FirstSB074_S_SA.001 RegularNOT SessionAMENDED Seventy-fifthSENATE GeneralCOMMITTEE AssemblyOF STATEREFERENCE OFREPORT COLORADO_______________________________ INTRODUCEDFebruary LLS11, NO.2025 Chair of Committee Date Committee on State, Veterans, & Military Affairs After consideration on the merits, the Committee recommends the following:

25-0691.01SB25-074 Reneebe Leonepostponed x2695indefinitely. SENATE BILL 25-074 SENATE SPONSORSHIP Bright, HOUSE SPONSORSHIP Barron, Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT C ONCERNING CREATING AN EXEMPTION TO THE EMPLOYMENT PROTECTION REQUIREMENTS UNDER THE "PAID FAMILY AND M EDICAL LEAVE INSURANCE ACT" FOR AN EMPLOYER THAT HAS A WORKFORCE CONSISTING OF A MAJORITY OF HIGHLY SPECIALIZED EMPLOYEES .

Bill** Summary*** (Note:** *** **

This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill 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, 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.

Section1ofthebillcreatesanexemptionfromtheserequirements 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 familyand medical leave insurance (division) in the departmentoflaborandemploymentbeforetheemployercanqualifyfor 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 employerhasaworkforceof 51%ormorehighlyspecialized 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:

SECTION 1.

In Colorado Revised Statutes, 8-13.3-509, amend (8);

and add (9) as follows:

8-13.3-509.

Leave and employment protection - exceptions - definition.

(8) This section does not apply to:

(a) An employee of a local government that has elected coverage pursuant to section 8-13.3-514;R (b) (I) ON AND AFTER JUNE 1, 2026, AN EMPLOYEE WHO WORKS FOR AN EMPLOYER THAT HAS A WORKFORCE COMPRISED OF FIFTY ONE PERCENT OR MORE HIGHLY SPECIALIZED EMPLOYEES .

(II) P URSUANT TO A STANDARDIZED APPLICATION PROCESS ADOPTEDBYTHEDIVISIONINACCORDANCEWITHSECTION 8-13.3-516(8), AN EMPLOYER THAT HAS A WORKFORCE COMPRISED OF FIFTY ONE -2- SB25-074 PERCENT ORMORE HIGHLYSPECIALIZEDEMPLOYEES MUST APPLYTOAND GET APPROVAL FROM THE DIVISION TO QUALIFY FOR THE HIGHLY SPECIALIZED EMPLOYEES EXEMPTION SET FORTHIN SUBSECTION(8)(b)(I) OF THIS SECTIO.

AN EMPLOYER THAT THE DIVISION QUALIFIES FOR THE EXEMPTION MUST REAPPLY ANNUALLY TO MAINTAIN THE EXEMPTION .

(9) AS USED IN THIS SECTIO,HIGHLY SPECIALIZED EMPLOYEE " MEANS AN EMPLOYEE WHOSE JOB DESCRIPTION OR DUTIES:

(a) INVOLVE RESPONSIBILITIES THAT ARE NOT EASILY TRANSFERABLE TO OTHER EMPLOYEES WITHOUT SIGNIFICANT TRAINING ;

(b) REQUIRE A SPECIFIC OR UNIQUE ADVANCED DEGREE , CERTIFICATION,ORTECHNICALQUALIFICATIONTHAT LIMITSTHEPOOLOF POTENTIAL REPLACEMENTS FOR THAT JOB ;OR (c) REQUIRE A SKILL SET THAT IS RARE OR IN HIGH DEMA,AS EVIDENCED BY LONG AVERAGE HIRING TIMES FOR SIMILAR JOBS AND REGIONALORINDUSTRY -SPECIFICSHORTAGESOFQUALIFIEDAPPLICANTS .

SECTION 2.

In Colorado Revised Statutes, 8-13.3-516, add (8) as follows:

8-13.3-516.

Family and medical leave insurance program - rules.

(8) (a) T HE DIVISION SHALL ESTABLISH A STANDARDIZED APPLICATIONPROCESSBYWHICHANEMPLOYERMAYAPPLYANNUALLYTO THE DIVISION FOR THE HIGHLY SPECIALIZED EMPLOYEE EXEMPTION SET FORTH IN SECTION8-13.3-509 (8)(b).

(b) THE STANDARDIZED APPLICATION PROCESSMUST REQUIRE AN EMPLOYERAPPLYINGFORTHEHIGHLYSPECIALIZEDEMPLOYEEEXEMPTION TOSUBMITDOCUMENTATIONESTABLISHINGTHATFIFTY ONEPERCENTOR MORE OF THE EMPLOYER 'S EMPLOYEES ARE HIGHLY SPECIALIZED ,AS DEFINED IN SECTION8-13.3-509 (9).

-3- SB25-074 (c) ON OR BEFOREM ARCH 1, 2026THE DIRECTOR SHALL ADOPT NECESSARY RULES TO IMPLEMENT THE STANDARDIZED APPLICATION PROCESS.

SECTION 3.

Act subject to petition - effective date.

This act takes effect at 12:01 a.m.