Business leaders were disappointed that embattled Gov. Gavin Newsom did not mention legislation that would protect business owners from frivolous coronavirus lawsuits during last week's state of the state address.
“We would have liked to have heard more about small business legal and liability protection,” said John Kabateck, director of the state National Federation of Independent Business.
“The next frightening freight train rounding the bend is likely to be filled with scheming plaintiff's attorneys seeking to prey on uncertain and unknowing mom and pop businesses. We fear many small business owners will be victimized by scheming lawyers trying to make a fast buck and not seek justice.”
Nearly 70% of small business owners are concerned about liability claims increases, according to an NFIB survey.
“One of the things that we would have liked to have him state and that we hope he will reiterate throughout this year is urging the legislature not to place any more burdens on small businesses as the economy now begins to reawaken,” Kabateck told the Southern California Record.
As previously reported, two more weeks of paid family leave were added and the minimum wage was increased to $14.
“We don't need more regulations, leave programs, or workers' comp because California is robust in those areas but if our policymakers are so impassioned about pushing them forward, why not make the state pick up the tab,” Kabateck said. “Our policymakers have got to remember that a small business owner does not magically have these dollars growing in their backyard and so that kind of support has to come from somewhere else.”
In addition to investing $10 billion in roads, rail, bridges, and public transit, Gov. Newsom said $2.6 billion is earmarked for grants to give up to $25,000 to small businesses and non-profits impacted by the pandemic.
“In every community where nonprofits exist, many small businesses also thrive, rely on, and subsist and so there's a ripple effect,” Kabateck said. “When any entity be they nonprofit or for-profit in a community of any size grows or disappears, the small businesses in that community are directly and proportionately impacted.”
Gov. Newsom added that three-quarters of the grants have been gifted to minority-, women-, and veteran-owned businesses and those serving rural and low-income communities.
"Early on the governor had called for aggressive prioritization of green and clean energy jobs in this COVID crisis but let's not forget that there are more colors on the job and economic spectrum than just green," Kabateck said.
"We've got millions of other small business owners that may not fall into that category but are desperately hanging on by a thread. We want to make sure the governor and our policymakers do not forget that there are many, many others beyond these select categories that are also very much struggling, uncertain, and scared."