As the year winds down and the holiday season approaches, it is time to review upcoming law changes, revise your handbooks, business practices, and forms for the new year.

Beginning January 1, 2026, Colorado employers should be aware of a few changes that are taking place.

Minimum wage will increase in the State of Colorado, Denver County, Edgewater, Unincorporated Boulder County and the City of Boulder.

*Please contact StaffScapes’ HR Department if you have questions regarding minimum wage, salary threshold, exempt v. non-exempt categories, etc.

Effective June 30, 2026, Employers that use artificial intelligence systems for any employment algorithmic systems must now show transparency (SB24-205).

This law specifically speaks to the potential algorithmic discrimination, causing employers to have to be transparent about their usage of these systems, implement risk management and oversight. Overall, employers must use reasonable care to prevent foreseeable risks of this discrimination. Employers must use a disclosing statement outlining the foreseeable ruses, known risks, limitations, and how the system is intended to be used.   

Effective January 1, 2026, the definition of “small employer” for health insurance coverage (SB24-073).

This law changes the definition of small employer from 1 to 100 employees to 1 to 50 employees. Employers that currently qualify under the larger threshold but would no longer qualify may elect to remain under a small-group health plan for 5 years and can switch plans during that time but only to adjacent metal levels. If you currently have 51-100 employees, please reach out to StaffScapes to better understand how this change will impact your options, pricing, and compliance obligations.

Effective January 1, 2026, FAMLI premium rates are decreasing from 0.9% to 0.88%. Additionally, FAMLI will begin to offer an additional 12 weeks of paid leave for “neonatal care leave” while an infant is receiving inpatient neonatal care. (SB25-144)

With these FAMLI changes, the FAMLI Division has also released an update regarding changes in tax responsibilities. Starting in 2026, employers with 10 or more employees will be responsible for paying a share of Social Security and Medicare taxes (FICA) and federal unemployment taxes (FUTA) on certain FAMLI benefits. FAMLI has committed to sending semi-weekly notices regarding the portions that they are withholding from the employee’s side to help aid in accountant needs when an employee is on active leave.

Since StaffScapes submit wages and will be responsible for submitting these new tax changes, it is necessary for clients to send us the semi-weekly FAMLI notices that they receive. This is imperative so that we can correctly administer these amounts and so clients can avoid penalties. StaffScapes will continue to provide updates on these changes and we welcome everyone to register for the FAMLI employer newsletter on their website, too.     

Recap of legal changes effective in 2025:

• Effective July 1, 2025, Employers must now produce a written policy that complies with the Privacy of Biometric Identifiers & Data (HB24-1130).
• Enforcement Wage Hour Laws which changed the definition of “employer.” (HB25-1001)
• Colorado Anti-Discrimination Act extends the deadline to file complaints to one year, caps the noneconomic damages, and makes changes for small businesses with fewer than 10 employees. (HB25-1239)
• Limiatations on restrictive employment agreements for healthcare workers (SB25-083)
• Kelly Loving Act, promoting legal protections for transgender individuals including prohibitions against using a former name and/or incorrect pronouns (HB25-1312)

Please contact the StaffScapes Payroll Department with any questions regarding any of the above legal changes or other HR and employment topics.