Several legislative changes are set to take effect in 2025 that could significantly impact families and small businesses across the United States. It’s crucial to stay informed about these developments to ensure compliance and adapt to the evolving regulatory landscape.
1. Minimum Wage Increases:
- California: The state continues its phased approach to raise the minimum wage, aiming for $16.50 per hour in 2025.
- Other States: Alaska, Colorado, Maine, New York, and Washington are among the states implementing changes to their overtime and minimum wage laws in 2025. Additionally, 23 states, along with numerous cities and counties, have scheduled minimum wage increases.
2. Privacy Regulations:
The trend of enacting state privacy laws continues, with five new laws already in effect and three more anticipated later in 2025. These laws introduce stricter data handling and storage requirements for businesses that collect customer and employee information.
3. Tax Reporting Requirements:
Businesses must prepare for new tax reporting mandates, including taxes on payments from third-party providers like Venmo and PayPal. Starting in 2025, businesses are required to report earnings exceeding $5,000 for the year 2024.
4. Federal Contractor Minimum Wage:
Effective January 1, 2025, the minimum wage for federal contractors increases from $17.20 per hour to $17.75 per hour, reflecting an annual inflation adjustment.
5. Employment Law Updates:
- California: Amendments to the Healthy Workplace, Healthy Families Act now require paid sick days for agricultural employees to avoid conditions like smoke, heat, or flooding during local or state emergencies. Additionally, the Fair Employment and Housing Act (FEHA) clarifies that protected characteristics include any combination of listed traits or the perception thereof.
6. Federal Policy Changes:
The federal government is implementing various policy modifications, including new labor regulations, tax code adjustments, and changes to subsidies and deductions. These changes could significantly affect small businesses.
7. Corporate Transparency Act Compliance:
The delayed federal Financial Crimes Enforcement Network (FinCEN) registration, part of the Corporate Transparency Act, may become mandatory in 2025. Non-compliance could result in fines, making it essential for small businesses to stay updated on these requirements.
8. Child Tax Credit Expansion:
The “Tax Relief for American Families and Workers Act” proposes increasing the Child Tax Credit to adjust for inflation, benefiting low-income families who meet specific income thresholds. The maximum refundable credit is set to rise incrementally from $1,600 per child to $2,000 per child by the tax year 2025.
9. State-Level Consumer Protection Laws:
- New York: The proposed “Fostering Affordability and Integrity through Reasonable Business Practices” act aims to combat unfair business practices, including AI-related scams and difficult-to-cancel subscriptions. This legislation seeks to strengthen consumer protection laws in response to federal cutbacks.
10. Economic Policies and Tariffs:
The current administration’s stance on tariffs has raised concerns about potential economic downturns. Businesses should monitor these developments, as they could influence inflation rates and operational costs.
Conclusion:
The year 2025 brings a series of legislative and regulatory changes that will affect families and small businesses. Staying informed and proactively adapting to these changes is crucial for compliance and continued success in a shifting legal environment.
Sources
Times Union – NY Seeks to Ban Unfair Business Practices After Trump Agency Cuts
https://www.timesunion.com/capitol/article/ny-seeks-ban-unfair-business-practices-trump-20217543.php
AP News – What changes should small businesses be aware of for 2025?
https://apnews.com/article/6578bd9bada7e640fed270baa8faaf22
BBSI – New Laws & Regulations Small Business Owners Should Know for 2025
https://www.bbsi.com/business-owner-resources/new-laws-regulations-small-business-owners-2025
White & Case – 2025 State Privacy Laws: What Businesses Need to Know for Compliance
https://www.whitecase.com/insight-alert/2025-state-privacy-laws-what-businesses-need-know-compliance
Nextep – State Law Updates January 2025
https://www.nextep.com/blog/state-law-updates-january-2025
Littler – Employment Law Update: New Laws for 2025
https://www.littler.com/publication-press/publication/employment-law-update-new-laws-2025
DM Accounting – How New Federal Financial Policies Will Affect Small Businesses in 2025
https://dmaccounting.com/how-will-new-federal-financial-policies-affect-your-small-business-in-2025
Wikipedia – Tax Relief for American Families and Workers Act
https://en.wikipedia.org/wiki/Tax_Relief_for_American_Families_and_Workers_Act
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