by Hans Bader
Anti-discrimination legislation under consideration by the Virginia state Senate would shrink the value of the state’s economy and fundamentally alter its business climate.
The “Virginia Values Act,” introduced by Sen. Adam Ebbin, D-Alexandria, would subject even small businesses to unlimited compensatory and punitive damages in discrimination lawsuits and order businesses to pay the lawyers’ bills of the workers, tenants, or customers who sue them. The bill also would let Virginia’s Attorney General sue businesses for a $50,000 fine. But if a business proves itself innocent, it would receive nothing under the Virginia Values Act — no reimbursement of its attorney fees.
The legislation is very one-sided. If the “Virginia Values Act” become law, many businesses will have a powerful incentive to pay off people who make even dubious accusations of discrimination. Having to put up with that injustice will discourage people from starting a business in the first place. It will also discourage large companies for expanding into or relocating to Virginia, since plenty of other states don’t impose such onerous damages and fines on companies in discrimination cases.
The Virginia Values Act was introduced on January 8 as Senate Bill 868. It is more extreme than, but in some ways similar to, California’s Fair Employment and Housing Act (FEHA). That law also provides for unlimited compensatory and punitive damages in discrimination cases, and also forces the business to pay the attorney fees of a person who successfully sues it. Continue reading