Carson City, NV – As the 2025 Nevada State Legislature gathers momentum, the National Federation of Independent Business (NFIB) remains vigilant. This session, they are closely monitoring any legislative proposals that could potentially escalate operational costs or increase the vulnerability of small business owners to lawsuits.
Litigation represents a heavy burden for small enterprises. According to the legal experts at Novian & Novian, the average cost for an employer to settle a claim with the assistance of an employment attorney before going to trial is about $75,000. This figure can leap beyond $125,000 if the matter progresses to court without a pre-trial settlement.
A particular legislative phrase causing concern is “Private Right of Action.” This term represents a legal provision that could permit employees to initiate lawsuits directly against their employers, bypassing traditional state agency channels. Such legislative frameworks can also enable third parties to represent employees in these suits.
The experience of California serves as a warning. Over two decades ago, California enacted the Private Attorneys General Act (PAGA) to streamline the process for employees to air grievances against their employers. However, this well-intentioned act morphed into a profit generator for attorneys, often at the expense of the employees it aimed to protect. Recognizing the problematic application of the law, recent reforms were negotiated to adjust PAGA, spurred by pressures from a potential ballot initiative last year aimed at its overhaul.
Reflecting on these issues is crucial for Nevada, which seeks to avoid a similar litigious environment that can devastate small businesses unable to sustain costly legal battles.
In terms of how these issues rank in priority, litigation costs are surprisingly low on the list of concerns for small business operators, according to NFIB’s latest Small Business Problems & Priorities report. Lawsuit costs and frequency ranked 72 out of 75 concerns, a slight improvement from its previous ranking.
The relatively lower ranking is partially attributed to proactive engagements by NFIB members who have participated in state and federal advocacy efforts. Continuing this active participation is emphasized as crucial for maintaining manageable operating conditions for small businesses.
For small business owners looking to minimize legal risks, NFIB’s Small Business Legal Center offers a plethora of resources. The center’s website features valuable compliance information and guidance on avoiding legal pitfalls. Regular updates and blog posts on topics ranging from drug testing protocols to maternity leave policies are aimed at helping business owners stay informed and prepared.
Furthermore, the Legal Support section of the website provides practical tools such as a model employee handbook tailored for small businesses, helping them establish clear policies and procedures.
While the information and insights provided aim to be beneficial, it is implanted with the disclaimer that the content was automatically generated and might contain inaccuracies. For corrections or inquiries, contact can be made via email at [email protected].