Caring for Change Series: Why Now? The Transformative Power of the CARE Act Proposals

Caring for Change: Why Now? The Transformative Power of the CARE Act Proposals

By Mark Fukae, Director of Advocacy for Professionals Who Care

A Series by Professionals Who Care: Caring for Change

From Burden to Breakthrough: The Urgent Need for CARE

Every day, I experience the raw reality of caregiving for my 93-year-old mother, whose end-stage dementia means her memory is rapidly regressing to only seconds in time. This deeply personal journey, often compounded by the demands of my professional life, makes the "Hidden Truths" we've explored – the immense and often invisible burdens on time, finances, relationships, identity, and overall well-being for caregivers juggling employment – acutely real. But acknowledging the problem is only the first step.

The critical question now is: Why are the Federal and Colorado CARE Act proposals not just timely, but essential? And why are they designed to be truly transformative, not just reactive? 

The answer lies in a confluence of factors – demographic shifts, economic realities, and a growing understanding of caregiving's vital role in our society. The time for comprehensive, systemic support for family caregivers is not just coming; it's here.

Why Now? The Imperative for Change

The urgency for legislation like the Federal and Colorado CARE Acts stems from several undeniable realities:

• Economic Opportunity & Unpaid Contributions: Family caregivers represent approximately 53.4 million Americans, providing an estimated $470 billion in unpaid care annually. Out of these 53.4 million, a staggering 32 million are employed caregivers – individuals directly impacted by workplace policies and whose continued employment is crucial for both their families and the economy. This represents massive untapped human capital and economic potential when properly supported in the workplace. For Colorado alone, the state's economy loses an estimated $3.5 billion annually due to caregiver absenteeism, turnover, and reduced productivity.

• A Clear Business Case: Companies that implement caregiver accommodations report average returns of $3.00 for every $1.00 invested, with 85 percent of employers reporting improved employee loyalty and 73 percent reporting enhanced productivity. Supporting caregivers costs employers significantly less than the expenses associated with recruitment and training due to turnover.

• Demographic Imperative: America's population is aging, leading to a growing economic sector and increased caregiver demands. Colorado specifically anticipates a 30% increase in caregiver demands over the next decade, necessitating proactive workforce solutions.

• Lessons from Successful State Models: States like New York, Washington, California, Maine, and Illinois have already demonstrated the measurable benefits of caregiver protection laws for both employers and employees. These state models provide valuable insights into effective accommodation frameworks.

A "Closed-Loop" System: Designed for Success, Not Burden

A unique and crucial aspect of both the Federal and Colorado CARE Act proposals is their "closed-loop" design, ensuring they are sustainable, effective, and revenue-neutral without burdening taxpayers.

For the Federal CARE Act: The Act proposes a Caregiver Accommodation and Support Trust Fund. This fund is designed to be self-sustaining through modest payroll contributions: 0.25 percent paid by the employer and 0.25 percent by the employee, applied to wages up to the Social Security contribution base. This structure ensures funding sustainability, drawing on successful state paid leave programs.

Funds from this Trust Fund are allocated for:

• Technical assistance and resource development.

• Small business grants and incentives.

• Accommodation innovation funding.

• State partnership enhancement grants.

• Administrative costs, capped at 5 percent of annual revenues.

For the Colorado CARE Act: Colorado’s proposal establishes a Colorado Caregiver Support Fund. This fund would consist of moneys appropriated by the General Assembly, federal grants, private donations, civil penalty collections, and other available funds. A key goal is budget neutrality, with the Commission required to report annually on program costs and any measurable savings to state programs, including reduced unemployment insurance claims, decreased Medicaid utilization, and improved state employee productivity. This proactive approach ensures the program is financially responsible and sustainable.

Unique Features: Incentivizing, Protecting, and Supporting

These acts are not punitive; instead, they are designed to incentivize positive change and protect the rights of caregivers through unique features:

• Workplace Accommodations & Rights Protection: Both acts aim to amend existing civil rights legislation (ADA for Federal, CADA for Colorado) to establish family caregivers as a protected class. This means it would be unlawful to discriminate against an individual based on their status as a family caregiver regarding hiring, advancement, compensation, or other terms of employment. Employers would be obligated to provide reasonable accommodations for caregiving responsibilities unless it imposes an "undue hardship".

