First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0691.01 Renee Leone x2695
SENATE BILL 25-074
Senate Committees House Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACT
C
ONCERNING CREATING AN EXEMPTION TO THE EMPLOYMENT101
PROTECTION REQUIREMENTS UNDER THE "PAID FAMILY AND102
M
EDICAL LEAVE INSURANCE ACT" FOR AN EMPLOYER THAT103
HAS A WORKFORCE CONSISTING OF A MAJORITY OF HIGHLY104
SPECIALIZED EMPLOYEES .105
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,
SENATE SPONSORSHIP
Bright,
HOUSE SPONSORSHIP
Barron,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. 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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 8-13.3-509, amend2
(8); and add (9) as follows:3
8-13.3-509. Leave and employment protection - exceptions -4
definition. (8) This section does not apply to:5
(a) An employee of a local government that has elected coverage6
pursuant to section 8-13.3-514;
OR7
(b) (I) O
N AND AFTER JUNE 1, 2026, AN EMPLOYEE WHO WORKS8
FOR AN EMPLOYER THAT HAS A WORKFORCE COMPRISED OF FIFTY -ONE9
PERCENT OR MORE HIGHLY SPECIALIZED EMPLOYEES .10
(II) P
URSUANT TO A STANDARDIZED APPLICATION PROCESS11
ADOPTED BY THE DIVISION IN ACCORDANCE WITH SECTION 8-13.3-516 (8),12
AN EMPLOYER THAT HAS A WORKFORCE COMPRISED OF FIFTY -ONE13
SB25-074-2- PERCENT OR MORE HIGHLY SPECIALIZED EMPLOYEES MUST APPLY TO AND1
GET APPROVAL FROM THE DIVISION TO QUALIFY FOR THE HIGHLY2
SPECIALIZED EMPLOYEES EXEMPTION SET FORTH IN SUBSECTION (8)(b)(I)3
OF THIS SECTION. AN EMPLOYER THAT THE DIVISION QUALIFIES FOR THE4
EXEMPTION MUST REAPPLY ANNUALLY TO MAINTAIN THE EXEMPTION . 5
(9) A
S USED IN THIS SECTION, "HIGHLY SPECIALIZED EMPLOYEE"6
MEANS AN EMPLOYEE WHOSE JOB DESCRIPTION OR DUTIES :7
(a) I
NVOLVE RESPONSIBILITIES THAT ARE NOT EASILY8
TRANSFERABLE TO OTHER EMPLOYEES WITHOUT SIGNIFICANT TRAINING ;9
(b) R
EQUIRE A SPECIFIC OR UNIQUE ADVANCED DEGREE ,10
CERTIFICATION, OR TECHNICAL QUALIFICATION THAT LIMITS THE POOL OF11
POTENTIAL REPLACEMENTS FOR THAT JOB ; OR12
(c) R
EQUIRE A SKILL SET THAT IS RARE OR IN HIGH DEMAND , AS13
EVIDENCED BY LONG AVERAGE HIRING TIMES FOR SIMILAR JOBS AND14
REGIONAL OR INDUSTRY-SPECIFIC SHORTAGES OF QUALIFIED APPLICANTS.15
SECTION 2. In Colorado Revised Statutes, 8-13.3-516, add (8)16
as follows:17
8-13.3-516. Family and medical leave insurance program -18
rules. (8) (a) T
HE DIVISION SHALL ESTABLISH A STANDARDIZED19
APPLICATION PROCESS BY WHICH AN EMPLOYER MAY APPLY ANNUALLY TO20
THE DIVISION FOR THE HIGHLY SPECIALIZED EMPLOYEE EXEMPTION SET21
FORTH IN SECTION 8-13.3-509 (8)(b).22
(b) T
HE STANDARDIZED APPLICATION PROCESS MUST REQUIRE AN23
EMPLOYER APPLYING FOR THE HIGHLY SPECIALIZED EMPLOYEE EXEMPTION24
TO SUBMIT DOCUMENTATION ESTABLISHING THAT FIFTY -ONE PERCENT OR25
MORE OF THE EMPLOYER 'S EMPLOYEES ARE HIGHLY SPECIALIZED , AS26
DEFINED IN SECTION 8-13.3-509 (9).27
SB25-074
-3- (c) ON OR BEFORE MARCH 1, 2026, THE DIRECTOR SHALL ADOPT1
NECESSARY RULES TO IMPLEMENT THE STANDARDIZED APPLICATION2
PROCESS. 3
SECTION 3. Act subject to petition - effective date. This act4
takes effect at 12:01 a.m. on the day following the expiration of the5
ninety-day period after final adjournment of the general assembly; except6
that, if a referendum petition is filed pursuant to section 1 (3) of article V7
of the state constitution against this act or an item, section, or part of this8
act within such period, then the act, item, section, or part will not take9
effect unless approved by the people at the general election to be held in10
November 2026 and, in such case, will take effect on the date of the11
official declaration of the vote thereon by the governor.12
SB25-074
-4-