The 2025 session of the Utah State Legislature is not even a month old and already NFIB Utah is in the thick of some behind-the-scenes lobbying to head off or amend possible passage of a proposal to increase an employer’s liability for an employee’s actions.

Utah is risking its long-standing, pro-small-business reputation should such a measure pass. Further details will be forthcoming, because NFIB is working with all parties to find the best corrective at the moment.

The business community works to give folks a chance when hiring. Frivolous lawsuits are one of the quickest ways to shudder a small business that can’t afford to lawyer-up and fight them.

A lawsuit is no small matter to small business. The law firm of Novian & Novian says, “On average, it costs employers around $75,000 to work with an employment lawyer to settle a claim before it reaches trial. However, if the case progresses to court, the expenses can skyrocket, with pre-trial defense costs easily exceeding $125,000.”

Utah’s high standing as a pro-small-business oasis among organizations and media that compare states to one another is due in big part to it being less litigious than the rest of the nation. It was the first state to protect small businesses from a rash of potential COVID lawsuits from employees and customers claiming they contracted the virus at a place of business when it could have been contracted anywhere.

Speaking of Lawsuits

The old adage that an ounce of prevention is worth a pound of cure is nowhere on better display than on the NFIB Small Business Legal Center webpage, where you’ll find a treasure trove of information on compliance and keeping yourself out of court. We highly recommend members and other small-business owners make it a habit to check it periodically.

As a sample, on the Center’s Legal Blog, you’ll find such recent stories as:

• Are You Classifying Your Employees Properly? NFIB’s New Guide to Independent Contractors Can Help.
• ADA Website Accessibility – How to Avoid Lawsuits
• Federal and State Labor Poster Obligations
• Tips for Finding a Reputable Attorney

Other posts provide insights on drug testing, protecting workers from heat, and maternity leave, just to name a few.

And in the Legal Support section, you’ll find such helpful information as, A Model Employee Handbook for Small Business.

Let’s Keep it Down

In NFIB’s latest Small Business Problems & Priorities report, which ranks the 75 issues of concern to Main Street enterprises, The Cost and Frequency of Lawsuits/Threatened Lawsuit came in at No. 72, a drop from 69 in 2020’s report.

That low standing, however, is a partially the result of the hard work NFIB members put in answering their calls to action on state and federal issues. So, keep up the good work.