CO SB074

Creates an exemption from Colorado's Paid Family and Medical Leave Insurance Act job protection requirements for employers whose workforce consists of 51% or more highly specialized employees, effective June 1, 2026

Defines "highly specialized employee" as one whose duties involve non-transferable responsibilities, require unique advanced degrees or certifications that limit the replacement pool, or require rare/high-demand skills evidenced by long hiring times and regional shortages

Requires employers to apply for and receive approval from the Division of Family and Medical Leave Insurance to qualify for the exemption, with annual reapplication required to maintain exempt status

Directs the Division to establish a standardized application process requiring documentation that proves 51% or more of employees meet the highly specialized criteria

Requires the Division director to adopt implementing rules by March 1, 2026