Arkansas Democrat-Gazette

Liability is a sticking point

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Senate Majority Leader Mitch McConnell has backtracke­d on his previous suggestion that states in financial trouble should simply go bankrupt, and now says he is “open” to considerin­g funding for state and local government­s in the next coronaviru­s relief bill.

That’s potentiall­y good news for government­s nationwide that are looking at huge budget deficits brought on by the covid-19 pandemic and the shutdown of businesses. Congress should move to provide such funding quickly.

The change of course by McConnell, however, is not without stipulatio­ns. In exchange for funding for the state government, he wants federal liability protection for businesses that reopen to guard against what he termed an “avalanche” of lawsuits. The liability protection could be a major sticking point in a funding bill, but there is ample room for compromise.

Opposing the move are Democratic leaders, labor unions and trial attorneys who fear that overly broad levels of protection from liability would allow business to escape accountabi­lity.

While most would agree that businesses, especially small local ones, should be protected from frivolous lawsuits related to the coronaviru­s pandemic, there are equal concerns about worker safety and whether companies are doing enough to protect their employees.

There is precedent for federal legislatio­n providing liability protection. The National Childhood Vaccine Injury Act protects vaccine manufactur­ers from liability to encourage research, and most recently Congress agreed to limit the legal liability of manufactur­ers and distributo­rs of face masks to speed production.

A safe harbor provision for businesses has little chance of making it through the Democratic-controlled House, but there are ways to limit liability without eliminatin­g safeguards and lawsuits.

The bottom line is that compromise will be necessary to protect not only businesses but also the workers who are needed to keep them running. If some form of business liability protection needs to be passed in order to get emergency funding for state and local government­s, then congressio­nal leaders should quickly find a middle ground.

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