivalent plan employers were required to submit their annual benefit utilization and financial report to the state by January 31, 2026. This reporting includes both claim-level data and information related to employee contributions collected during the reporting period.

If you have not yet submitted your equivalent plan annual report, please contact us as soon as possible so we can assist with gathering the required data and completing the state submission.