Proposed legislation in California would give businesses immunity from COVID-19 lawsuits as long as they comply with all state and local health laws, regulations and protocols.
“This is a time to encourage entrepreneurs and support struggling enterprises,” AB 1313 states, introduced by Assemblyman Frank Bigelow, (R-O’Neals).
Economic activity in California has “plummeted” during the COVID-19 pandemic, the bill states.
Bigelow
“The depth and speed of the decline rivals that of the Great Depression,” it states. “It is therefore imperative that we act thoughtfully and courageously to recover from this devastating toll by improving business confidence to operate.”
Immunity from COVID-19 lawsuits for business that comply with health regulations business confidence, increase investments and limit the economic damages of the crisis, the measure states.
“As businesses are the backbone of our economy and the financial engine that will allow the state to recover post-COVID-19, they need liability protection to continue serving the public and providing necessary jobs,” according to the bill. “California cannot afford for businesses to delay reopening because of the fear of frivolous lawsuits.”
Under the proposed legislation, “a business shall not be liable for an injury or illness to a person due to coronavirus based on a claim that the person contracted COVID-19 while at that business, or due to the actions of that business, whether direct or indirect, if the business has substantially complied with all applicable state and local health laws, regulations and protocols.”
It does affect employee claims for worker’s compensation.
Bigelow did not respond to a request for comment from the Northern California Record.
The Civil Justice Association of California declined to comment. The group has previously called for COVID-19 liability protections for small businesses.
"California businesses are in survival mode, yet they are working in amazing and heroic ways to respond to the crisis," the organization said on its website. "They should not be punished with class actions and private rights of action that attempt to capitalize on this crisis. Our businesses and the economy cannot sustain further damage."
The California chapter of the National Federation of Independent Businesses also plans to be the “lead sponsor on a business liability protection bill” the group said on its website, which also mentioned Bigelow’s bill.