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| Coloroad House kills bill to expand employer lawsuits |
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Denver Business Journal - by Ed Sealover
A divided Colorado House of Representatives killed a proposal Thursday that would have extended anti-discrimination protections to workers at the smallest companies in Colorado and increased the money that plaintiffs could have won in lawsuits.
House Bill 1269, sponsored by Rep. Claire Levy, D-Boulder, fell after Republicans and a handful of Democrats argued that the added costs of insurance rate hikes and fights against frivolous lawsuits might push businesses now on the edge to close. The bill had been listed by every major business group in the state as one of the most threatening in this year’s legislative session to job creation.
Federal anti-discrimination protections, including the ability for plaintiffs to collect attorneys’ fees and compensatory damages, apply only to companies of at least 15 people. Colorado is one of nine states that have not extended them through state law to businesses of all sizes.
Levy said the bill was necessary to protect employees of small businesses who do not now have the same shield from gender or sexual harassment. She noted that money would only be recoverable when the violation was intentional, that complaints would have to be filed with the Colorado Civil Rights Division to fit under the law, and that compensatory and punitive damages would be capped at $25,000 in her bill.
But Rep. Amy Stephens, R-Monument, said that because insurance companies would raise rates on every business to make up for the expected increase in lawsuits, even the most professional companies would suffer. And small businesses that do not have the resources to defend against frivolous lawsuits or cover the costs that come about because of this bill would suffer the most, she said.
“Because these are tough economic times, we have businesses in the state — particularly businesses with 15 or less employees — wondering how they’re going to get it done,” Stephens said. “And now one more stress, one more insurance payment has to be made for what, so they can be sued?”
Added Rep. Joe Rice, D-Littleton: “What I fear here is that by implementing this bill the way it is, we are taking it too far and there are a lot of small businesses that will be burdened with legal fees ... when things are just starting to turn around and they’re starting to focus on the business.”
Rice attempted to amend the bill to make its protections extend to government employees as well as to workers in private businesses. But Democrats argued that such an addition would cost the state too much at a time when it is struggling to close a $1.3 billion shortfall in next year’s budget.
However, five Democrats joined with all 27 Republicans and unaffiliated Rep. Kathleen Curry of Gunnison to defeat the bill on a 32-32 vote, with one GOP legislator being absent from the discussion. The five Democrats who voted against it were Rice, Rep. Ed Casso of Thornton, Rep. Wes McKinley of Walsh, Rep. Jim Riesberg of Greeley and Rep. Christine Scanlan of Dillon.
esealover@bizjournals.com | 303-831-0230 |
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