Colorado’s paid family and medical leave program (FAMLI) is adding a critical new layer of support for families facing one of the most stressful experiences imaginable: having a newborn in the neonatal intensive care unit (NICU). Starting January 1, 2026, FAMLI will provide an additional 12 weeks of paid leave to eligible parents when their child requires inpatient NICU care.
Here’s what employers need to know about this important expansion.
What’s Changing?
Currently, FAMLI offers up to 12 weeks of paid, job-protected leave for qualifying reasons—including bonding with a new child. But beginning in 2026, if a newborn is admitted to a NICU, a parent may take up to an additional 12 weeks of FAMLI leave, for a potential total of 24 weeks.
This new NICU-specific leave provision was signed into law in 2024 as part of Colorado Senate Bill 24-144 and is designed to address the unique demands families face during extended hospital stays for medically vulnerable newborns.
Why It Matters
Standard parental leave often falls short for families whose infants require critical care. NICU stays can last weeks or even months, and the medical, logistical, and emotional toll on parents is profound. By expanding paid leave:
- Parents gain more time to be present for their newborns during recovery and medical treatment.
- Infant health outcomes may improve, as research supports the benefits of parent-infant bonding in early development.
- Employers support employee well-being, morale, and retention during difficult family circumstances.
This provision reflects a growing recognition that equitable, responsive leave policies need to accommodate a range of family health situations.
What Employers Should Do
The NICU leave expansion doesn’t take effect until January 1, 2026, but it’s not too early to prepare:
- Review and update leave policies to align with the expanded benefit.
- Train managers and HR teams on how to support employees who may request NICU-related leave.
- Work with payroll and leave administrators to track FAMLI usage and ensure compliance once the change is active.
Keep in mind that documentation of the NICU stay will be required, and FAMLI leave must still be used within 12 months of the qualifying event.
How Sparrow Can Help
Leave is complicated, but managing it doesn’t have to be. Sparrow supports employers and employees through every step of the leave journey, ensuring smooth communication, clear documentation, and minimal disruption to your team.