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 Is California’s Legal Complex Driving Out Businesses?

Is California’s Legal Complex Driving Out Businesses?

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Oct 30, 2026

Is California’s legal system driving small businesses out of business? Gubernatorial candidate Steve Hilton argues that tort law, settlement shakedowns, and the Private Attorneys General Act (PAGA), originally intended to protect workers, have created a lucrative industry for trial attorneys. He says California’s increasingly complex labor laws have enabled what amount to legal shakedowns, where even minor violations can trigger multimillion-dollar claims and force employers into costly settlements. Meanwhile, lawyers and the government can collect significant portions of the money. Is California’s labor-law system driving businesses out of the Golden State, and can it be fixed?

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