With new data showing California leading other states in COVID-19 litigation filed against small businesses, it’s raising questions about how they will be impacted as new federal workplace vaccine mandates take effect.
California businesses have been hit on multiple fronts throughout the Covid pandemic, Kyla Christoffersen Powell, president and CEO of the Civil Justice Association of California (CJAC) said in an email response to the Northern California Record.
“From lost profits and shutdowns to being targeted with workplace lawsuits,” Powell said. “Studies show there has been a spike in lawsuits nationally in recent months, and California is far outpacing other states with more than double the suits of the next highest state, New Jersey.”
Under new rules announced by the Biden administration earlier this month, Covid vaccines or weekly testing will be required for businesses with 100 or more employees. While the federal mandate might stave off some of the liability concerns that can arise from such requirements, it’s not known what that means for smaller operations.
“Small businesses have been disproportionately impacted – seeing more lawsuits than larger companies and less equipped to weather litigation burdens,” Powell said. “Even a single lawsuit can shut the doors of a small business, particularly when they are already struggling financially due to the pandemic.”
Dozens of hospitality businesses are among the many that have closed down or reduced operations in the Bay Area, according to Eater San Francisco.
Last year, CJAC co-sponsored legislation to provide liability protections for small businesses and nonprofits that have met government safety protocols, but the legislation did not receive a hearing.
Nearly half of California’s workers are employed by small businesses.
“The effects of the pandemic have been real and difficult for California business, and California leaders need to do more to promote their survival and recovery,” Powell said.