Utah has earned a reputation as one of the leading states for business, but new legislation is raising concerns among small business advocates. Senate Bill 211, currently under consideration, would prevent compensation paid in civil cases from being admissible as evidence. Critics say this change could result in “phantom damages” being awarded in lawsuits.
According to opponents of the bill, instead of limiting damages in civil cases, Senate Bill 211 could lead to higher payouts. This may ultimately increase insurance rates for small business owners throughout Utah.
“The cost of doing business has risen drastically in recent years, and this bill would exacerbate the fiscal pressure on law-abiding small business owners,” a statement from the National Federation of Independent Business – Utah said.
The organization is encouraging individuals to contact lawmakers and share their personal experiences regarding tort reform and its potential impact on businesses.