Business leaders push back against Mayor Mamdani's private right‑to‑sue proposal
On Oct. 9, 2026, business leaders in New York City publicly opposed Mayor Zohran Mamdani’s proposal to grant a private right of action for suing over alleged labor abuses.
The plan, introduced as the People and Organizations Winning Economic Relief Act, would allow individuals and organizations to file lawsuits under the city’s consumer protection law for unfair, deceptive, abusive, or unlawful business practices, bypassing the need for municipal action.
Critics say the measure could drive up costs for businesses, especially small and family‑run firms, and ultimately raise prices for residents. Steven Fulop, president and CEO of the Partnership for New York City, warned that the proposal would make operating, investing, hiring, and growing in the city more expensive, noting New York’s reputation as a “judicial hellhole” for frivolous lawsuits.
“The Mayor is wrong on this, and New York City’s businesses are not the enemy,” Fulop said. “Those costs do not disappear — they ultimately show up in fewer jobs, less investment, and higher prices.”
Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, echoed those concerns, describing the legislation as “well‑intended” but ultimately “incentivizing abusive litigation practices” through its broad private right of action.
“Sleazy billboard lawyers salivate over legislation like this. They’ll have license to shake down every small business on the block with demand letters and extortionate settlements,” Stebbins said. “New Yorkers already pay more for everything due to the state’s hostile litigation climate. This proposal will make life even more expensive and decimate our neighborhood shops and restaurants.”
Jessica Walker, president and CEO of the Manhattan Chamber of Commerce, warned that the law could become a tool for “lawsuit mills,” targeting small, family‑owned, and immigrant‑owned businesses unable to afford legal defense.
“The easiest targets will be small, family‑owned and immigrant‑owned businesses that can’t afford a lawyer and will settle just to make the case go away,” Walker said. “California learned this the hard way: law firms sued thousands of nail salons, auto shops and restaurants over technicalities until voters had to rein the law in.”
Supporters of the proposal argue it empowers workers and consumers to hold corporations accountable, a point Mayor Mamdani emphasized by calling New York City a “working‑class city” that has lagged in giving people power against corporate abuse.
As the debate unfolds, the mayor’s office has not signaled any immediate changes to the legislation, and the opposition from major business groups suggests the proposal may face significant revisions before it can advance.
