NYC business leaders condemn mayor's plan to expand private lawsuits over labor abuses

Mayor Zohran Mamdani unveiled the People and Organizations Winning Economic Relief Act, which would add a private right of action to New York City’s consumer protection statutes, permitting individuals and organizations to file suits alleging unfair, deceptive, abusive or unlawful business conduct. Mamdani framed the initiative as a step toward giving working-class New Yorkers more power to challenge corporate misconduct.

Business representatives quickly pushed back, arguing the measure would increase costs for companies and expose small employers to costly, meritless lawsuits. Steven Fulop, president and CEO of the Partnership for New York City, warned that the proposal would make it more expensive to operate, invest, hire and grow in the city. Jessica Walker, president and CEO of the Manhattan Chamber of Commerce, likened the bill to “lawsuit mills” that target family-owned and immigrant-run businesses. Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, said the legislation incentivizes abusive litigation and would enrich trial lawyers while burdening consumers with higher prices.