Proposition 1 defines businesses in one of three categories:

• Small (1-15 employees)

• Medium (16-499 employees)

• Large (500 or more)
   

Because the proposition does not differentiate between full and part-time employees, many businesses that are not open full-time hours have many part-time employees.

For example, a restaurant that is only open for dinner service might have 16 employees, thus falling into the 'Medium' category, even though it truly is a small business.

If a locally owned business is part of a franchise, it is considered a 'Large' business, regardless of the size of the locally owned franchise. An example of this would include in-home care for the elderly on a fixed income. If the local care service is part of a franchise, they are deemed a 'Large' business. They cannot charge more for services, as many clients they serve are veterans or on a fixed income.

This business may not be able to operate in Olympia any longer under these proposed new conditions.