Welcome to the Small Business Run Down. Each day we bring you stories and trends that impact small business owners and their workforce.
Today we take a look at the debate around Colorado’s proposed paid family leave legislation, the role credit scores play in small business lending, and sexual harassment training in the Big Apple. Let’s get this party started…in a work-appropriate way, of course.
Small business impact stalls paid family leave legislation in Colorado Senate
As the debate about paid family leave heats up on the national level, Colorado and a number of other states have introduced bills to provide benefits for workers who need to care for family under a variety of circumstances. Under Colorado’s proposed legislation, workers and employers would share the cost of the benefit, with employees and employers both kicking in approximately 0.32% per week of an annual salary in return for twelve weeks of paid time off. Republican lawmakers in Colorado have voiced concerns about the impact this would have on businesses, particularly small businesses.
The Number: $671. A study by the University of Denver estimates that the workers would receive an average of $671 per week, for up to twelve weeks, while out of work.
The Quote: “And even though there is a small amount of financial expense associated with this, the additional disruption the other elements this bill puts on business may force some of these businesses, especially small businesses, out of business.”
Credit score not only metric considered by Fintech companies for small business lending
Stringent credit score requirements often eliminate small businesses from securing the financing needed to expand or grow at a consistent pace. Though the Small Business Administration’s lending programs may place less emphasis on credit than traditional lenders do, fintech companies offer startups and small businesses another source of funding based on overall fiscal health and average monthly revenues.
The Number: 300. Traditional lenders and the Small Business Administration use FICO’s Small Business Scoring Service, which sets a perfect score at 300, as the primary means of gauging a business’s ability to repay a loan.
The Quote: “As a result, only companies with very specific profiles and funding needs are able to find exactly what they need from traditional lenders, which is why the emergence of fintech in the business lending space has been such a game-changer.”
Sexual harassment training law goes into effect today in New York City
New York became the first city in the nation to enact mandatory sexual harassment training laws for all business with fifteen or more employees. The law, which went in effect today, April 1, 2019, requires interactive training for employees who work more than eighty hours or ninety days in a calendar year. A similar law went into effect for all private companies in New York state in October 2018, so employers would be wise to find a single training program that meets both laws’ requirements.
The Number: 15. Any company with more than fifteen employees who meet the criteria must provide annual interactive anti-sexual harassment training beginning April 1, 2019.
The Quote: “NYC-based employers that do not meet this threshold can stop right here, keeping in mind, however, that they still must comply with the State’s training obligation, as that mandate applies to all private employers in New York State.”
Thinking of asking for a salary history? Maybe you should think again…
Lawmakers on Capitol Hill are considering legislation aimed at closing the wage gap between men and women by making it illegal to ask for a salary history from potential employees. The Paycheck Fairness Act was introduced to the Democrat-controlled House of Representatives while its companion bill is set to go before the Republican-controlled Senate.
The Number: 240. Representative Rosa DeLauro from Connecticut sponsored the legislation and she has 240 cosponsors for the bill, including every other democrat and one republican in the House of Representatives.
The Quote: “The measure may not prevail in the Republican-controlled Senate where GOP leaders have fought the bill, saying that it is unnecessary since gender-based discrimination is already illegal…”