1 | 1 | | First Regular Session |
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2 | 2 | | Seventy-fifth General Assembly |
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3 | 3 | | STATE OF COLORADO |
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4 | 4 | | INTRODUCED |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | LLS NO. 25-0691.01 Renee Leone x2695 |
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8 | 8 | | SENATE BILL 25-074 |
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9 | 9 | | Senate Committees House Committees |
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10 | 10 | | State, Veterans, & Military Affairs |
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11 | 11 | | A BILL FOR AN ACT |
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12 | 12 | | C |
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13 | 13 | | ONCERNING CREATING AN EXEMPTION TO THE EMPLOYMENT101 |
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14 | 14 | | PROTECTION REQUIREMENTS UNDER THE "PAID FAMILY AND102 |
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15 | 15 | | M |
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16 | 16 | | EDICAL LEAVE INSURANCE ACT" FOR AN EMPLOYER THAT103 |
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17 | 17 | | HAS A WORKFORCE CONSISTING OF A MAJORITY OF HIGHLY104 |
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18 | 18 | | SPECIALIZED EMPLOYEES .105 |
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19 | 19 | | Bill Summary |
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20 | 20 | | (Note: This summary applies to this bill as introduced and does |
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21 | 21 | | not reflect any amendments that may be subsequently adopted. If this bill |
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22 | 22 | | passes third reading in the house of introduction, a bill summary that |
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23 | 23 | | applies to the reengrossed version of this bill will be available at |
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24 | 24 | | http://leg.colorado.gov |
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25 | 25 | | .) |
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26 | 26 | | Under current law, when an employee takes leave from a job |
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27 | 27 | | pursuant to the state's paid family and medical leave insurance program, |
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28 | 28 | | SENATE SPONSORSHIP |
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29 | 29 | | Bright, |
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30 | 30 | | HOUSE SPONSORSHIP |
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31 | 31 | | Barron, |
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32 | 32 | | Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. |
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33 | 33 | | Capital letters or bold & italic numbers indicate new material to be added to existing law. |
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34 | 34 | | Dashes through the words or numbers indicate deletions from existing law. the employer is required to hold the employee's job until the employee |
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35 | 35 | | returns and maintain the employee's health-care benefits during the |
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36 | 36 | | duration of their leave. |
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37 | 37 | | Section 1 of the bill creates an exemption from these requirements |
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38 | 38 | | for an employer that has a workforce of 51% or more highly specialized |
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39 | 39 | | employees. The bill requires an employer to apply to and get approval |
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40 | 40 | | from the division of family and medical leave insurance (division) in the |
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41 | 41 | | department of labor and employment before the employer can qualify for |
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42 | 42 | | the exemption. An employer that qualifies must reapply annually to |
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43 | 43 | | maintain the exemption. Lastly, section 1 defines a highly specialized |
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44 | 44 | | employee as an employee whose job description or duties: |
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45 | 45 | | ! Involve responsibilities that are not easily transferrable; |
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46 | 46 | | ! Require a specific or unique advanced degree that limits |
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47 | 47 | | the pool of replacements; or |
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48 | 48 | | ! Require a rare or in-high-demand skill set. |
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49 | 49 | | Section 2 requires the division to establish a standardized |
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50 | 50 | | application process for employers to apply for the highly specialized |
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51 | 51 | | employees exemption by submitting documentation that proves that the |
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52 | 52 | | employer has a workforce of 51% or more highly specialized employees. |
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53 | 53 | | On or before March 1, 2026, the director of the division is required to |
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54 | 54 | | adopt necessary rules to implement the application process. |
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55 | 55 | | Be it enacted by the General Assembly of the State of Colorado:1 |
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56 | 56 | | SECTION 1. In Colorado Revised Statutes, 8-13.3-509, amend2 |
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57 | 57 | | (8); and add (9) as follows:3 |
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58 | 58 | | 8-13.3-509. Leave and employment protection - exceptions -4 |
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59 | 59 | | definition. (8) This section does not apply to:5 |
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60 | 60 | | (a) An employee of a local government that has elected coverage6 |
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61 | 61 | | pursuant to section 8-13.3-514; |
