Under the Microscope: Dispelling Myths About the Colorado CARE Act and Micro-Businesses

By Mark Fukae Director of Advocacy | Professionals Who Care

Dispelling Myths About the Colorado CARE Act and Micro Businesses

Welcome back to "Under the Microscope," where we take a closer look at the development of policies aimed at creating a more inclusive workplace for caregivers. As we continue the vital work of advocating for the Colorado Caregiver Accommodation and Rights Expansion (CARE) Act, we engage with many stakeholders – fellow non-profits, dedicated allies, business groups, and concerned citizens. This feedback is invaluable, helping us refine our approach and address potential impacts.

One concern that has surfaced during these discussions, particularly from some well-meaning allies and non-profits, revolves around the potential burden the Colorado CARE Act might place on small businesses, specifically micro-businesses. It's a valid concern, as micro-businesses are undeniably the backbone of our economy. However, it's crucial to clarify the scope of the current proposal and explain why this particular concern, while understandable, is not applicable to the Colorado CARE Act as currently drafted.

Understanding the Colorado CARE Act's Scope

Our proposal for the Colorado CARE Act is designed with fiscal responsibility and a phased implementation clearly in mind. We recognize that businesses of different sizes have different capacities and resources. Therefore, the Colorado CARE Act, in its current form, applies only to "covered entities," which are defined as employers with fifteen or more employees.

This means that businesses with 14 or fewer employees – the category typically referred to as micro-businesses – are not subject to the mandates of this legislation. The initial focus is intentionally placed on larger employers to establish the framework for caregiver accommodations where the capacity for implementation is generally greater.

The Mighty Micro-Business: A Look at the Numbers

It's important to understand why the impact on micro-businesses is a natural concern in any legislative discussion about business. Micro-businesses, generally defined as businesses with 1 to 9 employees (and often including the self-employed), represent a significant portion of the economic landscape in both the U.S. and Colorado.

Looking at national data, businesses with fewer than 10 employees constitute a vast majority of all U.S. firms. As of recent data, there are over 12 million businesses with 1-4 employees and nearly 2 million with 5-9 employees in the U.S., totaling over 14 million micro-businesses. These firms are not just numerous; they are vital contributors to job creation, innovation, and local economies. They employ millions of Americans and are particularly prevalent in sectors like retail, services, and construction.

In Colorado, the picture is similar. According to data published in the Colorado Small Business Economic Profile by the U.S. Small Business Administration’s Office of Advocacy, small businesses are a cornerstone of our state. These figures, derived from sources like the U.S. Census Bureau’s Statistics of U.S. Businesses, show that small businesses represent about 99.5% of all Colorado businesses and account for roughly 47.6% of its employment. While precise breakdowns for the "1-9 employee" micro-business category vary, these overall numbers highlight the immense scale and importance of smaller employers in Colorado's economy. They are integral to the character and economic vitality of communities across the state, from our bustling urban centers to our rural towns, fostering local wealth circulation and providing unique goods and services.

Why Exclusion (For Now) Was Intentional

Given their importance, why exclude micro-businesses from the initial phase of the Colorado CARE Act? The decision was a deliberate one, aimed at ensuring the successful and sustainable implementation of this groundbreaking legislation.

• Phased Approach: By starting with larger employers (15+ employees), we can build the necessary infrastructure within the Colorado Civil Rights Division (CCRD) and other state agencies, develop clear guidance and training materials, and assess the initial impact before potentially considering expansion to smaller businesses in the future.

• Minimizing Undue Burden: While we firmly believe that supporting caregivers is ultimately good for businesses of all sizes, we also acknowledge that implementing new accommodation processes requires resources. Excluding micro-businesses initially helps alleviate concerns about disproportionate impact on entities with limited HR support or administrative capacity.

• Focused Implementation: This approach allows for a more focused and effective rollout, ensuring that the core protections for caregivers are established and understood within a significant portion of the workforce without immediately overwhelming the smallest businesses.

It's important to note that while micro-businesses are not covered by the mandates of this specific bill, we remain committed to supporting caregivers employed by businesses of all sizes. Future phases, or separate support programs, could address the needs of those working in smaller settings, perhaps through incentives or tailored resources, building upon the foundation established by the Colorado CARE Act.

Join the Movement - Your Voice Matters!

This blog 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