Running a small business in New York is challenging due to the state’s complex compliance requirements and liability environment. Forbes has ranked New York as the second worst state to start a business, citing these issues as contributing factors to increased costs for families.
Ashley Ranslow, NFIB New York State Director, expressed concerns over proposed legislation in Albany that she believes would exacerbate these challenges. According to Ranslow, the legislation would facilitate what she describes as legal shakedowns by allowing attorneys to target small businesses with accusations of “unfair” practices, leading to costly settlements or lengthy court battles.
Ranslow argues that such proposals act like a private tax on small businesses, empowering lawyers to extort monetary settlements. This situation leaves business owners with difficult choices: settle quickly or face expensive legal proceedings.
The bill’s lack of clarity on what constitutes “unfair” practices could lead lawyers to interpret standard business activities as potential threats. This uncertainty may result in higher prices for consumers and decreased earnings for businesses due to increased legal costs.
Ranslow highlights the financial impact on households, noting an estimation that excessive lawsuits cost New York families $7,914 annually. She calls for lawmakers to reject this proposal and similar ones, advocating instead for policies that promote affordability and support both business owners and families.
Ashley Ranslow serves as the New York State Director for the National Federation of Independent Businesses (NFIB), which has been advocating for small and independent business owners across America for 80 years.
