An array of business organizations this week urged Gov. Kathy Hochul in a letter to veto a proposed expansion of New York's wrongful death statute after lawmakers approved legislation that would cover emotional anguish under the law.
Supporters of the legislation have contended the measure is a sorely needed update to the state's more than century-old wrongful law and puts the state in line with other parts of the country that have similar emotional anguish provisions on the books.
But the business community, from local-level organizations to statewide organizations like the Lawsuit Reform Alliance, the Business Council of New York and the New York Farm Bureau, are pushing back against the proposal.
Lawmakers in June gave final approval to a bill that would expand the ability of a loved one to bring a wrongful death claim for an emotional loss or suffering. Current law only covers claims under pecuniary losses — a provision the bill's sponsors disproportionately affects children, people of color and lower-income families.
Business leaders, however, worry the proposal would drive up liability insurance premiums for private and public entities alike.
"Liability insurance premiums are already higher in New York than almost anywhere else in the country," the groups wrote in a letter to Hochul sent this week. "This legislation would make it harder to attract new companies and discourage local entrepreneurs from pursuing their goals and remaining in New York. For businesses already operating in the state, increased liability insurance costs will lead to price increases, pay cuts, and even layoffs – ultimately devastating already-struggling communities."
The measure, as of Thursday morning, was yet to be formally sent to Hochul for her consideration. The groups urged her to veto it when it is and pointed to a measure she struck down last year over concerns it would weigh heavily on liability premiums.
"For the well-being of the economy and communities across the state, we implore you to veto this bill, too," the groups wrote.