You might think that offering discounts to women on Ladies' Night would boost business, but it can actually put small restaurants out of business. That's what happened to Lima Restaurant in California. The owner, John Marquez, had to close after settling a discrimination lawsuit over a Ladies' Night promotion. This isn't rare. Many small businesses face lawsuits under California's Unruh Civil Rights Act, which says you can't discriminate based on gender, race, or religion.

Rebecca Nieman, a business law professor, explains that small businesses often don't know about these laws. They can't afford lawsuits and usually settle out of court. Even if they didn't mean to discriminate, they might lose in court. For instance, the Fresno Grizzlies baseball team got sued this year.

Some people question the motives behind these lawsuits, calling them opportunistic. Lawyer Alfred Rava has sued many women's organizations and events, claiming they're unfair to men. At least 22 states and D. C. have laws against gender discrimination in public places.

Small businesses are struggling. America is more litigious, and lawsuits are on the rise. Insurance might not help much, as it often doesn't cover discrimination. Businesses need to know what their insurance covers and consider increasing their policies. They should also form a separate entity to protect personal assets.

Ladies' Night Lawsuits: A Tough Lesson for Small Businesses

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