California Small Businesses Shaken Down by Frivolous Lawsuits: Reform Advocates

In California, 750,000 employees lose their jobs each year due to litigation costs paid by employers, according to a report by Citizens Against Lawsuit Abuse.

Stacked chairs in a restaurant in Costa Mesa, Calif., on Dec. 9, 2020. John Fredricks/The Epoch Times

California small businesses are being shaken down by frivolous lawsuits, with some owners fleeing the state or foregoing their dreams because of the state’s countless laws and regulations, according to business owners and citizens advocating for reform.

Last year, California was ranked the third worst “Judicial Hellhole,” in the country, according to a December 2022 report from the American Tort Reform Foundation, a Washington D.C. nonprofit dedicated to reforming the civil justice system.