Colorado FAMLI NICU | AbsenceSoft Documentation

Overview

Starting January 1, 2026, Colorado expands its Family and Medical Leave Insurance (FAMLI) program to provide additional support for parents whose newborns require Neonatal Intensive Care Unit (NICU) care.

What's new: Parents can receive up to 12 additional weeks of paid leave and job protection specifically for NICU care - on top of their standard FAMLI benefits.

For detailed legislative requirements, see our Legislative Guidance.

How to Use

Throughout this guidance, look for these labels to quickly identify what actions may be needed:

Automatic: System handles this automatically, no action needed

Manual Action or Tracking Required: User must complete this action or track elsewhere

Configuration Note: How the policy is set up in the platform

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Best Practice: AbsenceSoft recommendation for optimal management

How AbsenceSoft Manages NICU Leave

AbsenceSoft uses two separate policies that work together to provide NICU benefits:

Policy Name	Policy Code	Policy Type	Purpose
Colorado FAMLI Neonatal Intensive Care Unit - Paid Leave	CO-FAMLI-NICU-PL	Paid Leave	Provides wage replacement during NICU care
Colorado FAMLI Neonatal Intensive Care Unit - Job Protection	CO-FAMLI-NICU-JP	Job Protection	Protects employee's position during NICU care

Configuration Note: These NICU policies are separate from and in addition to standard Colorado FAMLI policies.

Manual Action Required: Both policies must be manually added to qualifying cases.

Manual Action Required: NICU leave is only available while the child is receiving inpatient NICU care. Track admission and discharge dates carefully following the state’s decisions on the claim. Employers should contact the state directly for any discrepancies/overentitlements.

Automatic: AbsenceSoft automatically generates a todo on Pregnancy, Bonding, and Adoption cases in Colorado to ask:

Was child admitted to NICU?
- if yes, the todo prompts you to manually add the Colorado FAMLI Neonatal Intensive Care Unit policies to the case

What Changed on January 1, 2026?

Before (Pre-2026)

Parents with newborns in the NICU could only use their standard 12-week FAMLI entitlement. Once exhausted, no additional leave was available—even if their child remained hospitalized.

After (January 1, 2026+)

Parents now have access to separate entitlements:

Standard FAMLI leave: 12 weeks for bonding, pregnancy, or adoption/foster care
NICU-specific leave: Additional 12 weeks while child is in NICU
Total possible leave: Up to 24 weeks (or 28 weeks with pregnancy complications)

Leave Entitlements by Absence Reason

Absence Reason	Standard FAMLI	NICU Addition	Maximum Total
Pregnancy/Maternity	12 weeks	+12 weeks	24 weeks
Pregnancy with Complications	16 weeks	+12 weeks	28 weeks
Bonding	12 weeks	+12 weeks	24 weeks
Adoption/Foster Care	12 weeks	+12 weeks	24 weeks

Configuration Note: NICU policies apply only to Pregnancy/Maternity, Bonding, and Adoption/Foster Care cases. Family health condition cases do not qualify for NICU benefits.

Platform Workflow & Required Actions

Identifying NICU Cases

Automatic: The platform generates a to-do task on all qualifying Colorado cases:

Triggers on all Pregnancy/Maternity, Bonding, and Adoption/Foster Care cases in Colorado
Due dates:
- Pregnancy/Maternity: Due on Delivery Date
- Bonding: Due on Delivery Date
- Adoption/Foster: Due on Adoption/Placement Date
Question asked: "Was the child admitted to the NICU?"

Automatic: If user answers "Yes" to NICU admission, system generates a reminder to add the NICU policies.

Adding NICU Policies

Manual Action Required: When a child requires NICU care, users must manually add both policies:

Colorado FAMLI Neonatal Intensive Care Unit - Job Protection (CO-FAMLI-NICU-JP)
Colorado FAMLI Neonatal Intensive Care Unit - Paid Leave (CO-FAMLI-NICU-PL)

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Best Practice: Add both policies at the same time to ensure complete coverage.
Note: For consecutive cases, job protection eligibility should be determined as of the start of the case that included the original CO-FAMLI policy. Employees must meet 180-day tenure with their employer.

Managing Non-Concurrent Policies

Configuration Note: Colorado FAMLI and NICU policies are configured to run non-concurrently (they cannot overlap). Warning messages will also appear to ensure case managers are alerted the CO-FAMLI-JP/CO-FAMLI-PL and CO-NICU policies cannot be approved for the same periods.

Manual Action Required: Users must manage policy transitions:

During NICU Stay:

Approve NICU policies for dates based on the State’s determination (usually the hospitalization period)
Deny standard Colorado FAMLI policies for the same period
Document reason: "Child receiving NICU care - using NICU-specific entitlement"

After NICU Discharge:

End NICU policies on discharge date using the State’s determination.
Approve standard Colorado FAMLI policies from discharge date forward
Document transition: "NICU care ended - transitioning to standard FAMLI"

Tracking Required: The state program will provide determinations based on the following:

NICU admission date
Expected/actual discharge date
Policy transition dates

Exhaustion of NICU with continued care needed:
How items should be tracked following exhaustion of NICU care, require the employee’s coordination with the state on their claim.

Tracking Required: The state program will provide determinations based on the following:

May require a new FHC case be opened, if the state determines FHC is applicable.
Employees recovering from pregnancy disability may continue a pregnancy disability claim requiring the on-going approval of entitlements under the pregnancy case.
Employees may transition to bonding instead of continuing care under FHC.

Managing In-Flight Cases

Cases Spanning January 1, 2026

For leaves that began before but continue after January 1, 2026:

Manual Action Required:

Review all active Colorado pregnancy/maternity, bonding, and adoption cases
Identify cases where child is/was in NICU on or after January 1, 2026
Add both NICU policies, if applicable with start date of January 1, 2026 or later
Adjust standard FAMLI policies to deny coverage during NICU period

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Best Practice: Proactively communicate with employees about their additional entitlement. Many may not be aware of the new benefit.

Manual Action Required: If an existing family health condition case involves NICU care, advise the employee to open a separate bonding or adoption case to access NICU benefits as of 1/1.

Tracking Required: Create a list of all potentially eligible in-flight cases before January 1, 2026 to ensure none are missed.

Need Help?

For questions about policy configuration or case management, contact your AbsenceSoft support team or consult the Legislative Guidance for compliance details.