A Bill for an Act
Page 1, Line 101Concerning creating an exemption to the employment
Page 1, Line 102protection requirements under the "Paid Family and
Page 1, Line 103Medical Leave Insurance Act" for an employer that
Page 1, Line 104has a workforce consisting of a majority of highly
Page 1, Line 105specialized employees.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
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.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 8-13.3-509, amend (8); and add (9) as follows:
Page 2, Line 38-13.3-509. Leave and employment protection - exceptions - definition. (8) This section does not apply to:
Page 2, Line 4(a) An employee of a local government that has elected coverage pursuant to section 8-13.3-514; or
Page 2, Line 5(b) (I) On and after June 1, 2026, an employee who works
Page 2, Line 6for an employer that has a workforce comprised of fifty-one percent or more highly specialized employees.
Page 2, Line 7(II) Pursuant to a standardized application process
Page 2, Line 8adopted by the division in accordance with section 8-13.3-516 (8),
Page 2, Line 9an employer that has a workforce comprised of fifty-one
Page 3, Line 1percent or more highly specialized employees must apply to and
Page 3, Line 2get approval from the division to qualify for the highly
Page 3, Line 3specialized employees exemption set forth in subsection (8)(b)(I)
Page 3, Line 4of this section. An employer that the division qualifies for the exemption must reapply annually to maintain the exemption.
Page 3, Line 5(9) As used in this section, "highly specialized employee" means an employee whose job description or duties:
Page 3, Line 6(a) Involve responsibilities that are not easily transferable to other employees without significant training;
Page 3, Line 7(b) Require a specific or unique advanced degree,
Page 3, Line 8certification, or technical qualification that limits the pool of potential replacements for that job; or
Page 3, Line 9(c) Require a skill set that is rare or in high demand, as
Page 3, Line 10evidenced by long average hiring times for similar jobs and regional or industry-specific shortages of qualified applicants.
Page 3, Line 11SECTION 2. In Colorado Revised Statutes, 8-13.3-516, add (8) as follows:
Page 3, Line 128-13.3-516. Family and medical leave insurance program -
Page 3, Line 13rules. (8) (a) The division shall establish a standardized
Page 3, Line 14application process by which an employer may apply annually to
Page 3, Line 15the division for the highly specialized employee exemption set forth in section 8-13.3-509 (8)(b).
Page 3, Line 16(b) The standardized application process must require an
Page 3, Line 17employer applying for the highly specialized employee exemption
Page 3, Line 18to submit documentation establishing that fifty-one percent or
Page 3, Line 19more of the employer's employees are highly specialized, as
Page 3, Line 20defined in section 8-13.3-509 (9).
Page 4, Line 1(c) On or before March 1, 2026, the director shall adopt
Page 4, Line 2necessary rules to implement the standardized application process.
Page 4, Line 3SECTION 3. Act subject to petition - effective date. This act
Page 4, Line 4takes effect at 12:01 a.m. on the day following the expiration of the
Page 4, Line 5ninety-day period after final adjournment of the general assembly; except
Page 4, Line 6that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 4, Line 7of the state constitution against this act or an item, section, or part of this
Page 4, Line 8act within such period, then the act, item, section, or part will not take
Page 4, Line 9effect unless approved by the people at the general election to be held in
Page 4, Line 10November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.