Bills encourage frivolous lawsuits small companies can’t afford to fight
PROVIDENCE (March 22, 2018) The Rhode Island House Labor Committee holds a hearing on bills that would bar workplace “bullying” and allow employees claiming to be victims to sue the person they accuse and their employer. You can read testimony on NFIB’s opposition to these bills which give more detail in bold type below. But, first here is what NFIB RI’s State Director Chris Carlozzi had to say about House Bills 7024 and 7679:
“Proponents call this an anti-bullying bill, but we call it a smorgasbord for trial lawyers who will feast on small businesses that are unable to pay to defend against frivolous lawsuits. Laws already exist to address workplace harassment and discrimination, and they cover almost every situation an employee might face.
“Workers who claim they are victims could sue the alleged bully and the employer, even if the company owner had no prior knowledge of the situation. That is absurd, and it defies our sense of justice, especially when many small businesses can’t afford to go to trial and prove otherwise.”
Testimony of Christopher Carlozzi, State Director, National Federation of Independent Business
In Opposition to House Bill Nos. 7024 and 7679
Relating to Labor and Labor Relations – Healthy Workplace
March 22, 2018
Chairman Craven and Members of the House Labor Committee:
My name is Christopher Carlozzi. I am the Rhode Island Director of the National Federation of Independent Business (NFIB). A non-profit, non-partisan organization, NFIB is the nation’s and Rhode Island’s largest small business advocacy group. In Rhode Island, NFIB represents hundreds of small and independent business owners involved in all types of industry, including manufacturing, retail, wholesale, service, and agriculture. The average NFIB member has five employees and annual gross revenues of about $450,000. In short, NFIB represents the small Main Street business owners from across the state. On behalf of those small and independent business employers in Rhode Island, I urge you to oppose House Bill Nos. 7024 and 7679, regarding so-called workplace bullying.
Proponents of these bills claim that existing discrimination laws do not cover bullying in the workplace and this legislation will remedy the oversight. But these bills are an extreme resolution to a problem that is truly rare in a small workplace. They create a new private cause of action in an already litigious society when similar torts such as intentional infliction of emotional distress and interference with contractual relationships are readily available. And state laws and regulations concerning employment discrimination and harassment are currently utilized and in place.
While these bills have been modified from previous versions to allow corrective actions for shoddy work, poor work habits, and a supervisor’s verbal attempt to improve an employee’s work performance, they could still lead to baseless accusations and cost business owners time and money dealing with unnecessary lawsuits and be devastatingly expensive. Aside from allowing the supposedly bullied individual to sue the so-called aggressor, the bill would make the business owner accountable as well, whether-or-not the owner had prior knowledge of the situation. The party filing the claim can also seek damages, including punitive damages, for lost wages, emotional distress, and other claims of injury.
These bills are needless and meddlesome legislation that will only lead to more litigation, additional frivolous lawsuits, and higher costs for the state’s small businesses. Its vague language leaves employers with more risk and at a legal disadvantage, where the costs of litigation and defense mean the small business owner is a financial loser the moment the lawsuit is filed.
I strongly urge you to oppose House Bill Nos. 7024 and 7679, an extremely harsh proposal that will negatively impact Rhode Island small businesses. Thank you.
