Caring for Change: A Thoughtful Approach to Small Business: Why the Colorado CARE Act is Not an Undue Burden

By Mark Fukae

A Series by Professionals Who Care

That's why the Colorado CARE (Caregiver Accommodation & Rights Expansion) Act was deliberately designed with these realities in mind, ensuring it is not an undue burden, but rather a carefully phased and supported approach.

By Mark Fukae, Director of Advocacy for Professionals Who Care

In the first two parts of our "Caring for Change" series, we explored the fundamentals of advocacy and lobbying, and then delved into why framing caregiving as an economic imperative is crucial for shifting the societal narrative. We established that policy change is essential to move beyond the "silent crisis" and create truly inclusive workplaces, aligning with Professionals Who Care's vision for every professional who is also a caregiver. As we work to pass legislation like the Colorado CARE Act, however, we must also engage directly with the concerns of every stakeholder, especially the backbone of our economy: Colorado's small businesses.

Small businesses are vital to our state's vibrancy and employ a significant portion of our workforce. Owners and managers of small businesses often wear many hats, operating with leaner teams and fewer dedicated resources than large corporations. Understandably, any new regulation can raise concerns about complexity, cost, and potential disruption. Professionals Who Care is dedicated to reducing marginalization, and that includes ensuring solutions are equitable for businesses of all sizes.

I've heard these concerns directly in my conversations as a citizen lobbyist, particularly from legislators mindful of the impact on small businesses. That's why the Colorado CARE (Caregiver Accommodation & Rights Expansion) Act was deliberately designed with these realities in mind, ensuring it is not an undue burden, but rather a carefully phased and supported approach that aligns with creating an inclusive workplace that is "good for business, and good for us all."

Here's how the proposed Colorado CARE Act specifically addresses the concerns of small businesses and supports our shared goals:

1. Phased-In Implementation Reflects Business Size: We recognize that change takes time and resources, which is especially true for small businesses. The CARE Act doesn't apply to all businesses at once. Instead, it rolls out gradually based on employee count, giving smaller covered businesses the most time to prepare. Businesses with 15-49 employees (the smallest covered tier) are the last group required to comply with the core protections (Section 24-15-113(1)(e)). This provides a longer runway for adaptation and aligns with a practical approach to widespread change.

2. Mindful Threshold for Coverage: The bill is designed to be mindful of very small operations and micro-businesses. It applies only to employers with fifteen or more employees (Section 24-15-101(2)). This means the state's smallest businesses, those with fewer than 15 employees, are not subject to the accommodation requirements.

3. Graduated Funding is Fairer: The program is designed to be self-sustaining through a dedicated Family Caregiver Support Fund, preventing reliance on the state's general budget and addressing concerns about fiscal responsibility. This fund is primarily financed by modest annual surcharges on business licenses, but this fee is tiered based on company size. The smallest covered businesses (15-49 employees) pay the lowest annual fee (Section 24-15-108(2)(a)(i)). This structure ensures that the financial contribution to the program is proportional to the size of the business.

4. The Undue Hardship Protection Remains Vital: Crucially, the bill retains the principle of "undue hardship." Employers, including small businesses, are not required to provide an accommodation if it would pose significant difficulty or expense. The legal definition of undue hardship explicitly takes into account the size and financial resources of the business (Section 24-15-101(8), Section 24-15-103(1), referencing the factors in CADA 24-34-402(1)(a)(II)). This ensures that the requirements are flexible and realistic for smaller operations.

5. Flexible Interactive Process for Small Teams: The bill includes a provision providing slightly more time for covered entities with fewer than 50 employees to initiate the required "interactive process" (the good-faith dialogue between employer and employee to identify feasible accommodations). This recognizes that smaller teams may have less dedicated HR staff and need a little extra flexibility (Section 24-15-103(3)(a)).

6. Dedicated Small Business Support Program: A core component of the CARE Act is the creation of a specific program within the Department of Labor and Employment funded by the Family Caregiver Support Fund to assist businesses with 15-50 employees. This program is designed to provide direct, practical help, including HR consultations, policy templates, peer networks, and even grants (up to $5,000) for necessary workspace modifications or technology (Section 24-15-115). This is proactive support to help small businesses comply successfully.

7. Business Incentives Apply to All: All covered employers, including small businesses, are eligible for state tax credits for implementing qualifying accommodation programs that go above and beyond basic requirements (Section 24-15-104(3)(a)). Early adopters receive a higher credit, and small business applicants are prioritized if credit requests exceed available funding (Section 24-15-104(3)(b)(iii)). This incentivizes proactive caregiver-friendly policies, which aligns with our vision of increasing allyship in the workplace.

8. Focus on Retention & Productivity Benefits: While acknowledging initial adjustment, the bill highlights the economic analysis showing that supporting working caregivers leads to reduced turnover and increased productivity (Section 24-15-104(1)). For a small business, where every team member is critical, losing a single trained employee due to a lack of flexibility can be far more disruptive and costly (often ranging from 50% to 200%+ of their salary to replace) than for a large company. Retaining valuable employees by offering feasible accommodations is a direct benefit and aligns with building a stable team.

Beyond the CARE Act: Leveraging Existing Colorado Supports

It's also important for small businesses to know that the Colorado CARE Act would fit within an existing ecosystem of support they and their employees can already access:

• Colorado FAMLI (Family and Medical Leave Insurance): While FAMLI provides paid leave rather than ongoing accommodation, it's a crucial support. When an employee needs extended time off for caregiving, FAMLI benefits can help replace a portion of their wages, potentially easing the financial burden on the employee and providing a clear process for managing the leave period for the business.

• Colorado Small Business Development Centers (SBDCs): These centers offer invaluable, often no-cost, consulting, training, and resources on various business topics, including HR practices and compliance. They are a ready resource for small businesses navigating employee relations and potential new policies.

• Existing Caregiver Support Programs: Colorado has programs like the Respite Care Program (C.R.S. 26-11-207) that provide temporary relief services to caregivers. While separate from workplace accommodation, awareness and utilization of these programs can sometimes alleviate care demands that might otherwise impact work schedules. The CARE Act encourages integration with these existing supports (Section 24-15-109).

The Colorado CARE Act is not designed to place an insurmountable burden on small businesses. It is a carefully considered legislative proposal aimed at creating necessary clarity, providing support, and recognizing the valuable role of working caregivers in a way that is phased, fiscally responsible, and ultimately benefits employers by helping them retain talent and boost productivity. It aligns with our mission to build an inclusive workplace that recognizes the strengths and realities of all employees, including those juggling caregiving responsibilities.

If you are a small business owner or representative, I encourage you to look closely at the details of the CARE Act and see it not as a mandate to fear, but as a framework for building a more resilient, loyal, and productive team. Let's talk about how this legislation can support your employees and ultimately benefit your business.

Join the Movement - Your Voice Matters!

This post outlines our thoughtful approach to ensuring the CARE Act supports, rather than burdens, small businesses.

Join us at Professionals Who Care. Follow our page and engage with our content. Your support is crucial for our advocacy efforts. Please also sign my petition on Change.org at the link here: Empower Working Caregivers: Enact Federal & Colorado CARE Act to Amend ADA & CADA to show your support for legislative change. Finally, please share this article widely with your network, especially within the small business community.

Kindly,

Mark Fukae

Director of Advocacy | Professionals Who Care