Brad Close President | NFIB Nevada
Brad Close President | NFIB Nevada
The Nevada State Legislature's 2025 session is underway, with the National Federation of Independent Business (NFIB) closely monitoring legislative proposals that could impact small businesses. A significant concern for NFIB is legislation that might increase litigation against small business owners.
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."
A particular focus for NFIB Nevada is any bill containing the phrase "Private Right of Action." This legal concept allows employees to directly sue employers rather than going through state agencies. Depending on the specifics of such legislation, other parties might also be permitted to sue on behalf of employees.
California's experience serves as a cautionary example. Twenty-one years ago, California enacted the Private Attorneys General Act (PAGA) intending to expedite employee complaints against employers. However, it turned into a lucrative opportunity for lawyers while offering little benefit to workers. In response to potential changes via a ballot initiative last year, some modifications were made in exchange for removing the initiative.
Frivolous lawsuits pose a threat to small businesses unable to afford extensive legal battles. Despite this risk ranking low at No. 72 in NFIB’s latest Small Business Problems & Priorities report—a drop from No. 69 in 2020—NFIB attributes this partly to its members' proactive efforts on state and federal issues.
The NFIB emphasizes prevention as crucial for avoiding costly legal disputes and provides resources through its Small Business Legal Center webpage. Available materials include guides on classifying employees correctly and avoiding ADA website accessibility lawsuits.
For further support, NFIB offers additional resources like a model employee handbook for small businesses.
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