NY EMPIRE Act would devastate small businesses

Manhattan Surrogate Judge Gideon Tucker famously wrote in 1866, “No man’s life, liberty or property are safe while the Legislature is in session,” and today, state Sen. Brad Hoylman proves this statement to still hold true.

His latest proposal, the EmPIRE Act, aims to “privatize” labor-law enforcement by allowing anyone to initiate class-action lawsuits on behalf of alleged wage-theft victims.

Senator Brad Hoylman and Assemblywoman Joanne Simon argue that the state Department of Labor is too understaffed and underfunded to effectively handle this issue.

However, instead of funding and staffing the Department of Labor properly, they propose a controversial bill that could lead to profit-driven vigilantism by allowing tort lawyers to file lawsuits against employers in hopes of substantial settlements.

The EmPIRE Act is modeled after a similar law in California that has led to a surge of lawsuits against small businesses and nonprofits. New Yorkers already face challenges from trial lawyers exploiting various legal avenues, and this bill would only exacerbate the situation.

Not only would businesses face increased costs and potential closures due to skyrocketing liability insurance premiums, but the bill could also benefit labor unions and special interest groups that heavily contribute to Albany campaigns.

A poll conducted by Echelon for New Yorkers for Local Business found that only 32% of New Yorkers support the EmPIRE Act once fully explained, highlighting the concerns surrounding the bill.

It is evident that this legislation would harm businesses, increase costs for consumers, and ultimately worsen the state’s business climate. Governor Hochul and moderate legislators should intervene to prevent the EmPIRE Act from becoming law.

It is crucial to prioritize the well-being of businesses and workers in New York State and avoid harmful policies that could further jeopardize the state’s economic health.