CRBC opposes Denver’s Initiated Ordinance 300 (“Initiative 300”, “Ordinance”) which would significantly increase the cost of doing business for Denver employers. Not only would it require all employers to provide a minimum amount of “paid sick and safe time” leave (up to 40 or 72 hours annually) to all employees (full-time, part-time and temporary) employed within the geographic boundaries of Denver for at least 40 hours a year, but it would mandate several new administrative and regulatory burdens which will require modifications to the employers’ policies and practices. The net result of these changes will be that Denver employers will find it more difficult to compete successfully. For many employers who are struggling to survive in these difficult economic times (Denver’s unemployment rate is currently 8.5%),they may have to eliminate some jobs, or increase their prices or move out of Denver to more business friendly neighboring communities.
Some of the proposed requirements include: imposing the same burdens on all employers including very small businesses (1 to 9 employees); giving paid leave not only to full-time workers but also to part-time and temporary workers; retaining records documenting hours worked and paid sick and safe time taken by employees, for a period of five years, and allowing the Agency for Human Rights and Community Relations access to such records; preventing employers from requiring disclosure of information relating to domestic abuse, sexual assault or stalking or the details of an employee’s medical condition as a condition to provide paid sick and safe time leave; etc.
Please note that the definition of “Employer” per this proposed Ordinance includes any Colorado employer, thus for example a Broomfield business that has employees making regular deliveries to Denver locations would be subject to this Ordinance. Think about that.
Furthermore the Denver City Attorney’s analysis includes an estimate that Denver would incur an additional annual expense of $690,500 to administer this new Ordinance, which does not include the yet to be determined additional cost to enforce it.
Imposing additional expensive burdens on Denver employers will lead to less sales and tax revenue and fewer jobs, because some Denver businesses will leave, there will be fewer new start-up businesses and fewer existing businesses moving into Denver. If this Initiative 300 passes, why would any business owner prefer to operate in Denver rather than Aurora, Lakewood, Westminster, Arvada, Littleton, Longmont, Castle Rock, Louisville, Golden, Evergreen, Broomfield……..?
For more information regarding Initiative 300, please go to www.keepdenvercompetitive.com and also to CRBC’s website www.smallbizgop.com, where you will find a detailed analysis by the law firm of Hogan Lovells US LLP, along with the Denver City Attorney’s analysis.
Additional Reading and Sources:
Hogan Lovells report on Denver Colorado Paid Sick Leave, Initiative 300
City of Denver Colorado Legal Analysis of Paid Sick Leave, Initiative 300
City of Denver Colorado report on the Fiscal Impacts of Paid Sick Leave, Initiative 300
CRBC opposes Proposition 103 (“Proposition”) which proposes to amend the Colorado Revised Statutes by increasing the individual and corporate income tax rate from 4.63% to 5.00% (nearly 8%) and the sales and use tax rate from 2.93% to 3.00% (over 3%), for five years, and would require the additional tax revenue be spent on public education. The estimated amount of additional tax revenue would be $2.9 billion. The Proposition not only does not specify how the additional tax revenue would be allocated amongst the many preschool through higher education programs, it doesn’t offer a plan as to how the additional expenditures will improve public education.
Raising taxes during these difficult economic times, with Colorado’s unemployment rate at 8.5%, makes no sense. Consumer spending and business investments will drop, thus weakening the economy further, leading to the elimination of 30,500 jobs by 2017 (per a study by Dr. Eric Fruits, President, Economics International Corp).
Senator Rollie Heath (D-Boulder) is the driver behind Proposition 103 and yet he hasn’t been able to convince Governor Hickenlooper to publicly support it.
Proposition 103 is a bad idea, passing it would not be good for Colorado.
For more information about Proposition 103, please refer to Too Taxing For Colorado’s website www.tootaxing.org, and Save Colorado Jobs’ website http://savecoloradojobs.org along with the Colorado General Assembly’s Legislative Council’s 2011 State Ballot Information Booklet, “Notice Of Election To Increase Taxes On A Citizen Petition”, www.colorado.gov/lcs , Ballot & Blue Book.