Beaver State News

The 2025 session of the Oregon State Legislature is underway, with the National Federation of Independent Business (NFIB) actively monitoring legislation that could increase business costs or facilitate lawsuits against small business owners.

Novian & Novian law firm highlights the financial burden of lawsuits on employers: "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."

NFIB Oregon is particularly attentive to legislative language involving a "Private Right of Action." This allows employees to sue employers directly rather than through state agencies and might permit other parties to file suits on behalf of employees. The Private Attorneys General Act (PAGA) in California serves as a cautionary example. Enacted 21 years ago, PAGA was intended to expedite employee grievances but has primarily benefited lawyers financially. Last year, changes were negotiated in response to a ballot initiative aiming to amend PAGA.

To avoid similar issues in Oregon, NFIB emphasizes the detrimental impact frivolous lawsuits can have on small businesses that cannot afford extensive legal battles.

In NFIB's latest report ranking 75 concerns for Main Street enterprises, "The Cost and Frequency of Lawsuits/Threatened Lawsuit" ranked No. 72. This low position reflects efforts by NFIB members addressing state and federal issues.

The NFIB Small Business Legal Center webpage offers resources for compliance and legal avoidance strategies. Recent blog posts include topics like employee classification guides, ADA website accessibility tips, labor poster obligations, and advice on finding reputable attorneys.

Additionally, the Legal Support section provides useful tools such as "A Model Employee Handbook for Small Business."