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62 | 62 | | OR7 |
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63 | 63 | | (b) (I) O |
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64 | 64 | | N AND AFTER JUNE 1, 2026, AN EMPLOYEE WHO WORKS8 |
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65 | 65 | | FOR AN EMPLOYER THAT HAS A WORKFORCE COMPRISED OF FIFTY -ONE9 |
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66 | 66 | | PERCENT OR MORE HIGHLY SPECIALIZED EMPLOYEES .10 |
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67 | 67 | | (II) P |
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68 | 68 | | URSUANT TO A STANDARDIZED APPLICATION PROCESS11 |
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69 | 69 | | ADOPTED BY THE DIVISION IN ACCORDANCE WITH SECTION 8-13.3-516 (8),12 |
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70 | 70 | | AN EMPLOYER THAT HAS A WORKFORCE COMPRISED OF FIFTY -ONE13 |
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71 | 71 | | SB25-074-2- PERCENT OR MORE HIGHLY SPECIALIZED EMPLOYEES MUST APPLY TO AND1 |
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72 | 72 | | GET APPROVAL FROM THE DIVISION TO QUALIFY FOR THE HIGHLY2 |
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73 | 73 | | SPECIALIZED EMPLOYEES EXEMPTION SET FORTH IN SUBSECTION (8)(b)(I)3 |
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74 | 74 | | OF THIS SECTION. AN EMPLOYER THAT THE DIVISION QUALIFIES FOR THE4 |
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75 | 75 | | EXEMPTION MUST REAPPLY ANNUALLY TO MAINTAIN THE EXEMPTION . 5 |
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76 | 76 | | (9) A |
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77 | 77 | | S USED IN THIS SECTION, "HIGHLY SPECIALIZED EMPLOYEE"6 |
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78 | 78 | | MEANS AN EMPLOYEE WHOSE JOB DESCRIPTION OR DUTIES :7 |
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79 | 79 | | (a) I |
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80 | 80 | | NVOLVE RESPONSIBILITIES THAT ARE NOT EASILY8 |
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81 | 81 | | TRANSFERABLE TO OTHER EMPLOYEES WITHOUT SIGNIFICANT TRAINING ;9 |
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82 | 82 | | (b) R |
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83 | 83 | | EQUIRE A SPECIFIC OR UNIQUE ADVANCED DEGREE ,10 |
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84 | 84 | | CERTIFICATION, OR TECHNICAL QUALIFICATION THAT LIMITS THE POOL OF11 |
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85 | 85 | | POTENTIAL REPLACEMENTS FOR THAT JOB ; OR12 |
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86 | 86 | | (c) R |
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87 | 87 | | EQUIRE A SKILL SET THAT IS RARE OR IN HIGH DEMAND , AS13 |
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88 | 88 | | EVIDENCED BY LONG AVERAGE HIRING TIMES FOR SIMILAR JOBS AND14 |
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89 | 89 | | REGIONAL OR INDUSTRY-SPECIFIC SHORTAGES OF QUALIFIED APPLICANTS.15 |
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90 | 90 | | SECTION 2. In Colorado Revised Statutes, 8-13.3-516, add (8)16 |
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91 | 91 | | as follows:17 |
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92 | 92 | | 8-13.3-516. Family and medical leave insurance program -18 |
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93 | 93 | | rules. (8) (a) T |
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94 | 94 | | HE DIVISION SHALL ESTABLISH A STANDARDIZED19 |
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95 | 95 | | APPLICATION PROCESS BY WHICH AN EMPLOYER MAY APPLY ANNUALLY TO20 |
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96 | 96 | | THE DIVISION FOR THE HIGHLY SPECIALIZED EMPLOYEE EXEMPTION SET21 |
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97 | 97 | | FORTH IN SECTION 8-13.3-509 (8)(b).22 |
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98 | 98 | | (b) T |
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99 | 99 | | HE STANDARDIZED APPLICATION PROCESS MUST REQUIRE AN23 |
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100 | 100 | | EMPLOYER APPLYING FOR THE HIGHLY SPECIALIZED EMPLOYEE EXEMPTION24 |
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101 | 101 | | TO SUBMIT DOCUMENTATION ESTABLISHING THAT FIFTY -ONE PERCENT OR25 |
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102 | 102 | | MORE OF THE EMPLOYER 'S EMPLOYEES ARE HIGHLY SPECIALIZED , AS26 |
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103 | 103 | | DEFINED IN SECTION 8-13.3-509 (9).27 |
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104 | 104 | | SB25-074 |
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105 | 105 | | -3- (c) ON OR BEFORE MARCH 1, 2026, THE DIRECTOR SHALL ADOPT1 |
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106 | 106 | | NECESSARY RULES TO IMPLEMENT THE STANDARDIZED APPLICATION2 |
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107 | 107 | | PROCESS. 3 |
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108 | 108 | | SECTION 3. Act subject to petition - effective date. This act4 |
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109 | 109 | | takes effect at 12:01 a.m. on the day following the expiration of the5 |
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110 | 110 | | ninety-day period after final adjournment of the general assembly; except6 |
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111 | 111 | | that, if a referendum petition is filed pursuant to section 1 (3) of article V7 |
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112 | 112 | | of the state constitution against this act or an item, section, or part of this8 |
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113 | 113 | | act within such period, then the act, item, section, or part will not take9 |
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114 | 114 | | effect unless approved by the people at the general election to be held in10 |
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115 | 115 | | November 2026 and, in such case, will take effect on the date of the11 |
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116 | 116 | | official declaration of the vote thereon by the governor.12 |
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117 | 117 | | SB25-074 |
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118 | 118 | | -4- |
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