Hospitality Industry Loses COVID-19 Lawsuit Against State of Illinois

May 4, 2021

Hospitality jobs in Illinois have declined nearly 52 percent since the pandemic began, according to new data, as lawsuits continue against the governor’s orders to close nonessential businesses. While leisure and hospitality jobs were hit the hardest, the number of small businesses open in Illinois overall has fallen by about 36.5 percent, as of March 20, compared to last January, based on data compiled by Opportunity Insights, a nonprofit group at Harvard University.

Opportunity Insights’ data shows a significant number of closures following the governor’s stay-at-home order which took effect in March and continues to the end of May. The percentage of small business closures in Illinois was about 5 percent in early March 2020, and reached more than 42 percent on March 29 2021, according to the data. The decline in Illinois’ small businesses is similar to the national trend for the same time period. Nationally, the number of small businesses decreased by about 34 percent, with about a 51 percent decline in leisure and hospitality jobs, according to the data. The data is based on small business transactions and revenues from Womply, a company that aggregates data from several credit card processors to provide analytical insights to small businesses and other clients.

The data also shows that small business revenue overall in Illinois fell by nearly 28 percent from January 2020 to March 20. The amount of total revenue from hospitality and leisure businesses specifically saw a 57.9 percent decrease in that period. Nationwide, small businesses overall experienced a 24 percent decrease in revenues, with revenues for leisure and hospitality businesses falling roughly 53.4 percent from January 2020 to March 2020.

In mid-May of last year, a group of individuals and businesses — including a car repair shop, restaurant and pet groomer — sued Pritzker in federal district court in Chicago. They argued Pritzker’s executive orders violated the “takings” clause of the 5th Amendment and violated their rights to due process. Last week, a federal judge dismissed the case. Judge Franklin Valderrama found the businesses’ claims were barred by the 11th Amendment, which provides general immunity to states from lawsuits by individuals.

If you have any questions regarding your rights as a business or how the current orders affect your business please contact the attorneys at Rock Fusco & Connelly, LLC.

 

 

 

 

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