By Tim Schimmel
I recently came across the “Judicial Hellholes” report, which has left many business owners feeling sad, fearful, and distraught. In our community, businesses are being hit with an alarming number of frivolous lawsuits, often spurred by viral social media videos showing employees how to get fired and hire attorneys who know that settling is cheaper than proving innocence. Other times, these attorneys will contact terminated employees—often when they know their unemployment benefits are nearing the end, and “educating” them about their “rights.”
It’s unfathomable that a couple could pour their life savings into starting a business, only for an employee they provided a job to have more rights than them. This trend has become a dangerous game for small business owners, who often can’t afford the legal fees, forcing them to settle large sums that threaten their livelihood and the future of their businesses.
As someone who has lived in Yolo County for decades, I’ve witnessed firsthand how these constant lawsuits have taken a toll on small business owners. The legal system is being exploited by predatory lawyers looking to make a quick buck, leaving our businesses vulnerable and unprotected. It’s infuriating to see how these meritless claims, driven by social media and new legal loopholes, are putting small businesses at risk.
At this rate, small businesses in California should be added to an extinction list, as the playing field increasingly caters to large corporations. The legal environment here is stacked against small, family-run operations that cannot afford the costly settlements and legal battles that bigger companies can absorb with ease. Our employment attorney firm has even claimed that at least one business closes or relocates out of California from their client list every week due to these issues.
The situation has only worsened since the law changed a few years ago, preventing employees from being held accountable for filing frivolous lawsuits by exempting them from paying attorney fees when they lose. While this might be manageable for large corporations, which can absorb the cost of higher insurance premiums, small businesses simply cannot. The disparity is clear—what is a minor inconvenience for a large corporation could be a death sentence for a small business.
It’s no surprise that California is ranked as the No. 3 Judicial Hellhole this year. After all, California has topped the Judicial Hellholes report rankings for eighteen consecutive years. If this harmful pattern of baseless lawsuits continues, our local communities will suffer, and California will never escape this notorious list.
The California Senate and State Assembly have been dragging their feet on legal reform bills that could help protect small businesses. Their lack of urgency raises serious questions about their priorities. Californians are fed up with elected officials who fail to advocate for our best interests, allowing these injustices to persist.
It is imperative that our legislators stop making empty promises and start protecting small businesses like mine. This isn’t just about fixing a broken justice system; it’s about preserving our communities and preventing further harm. Every time a business closes its doors because of these legal challenges, our community loses something irreplaceable.
Join me in urging California’s lawmakers to recognize the devastating impact of these civil injustices and take meaningful action. We must safeguard the prosperity of our small businesses and ensure that California is no longer tarnished by the Hellholes title.