  • Federal Definition: "Reasonable accommodation for caregiving" includes modifications to work schedules, job duties, workplace policies, or environment to enable a caregiver to perform essential job functions while maintaining business productivity.

  • Colorado Examples: This can include flexible work schedules, remote/hybrid work, temporary job restructuring, extended unpaid leave, job-sharing, and adjusted break schedules.

• Collaborative Accommodation Process: Both proposals mandate a "collaborative accommodation process". This is a solution-focused dialogue between employers and employees to identify mutually beneficial caregiving support arrangements. It includes a right to request accommodations, timely responses, and good faith engagement from both parties.

• Incentives for Employers:

  • Federal: Includes small business provisions like a microbusiness exemption from the employer payroll tax for the first 3 years, a phase-in for small employers, tax credits for qualified accommodation expenses (up to $10,000), direct grants, and access to shared services.

  • Colorado: Offers a Caregiver-Friendly Employer Certification program with Bronze, Silver, and Gold levels, providing public recognition, marketing benefits, and preference in state contracting processes. It also includes implementation grants for Tier Two (15-49 employees) employers and comprehensive technical assistance programs for smaller businesses. There are even "safe harbor" provisions for Tier Two employers demonstrating good faith compliance efforts.

• Data-Driven Policy & Continuous Improvement: Both acts emphasize robust data collection and economic impact assessments. The Colorado CARE Act requires an independent economic impact assessment to project costs and benefits, analyze similar laws, and provide recommendations. This commitment to evidence-based policy ensures that the laws can be adapted and refined for maximum effectiveness.

• No Punishment, But Accountability: The focus is on encouraging compliance through support and incentives. However, both acts also establish enforcement mechanisms when good faith efforts fail. The Federal Act outlines civil penalties for process violations, unlawful denials, and retaliation, with reduced penalties for smaller employers. The Colorado Act includes a graduated penalty structure, starting with warnings and corrective action plans for first violations, and increasing civil penalties for subsequent or willful violations. Both also feature mediation programs to resolve disputes.

• Protecting Unpaid Caregivers: At their core, these proposals acknowledge and seek to support the crucial contributions of family caregivers, who provide billions in unpaid care annually. By protecting their employment, these acts ensure stability for families and prevent caregivers from falling into poverty due to their responsibilities.

Colorado as a National Model

What we can pass in Colorado with the Colorado CARE Act can translate nationally by taking the best elements from existing state laws and demonstrating a robust, data-driven, and revenue-neutral model. By showing that comprehensive caregiver accommodations lead to improved employee loyalty, increased productivity, and economic benefits, Colorado can provide a powerful blueprint for federal legislation. This proactive approach ensures clarity and consistency for employers and employees throughout the state, while serving as a beacon for nationwide change.

Your Voice is Needed

The time for action is now. These proposals are not just about helping individuals; they are about strengthening our workforce, boosting our economy, and building a more compassionate society.

• Support the Colorado CARE Act: [Empower Working Caregivers: Enact Federal & Colorado CARE Act to Amend ADA & CADA]

• Engage with Professionals Who Care: [Professionals Who Care website]

• Advocate for the Federal CARE Act: [Empower Working Caregivers: Enact Federal & Colorado CARE Act to Amend ADA & CADA]

• Spread Awareness: Share this post and our "Caring for Change" campaign with your network.

Resources for Why Now? The Transformative Power of the CARE Act Proposals

1. H.R. 119th CONGRESS, 1st Session, A BILL to enhance workplace accommodations for family caregivers (Federal CARE Act Draft, June 11, 2025).

2. Colorado Senate Bill 25-001, "Colorado Caregiver Accommodations & Rights Expansion Act" (Colorado CARE Act Draft, June 11, 2025).