As lawmakers pursue expanding liability protections for businesses amid the COVID-19 pandemic, a poll by the National Federation for Independent Business (NFIB) finds nearly 70% of small business owners concerned about an increase in liability litigation.
Many businesses are eager to reopen, but the liability issues present a potential roadblock.
“We are in regular communication with the governor’s office and leaders in the capital, and we’re encouraged to see us pivoting more toward reopening, but we need our policy makers to make it clear,” John Kabateck, NFIB California State Director told the Northern California Record.
“We unfortunately anticipate the next tidal waves of problems to come from self-serving plaintiff’s attorneys looking to make a quick dollar shaking down mom-and-pops, so small businesses need to have some protection from frivolous lawsuits,” Kabateck said.
As shown in the NFIB poll results, “Another significant concern for many small business owners is increased liability. Virtually all small business owners are, to some degree, concerned about increases in liability claims with 38% very concerned about increased liability when re-opening their businesses.” Another 30% percent are moderately concerned, and only 6% said they are not at all concerned.
California’s regulatory conditions have caused some businesses to leave the state or shut down entirely.
“We’ve seen it with a number of laws and PAGA (Private Attorneys General Act), and there’s no doubt in my mind that plaintiff’s attorneys will find a way to twist the law and prey upon fragile, unknowing, uncertain small business owners during this reopening process,” Kabateck said.
“We’re encouraging small businesses to keep ahead of the game, keep ahead of changing laws, and policy makers have to make sure there is some level of protection for them,” he added.
Businesses have been told more clarification is on the way, but it’s even more vital as San Francisco and other more populous regions start to reopen.
“In a recent call with the governor, we got guidance on hygiene, handwashing and customer spacing, but we walked away scratching our heads as to what is mere suggestion and what is actually a mandate. We need notice requirements and guidelines on the legal front, or hundreds if not thousands of small businesses will be vulnerable,” Kabateck said.
The NFIB is part of a coalition urging Gov. Gavin Newsom to issue an executive order addressing liability protections amid the COVID-19 pandemic.
“We have faced these issues before with ADA and Proposition 65, and to Democrats’ and Republicans’ credit, they have made some reforms in those areas, but we really need it now in light of this terrible statewide and global disaster,” Kabateck said.