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Friday, April 19, 2024

Op-Ed: Legal Reforms Needed to Spur Small Business Growth

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Over the years, I’ve had the amazing and eye-opening opportunity to start several small businesses in different industries. Each time, it was a rewarding experience that allowed me to get more involved in my community and ultimately benefitted me not just as a businessman, but as a public servant, too. However, that experience also showed me that there are a lot of significant and frustrating roadblocks to others who want to start their own company in Illinois.

Potentially the biggest roadblock for any aspiring entrepreneur in Illinois is the looming threat of lawsuits at just about every turn as they try to get their business off the ground. Fighting and preventing these lawsuits can involve prohibitive legal costs that make it impossible for new businessowners to afford ever opening their doors. 

Unfortunately, there is a long list of reasons that businessowners in Illinois are open to so many frivolous lawsuits. One major contributor to excessive litigation in Illinois is how we handle workers’ compensation claims. Too often, we let workers’ compensation cases go to the courtroom when the best way to handle them would be through an arbitration process that allows both the businessowner and an employee find an arrangement that treats everyone fairly without an overwhelming price tag. 

Another problem that Illinois businessowners face is our state’s complex web of liability regulations that businesses need to navigate. For example, product liability laws in Illinois allow for lawsuits against businesses even in situations where they were not involved or that they couldn’t possibly have prevented. In instances of user error or where someone doesn’t follow a product’s instructions closely enough, Illinois makes it too easy for a lawsuit to be filed against the business that stocked the product. It is an unfair standard that sets unrealistic responsibilities on new businessowners.

Similar to product liability, premises liability regulations – which hold businessowners responsible for accidents that happen at their place of business – allow for lawsuits per these unfair standards. Safety is top priority both for myself and every entrepreneur I know, but that doesn’t mean accidents can’t happen. Unforeseen problems can arise, and our liability laws should recognize that so lawsuit expenses don’t consistently put entrepreneurs out of business.

Of course, none of this is to say that people shouldn’t be compensated when they need to be. There are plenty of lawsuits with merit, and those deserve to be taken seriously. However, if we allow these kinds of loopholes to remain on the books, there will always be at least a handful of trial attorneys ready to jump at the opportunity to file a lawsuit, force a big settlement, and walk away with huge fees.

We live in a wonderful state, and if we want to continue to make it better, one of our priorities needs to be fostering a welcoming business climate. By creating an environment where entrepreneurs are free to innovate and create new jobs without mounting legal costs hanging over their heads, we will all be better off. It will encourage aspiring entrepreneurs to make Illinois an even better place and will help to stimulate our state economy from the ground up.

In my numerous public service roles, I’ve witnessed up close just how much small businesses contribute to their communities. Now, it is time for all of us to speak up and show it to our state lawmakers as well. That way, they can finally close the legal and regulatory loopholes that make it harder for businesses to grow and give back to those around them. Once they do, people across Illinois can turn their business dreams into reality without worrying that their aspirations will be stifled in a courtroom. 

Aaron Del Mar is the Chief Executive Office of numerous small businesses and also serves as the Palatine Township Highway Commissioner.

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