Beehive State News

The National Federation of Independent Business (NFIB) in Utah is actively engaged in efforts to influence legislative actions concerning a proposal that could increase employer liability for employee actions. The 2025 session of the Utah State Legislature has just begun, but NFIB Utah is already involved in lobbying activities aimed at either halting or amending this potential legislation.

Utah's reputation as a pro-small-business state might be at risk if such measures are passed. The NFIB is collaborating with various stakeholders to find an appropriate solution. Small businesses often face significant challenges when dealing with lawsuits, which can be financially burdensome.

According to Novian & Novian law firm, “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 ranking as a supportive environment for small businesses is partly due to its less litigious nature compared to other states. It was notably the first state to protect small businesses from potential COVID-related lawsuits from employees and customers.

NFIB encourages small-business owners to regularly visit their Small Business Legal Center webpage for resources on compliance and legal matters. The center offers guides on topics such as independent contractor classification and ADA website accessibility, among others.

In NFIB’s recent report on Small Business Problems & Priorities, the issue of lawsuits ranked low at number 72 out of 75 concerns for Main Street enterprises. This reflects the efforts by NFIB members in addressing state and federal issues related to litigation risks.