Business groups opposed to paid family leave bill in Colorado

A bill to create a state-run, employee-funded insurance program to provide paid medical and family leave ran into strong business opposition in the Senate State Affairs Committee on Monday.

“We are worried about the administrative burden on small business owners. We are leery of one-size-fits-all state mandates. We are worried about the growth in state government,” South Metro Chamber of Commerce policy director Patrick Pratt said.

Senate Bill 196, the Family and Medical Leave Insurance (FAMLI) Act, would create a fund to cover a portion of a participating worker’s wages if he or she takes time off for a personal or family medical situation.

“Life happens. We often don’t plan for some of these things. We don’t plan to get cancer. We don’t plan to have a sick adult or kid in our life,” said the bill’s sponsor, Sen. Jessie Ulibarri, D-Commerce City.

Only 12 percent of workers have paid family leave, leaving many to choose between looking after loved ones or staying on the job so they can meet basic living expenses, supporters argue.

“I’m more than willing to pay $3 per week into a family-leave insurance plan to know I won’t face eviction or destitution if I have to take off work to help my father again,” said Shelby Ramirez, a security officer and member of 9to5, an advocacy group for working women.

Until the insurance fund is built up, however, the state would have to cover the costs for a program that will employ 238 people, an expense that opponents targeted.

“I don’t think we can underestimate how big a program this creates for our state,” said Loren Furman, senior vice president for state and federal relations with the Colorado Association of Commerce and Industry.

Another concern is that small businesses now exempt under federal law from holding a job open for a worker on a qualified leave would be required to hold a position open for three months, said National Federation of Independent Business state director Tony Gagliardi said.

“What happens when the employee returns to work?” he asked. “You will be forced to replace that person.”

Some business owners, however, testified to the value of creating a more formal employee-funded program to cover a cost they now cover on an ad hoc basis.

“A lot of small businesses have informal leave programs. That’s because we view our employees as family,” said Lisa Goodbee, president of Goodbee & Associates, a technical consulting firm in Centennial.

Paid family leave programs lower worker turnover, reduce dependence on public assistance and make it easier for women to participate in the labor force, Colorado Fiscal Institute economist Chris Stiffler said.

Ulibarri acknowledged such a complex program isn’t likely to pass on the first try. Furman also said there would be value in including more input from businesses in the future, which she said was lacking on the initial attempt.

Ulibarri asked that the bill be laid over until Wednesday, so committee vice chairman Matt Jones, D-Louisville, could be present. Jones was out taking care of his ill mother.

Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or twitter.com/aldosvaldi