Liability Protections for "Microcenters" Can Grow Child Care Slots for Tennessee's Labor Force

There's some good news for Tennessee business operators concerned about lack of child care to serve the needs of our state's labor force, with the introduction of new legislation in the General Assembly that aims to address the availability and affordability of this critical resource for Tennessee workers.

What it is:  Among the bills is the proposed Tennessee Child Care Hosting Safe Harbor Act (SB1683/HB 1965), introduced this month by Senate Speaker Pro Tempore Ferrell Haile (R-Gallatin) and filed for introduction by House Judiciary Chairman Andrew Farmer (R-Sevierville).

What it does: Sen. Haile and Rep. Farmer's legislation seeks to mitigate a barrier to child care availability identified by providers seeking to create new, small care facilities located in close proximity to working Tennesseans.

The bill exempts an employer or host entity from being held liable in a civil action for damages arising from the acts or omissions of a child care provider that is licensed and provides child care services on property owned, leased, or otherwise made available by the employer or host entity.

• The employer or host entity would be exempt from liability so long as damages are not caused by their gross negligence or willful misconduct.

  
  

• Employers or host entities would not be exempt from liability, however, if they operate or manage the child care provider, are licensed as a child care provider, or employ, supervise, or direct the child care provider's staff.

In addition to private-sector employer hosts, SB1683/HB1965 would also protect from liability nonprofit organizations, faith-based organizations, community organizations, educational institutions, and other property owners or lessees which allow a child care provider to operate on property that they own or control.

"[SB1683/HB1965] removes a narrow legal barrier that prevents employers, nonprofits, and faith-based organizations from hosting licensed child care providers, while preserving all safety and accountability standards." --from a recent letter to the General Assembly signed by Tennessee Business Roundtable and other members of the TN Business + Family Forum state business coalition

Why it matters:  Lack of certainty about their potential liability for child care operators' actions has led many employers and other property owners to decline to make such "hosting" arrangements with child care providers.

• Their reluctance, according to providers like the Chattanooga-based Chambliss Center for Children, has prevented Chambliss and other willing providers from extending their operations into new "microcenter" locations.

  
  

• The bottom line? Too often turned down by potential site "hosts", child care providers have limited ability to grow the number of slots available to serve hundreds of thousands of Tennessee parents - many of whom must first have access to affordable, quality child care before they can 'report for duty' in our state's labor force.

What they're saying:  Former Tennessee Business Roundtable Chair Mike Harrell (Latitude Advisors LLC, Chattanooga) has seen first-hand how local child care providers successfully utilize such "microcenter" arrangements to grow the number of available child care slots.

• "Chambliss has been using microcenters in Hamilton County for 20 years. After my daughter had her son 16 years ago, she was able to place him in a microcenter child care facility and get back to the workforce faster."

Harrell sees the Haile/Farmer legislation as a win-win for employers and parents.

"This safe harbor act is another layer of protection for businesses to utilize this resource for their employees. It's a creative way to increase workforce participation through reducing frequent child care barriers." --Business owner and past Roundtable Chair Mike Harrell (Latitude Advisors, LLC, Chattanooga)

What's next:  SB1683 is on the calendar for the Senate Judiciary Committee's next meeting on Tuesday, February 3. Roundtable member executives will attend the meeting in a show of support for Speaker Haile's bill.

And also:  SB1683/HB1965 is but one of three legislative proposals developed by Tennesseans for Quality Early Education (TQEE) which aim to expand access to affordable, quality child care for working Tennesseans.

• Go deeper: Learn more about the child care solutions developed by TQEE and supported by the TQEE-led TN Business + Family Forum alliance here.