Our employers need talent. Occupational licensing reform is a solution.
By Eric Miller
Owner, Labor Depot LLC.
Colorado is at a job vacancy crossroad. The Centennial State is in many ways a great place to do business, and our legislature has demonstrated time and again a commitment to supporting employers and employees from Denver to Durango. This year was no exception: legislators took decisive action and passed HB24-1004, a bill that will grow our economy, encourage entrepreneurship, and make our communities safer. As a Colorado business owner, I applaud their decision and the benefits it will bring to all Coloradans.
As the unemployment rate has returned to pre-pandemic levels, businesses are struggling to find qualified talent. There are only 52 available workers for every 100 available positions. I am the proud owner of Labor Depot LLC., a staffing and temporary employee company. We provide highly-qualified short-term workers to companies in the Denver and Colorado Springs area. Because of our business, we know exactly how challenging the hiring shortage has been for employers across the state. Those of us who support the construction trades are no stranger to these conditions. We have faced a labor shortage that has gone on for decades.
For Labor Depot, hiring justice-impacted workers has been one of our solutions. We believe in providing our customers with the workers they need to succeed while creating meaningful job opportunities for our employees. We understand that people make mistakes – but we are always willing to consider giving someone another chance.
National data backs up what we have learned first-hand. More than 80% of business leaders rate the work of their justice-impacted employees the same or better than that of workers without records. Second chance employees have a lower turnover rate, saving businesses critical dollars on hiring and retention costs. In turn, these businesses see increased support and applicants – nearly three-quarters of all workers said they would prefer to work for a company with fair-chance hiring practices.
Those of us that work in the construction industry are lucky – we are able to tap into this justice-impacted workforce to supplement our talent needs. Other employers do not have this luxury. Nearly one in six working Coloradans requires an occupational license to do their job. Individuals with old criminal records – even for crimes not at all related to their field of work – can face serious obstacles in acquiring these licenses.
Thankfully, the Colorado legislature has passed into law a solution. HB 24-1004 will ensure that individuals with old criminal records are only denied a license if their criminal record “directly relates” to their ability to safely perform the duties of the occupation. It also requires licensing bodies to give individualized consideration to applicants with criminal records, ensuring they are not subjected to discrimination from often baseless stereotypes. Finally, this bill aligns Colorado with 21 other states and allows individuals to find out if they are eligible for a license before investing the time, money, and resources needed to apply.
Our workforce needed these changes – and our whole state will now benefit. Limited access to licensing costs the U.S. an estimated two million jobs and $6 billion each year. It’s no wonder that nearly 80% of small business owners support reforms that would allow people with old convictions fairer access to occupational licenses. Over the course of the last decade, nearly every state has reformed their occupational licensing system to ease barriers for people with criminal records – with no negative impact on public safety. HB24-1004 will finally bring Colorado in line with our neighbors, expand the talent pool for employers in need of qualified workers, and strengthen the Centennial State’s economy. I commend the legislature for prioritizing Coloradians and our workforce by passing HB24-1004.