State legislatures in 41 states wrapped up their 2025 legislative session this summer. Before adjourning, lawmakers considered various measures impacting small businesses ranging from paid leave to tort reform, unemployment insurance benefits, and swipe fees.

• Taxes –State lawmakers were successful in passing tax relief measures in several states this year, including Oklahoma, Kentucky, Ohio, and Idaho. Oklahoma’s measure reduces the income tax from 4.75% to 4.5%, while income taxes will be lowered from 4% to 3.5% in Kentucky and from 5.7% to 5.3% in Idaho. In a major victory for small businesses in Ohio, lawmakers passed a bill transitioning to a flat income tax rate of 2.7% next year. In addition to income tax relief measures, the Florida legislature passed a proposal to eliminate the commercial lease tax in the state. In Texas, the tangible personal property tax exemption will be increased from $2,500 to $125,000, providing much-needed property tax relief for small businesses.

• Mandated Paid Leave – This year, to ease the burden on small businesses, lawmakers in Nebraska passed a measure amending the state’s paid leave law to exempt small businesses. In Missouri, lawmakers passed a proposal repealing the state’s paid leave program. Meanwhile in Maryland, the legislature approved a proposal that would delay the implementation of the state’s paid leave program by 18 months. Measures establishing paid leave programs were successfully defeated in several states earlier this session.

• Minimum Wage – While proposals raising the minimum wage were defeated in several states, lawmakers in Rhode Island were successful in approving a measure raising the minimum wage rate from $15 per hour to $17 by 2027. In Nebraska, lawmakers considered a proposal to remove the annual cost-of-living adjustment and create lower minimum wage rates for youth and employees in training. The legislature is expected to resume consideration of the bill next year.

• Unemployment Insurance (UI) Benefits – Over the past two months, Oregon, Washington, and Hawaii passed measures expanding UI benefits to striking workers. Such proposals have already been enacted in New York and New Jersey and present challenges for small businesses as expansion of UI benefits threatens to increase taxes on employers. In a major victory for small businesses, Connecticut Governor vetoed a measure expanding UI benefits.

• Extreme Temperature Standards – This year, more than ten states considered measures establishing extreme temperature standards to prevent heat and cold-related illnesses in the workplace. Such proposals require employers to create and maintain temperature-related illness prevention plans, provide training on heat illness injuries, and monitor workplace temperatures. Proposals were defeated in Texas, Arizona, Connecticut, Illinois, New York and Vermont.

• Bans on Employer-Sponsored Meetings – A growing number of states have considered proposals prohibiting employers from holding employer-sponsored meetings to discuss unionization. Such proposals were considered in several states including Maryland, Delaware, Kentucky, and Pennsylvania. Measures were defeated in New Mexico, Delaware, Kentucky and passed in New Jersey, and Rhode Island. Similar laws in Minnesota, California, Connecticut, and Illinois have faced legal challenges.

• Tort Reform –Lawmakers in Georgia, South Carolina and Louisiana passed significant tort reform proposals this year to rein in lawsuit abuse. In Georgia, the governor signed a bill addressing phantom damages, premises liability and third-party litigation financing.In South Carolina, legislation has been signed into law to curb lawsuit abuse impacting small businesses.Additionally, the Louisiana legislature passed six measures to address frivolous litigation and rein in insurance costs. The bills were signed into law last month.

• Credit Card Swipe Fees – Legislators in at least 11 states considered measures to remove the sales tax from the calculation of swipe fees to alleviate costs associated with credit card transactions. Swipe fees range between 2% and 4%, and merchants pay on each credit or debit card transaction. Among the states that considered swipe fees proposals include Colorado, Maryland, Indiana, Idaho, Massachusetts, Kansas, and Arizona. While most of those states have already adjourned, lawmakers are expected to resume consideration of the measures next year.