Senate Bill 25-074, introduced in the Colorado General Assembly, proposed an exemption to the employment protection requirements under the state's Paid Family and Medical Leave Insurance (FAMLI) program for employers with a workforce comprising 51% or more highly specialized employees. Key aspects of the bill included:
Exemption Criteria:
Employers with a majority (51% or more) of highly specialized employees could apply for an exemption from the mandate to hold an employee's position and maintain health-care benefits during FAMLI leave.
The bill defined "highly specialized employees" as those whose roles:
Involve responsibilities not easily transferable;
Require a specific or unique advanced degree limiting the pool of replacements; or
Require rare or in-demand skill sets.
Application Process:
Employers seeking the exemption were required to apply to the Division of Family and Medical Leave Insurance within the Department of Labor and Employment.
Approved exemptions needed annual reapplication to maintain status.
Implementation Timeline:
The Division was tasked with establishing a standardized application process, with necessary rules to be adopted by March 1, 2026.
Summary
Under current law, when an employee takes leave from a job
pursuant to the state's paid family and medical leave insurance program, the employer is required to hold the employee's job until the employee returns and maintain the employee's health-care benefits during the duration of their leave. Section 1 of the bill creates an exemption from these requirements
for an employer that has a workforce of 51% or more highly specialized employees. The bill requires an employer to apply to and get approval from the division of family and medical leave insurance (division) in the department of labor and employment before the employer can qualify for the exemption. An employer that qualifies must reapply annually to maintain the exemption. Lastly, section 1 defines a highly specialized employee as an employee whose job description or duties:
•
Involve responsibilities that are not easily transferrable;
•
Require a specific or unique advanced degree that limits the pool of replacements; or
•
Require a rare or in-high-demand skill set. Section 2 requires the division to establish a standardized
application process for employers to apply for the highly specialized employees exemption by submitting documentation that proves that the employer has a workforce of 51% or more highly specialized employees. On or before March 1, 2026, the director of the division is required to adopt necessary rules to implement the application process.
