Nevada passes covid-19 business liability protection act

On August 11, 2020, Nevada Governor Steve Sisolak signed into law a bill that gives most businesses liability protection from COVID-19 lawsuits. The new law, which was Senate Bill 4 (the “Act”), gives limited immunity from lawsuits to businesses that follow relevant health guidelines to protect their employees and customers from the novel coronavirus.

Since the beginning of the pandemic, I have had many clients ask me about how to protect themselves from the risk of these lawsuits. The Act brings much-needed relief to these small businesses, which have had to balance the need to reopen with the concern that lawsuits from SARS-CoV-2 infections can drive them out of business.

Importantly, the immunity granted by the Act is not absolute. To be immune, a business must demonstrate that it is in compliance with minimum cleaning and safety protocols established by the Department of Health and Human Services. A business that is not compliant with these standards loses the immunity. Moreover, the Act authorizes the Secretary of State to suspend business licenses for companies that don’t comply with these standards.

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