Headline: "Girls’ Nights Out: A Blessing or a Legal Minefield for Small Businesses?"
Subhed: Promotions that were once a boon for businesses are now causing legal headaches due to discrimination laws.
Byline: Nueva York, CNN
In the past, "Girls’ Nights Out" have been a great success for businesses. These events, offering discounted drinks or meals, would attract large groups of women, which in turn would draw in more men, resulting in packed bars and increased sales. However, this long-standing strategy is now facing legal challenges in certain states.
One such incidence involved John Marquez, owner of Lima, a Peruvian restaurant in California. Marquez was sued for hosting an event promoting "Girl’s Night Out," which offered discounts for women on a Tuesday night. The lawsuit, filed by Alfred Rava, a lawyer known for pursuing similar cases, alleges that the event violated the state’s Unruh Civil Rights Act of 1959, which prohibits businesses from discriminating based on religion, race, and gender.
Rebecca Nieman, a professor of business law and ethics at the University of San Diego, notes that many small business owners may not be aware of such laws. "These small, family-owned bars might not even know about this law," she said. "That’s why we still see these cases happening."
While many cases are settled out of court, due to the high legal costs and tight profit margins of businesses, Nieman warns that if the business is indeed discriminating, they may not prevail in court. "Even if most businesses don’t intend to discriminate," she added, "if they’re in violation of California law, unfortunately, they’ll likely lose in court."
California is not the only state with such laws. According to the Movement Advancement Project, at least 22 states and the District of Columbia have explicit laws against gender discrimination in public places.
For small businesses, defending against these lawsuits can be challenging, even if they have liability insurance. Lawsuits can exceed policy limits, legal fees can accumulate, and some policies may have exclusions that do not cover certain claims.
To navigate these complexities, business owners are advised to ensure they understand what their insurance policies cover, and to consider increasing their liability limits. Furthermore, operating as an LLC or corporation can help protect personal assets in case of a lawsuit.
In light of these legal permutations, businesses must carefully evaluate their promotional strategies to avoid potential discrimination pitfalls, even if it means rethinking popular events like "Girls’ Nights Out."
This article is for informational purposes only and does not constitute legal advice. Business owners should consult with a legal professional for advice tailored to their specific situation.
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