New and Pending Laws That Can Impact Small Businesses

Running a small business is already a high-stakes juggling act. Between managing staff, keeping customers happy, staying on top of inventory, and trying to maintain a profit, there’s hardly a spare minute to track what’s going on in the legal world. But here’s the thing—what you don’t know about new and pending laws can hurt you. And in 2025, there are more than a few regulatory curveballs headed toward small business owners.

Whether you’re a local retailer, a service provider, or an online brand, understanding how these laws can impact your business is not just helpful—it’s essential. The legal landscape is shifting in ways that affect how we hire, pay, market, and protect customer data. Some of these regulations are already rolling out, while others are in the pipeline and gaining traction. Either way, now’s the time to get familiar.

1. Federal Minimum Wage Hike Discussions Are Heating Up

One of the most closely watched issues for small businesses is the push to raise the federal minimum wage. While the national minimum wage has been stagnant at $7.25 since 2009, several states have implemented their own increases, and more are poised to follow.

Bills proposing a $15 federal minimum wage have been reintroduced in Congress. While not yet law, the momentum is building. If passed, businesses will need to adjust not only their payrolls but potentially their pricing models and staffing strategies. Waiting until it’s official might leave you scrambling.

2. Pay Transparency Laws Are Gaining Steam

The movement toward pay equity isn’t slowing down—and it’s transforming the way small businesses post job openings. States like California, Colorado, and New York have already implemented laws requiring employers to include salary ranges in job listings. Pending legislation in other states suggests this trend is likely to expand nationally.

Why does it matter? If you’re recruiting in one of these states—or from a remote talent pool—you may be legally required to disclose compensation. Failure to comply could result in fines, reputational damage, and limited access to talent.

3. Data Privacy and Cybersecurity Compliance Is Expanding

Data privacy isn’t just a big business issue anymore. With consumers increasingly aware of how their personal data is collected and stored, lawmakers are responding with stricter regulations. The California Privacy Rights Act (CPRA), which went into effect in 2023, has inspired similar laws in states like Virginia, Connecticut, and Utah.

More states are drafting data privacy laws that will impact even the smallest companies, especially if you collect customer emails, track user behavior, or store sensitive personal information. Investing in secure systems, transparent privacy policies, and compliant data practices is no longer optional—it’s table stakes.

4. Gig Economy Worker Reclassification Is on the Radar

The Department of Labor has proposed new rules that would make it harder for businesses to classify workers as independent contractors. This is especially significant for small businesses that rely on freelancers, consultants, or gig workers.

The proposed rule would use a “totality-of-the-circumstances” test to determine worker classification, focusing on economic dependence and control. If passed, businesses could be required to offer benefits, pay unemployment taxes, and comply with minimum wage laws for more of their workforce.

5. New Tax Reporting Requirements Are in Effect

Let’s talk about Form 1099-K. As of 2024, the IRS lowered the reporting threshold for third-party payment platforms (like PayPal, Venmo, Square) from $20,000 and 200 transactions to just $600 total in annual income. While there’s been pushback, the law is moving forward, and small business owners must be prepared.

This means more transactions will be reported to the IRS—whether or not you previously considered them taxable income. It’s crucial to keep clean records, report income accurately, and consult with a tax professional to avoid surprises.

6. Employee Leave Laws Are Expanding

States are increasingly mandating paid family and medical leave, with programs already active in states like Washington, Massachusetts, and Oregon. These laws require employers to offer time off (often paid through a state-run fund) for events like childbirth, serious illness, or caregiving.

New pending legislation at the federal level could create a national framework for paid leave. Small businesses should be prepared for both the cost of participation and the operational impact of managing extended absences.

7. Environmental Regulations May Impact Packaging and Supply Chains

Sustainability isn’t just a buzzword—it’s becoming a regulatory requirement. States like California and New Jersey have introduced laws limiting the use of single-use plastics, while others are cracking down on emissions and requiring transparency in supply chain sourcing.

Pending federal proposals, such as the Break Free From Plastic Pollution Act, could impose new packaging standards and reporting responsibilities on businesses of all sizes. If your business relies on packaging, shipping, or manufacturing, it’s time to assess your environmental footprint and start making adjustments.

8. Artificial Intelligence Use Is Under Scrutiny

If you’ve started using AI for hiring, marketing, or customer service—great. But new regulations may soon affect how you use that technology. Proposed laws in states like Illinois and New York aim to regulate the use of AI in employment decisions, requiring transparency, human oversight, and anti-bias measures.

In 2025, small businesses embracing AI will need to ensure that their tools meet emerging ethical and legal standards. Ignorance won’t be an excuse if a candidate claims your hiring algorithm was discriminatory.

9. Accessibility Laws Are Being Strengthened

Website accessibility lawsuits have been steadily increasing, with more than 4,000 cases filed annually under the Americans with Disabilities Act (ADA). Now, the DOJ is pushing for clear federal website accessibility standards, which could be finalized in the next year or two.

If your website isn’t accessible to users with disabilities—think screen reader compatibility, keyboard navigation, and alt text—you could be at risk. Making your digital presence inclusive now could save you from legal trouble later and broaden your customer base.

10. Remote Work Tax and Labor Laws Are Catching Up

As remote and hybrid work models persist, states are re-evaluating how they tax remote workers and apply labor laws. If you employ remote staff in other states, you may be subject to that state’s tax requirements, labor laws, and registration rules.

Pending legislation aims to streamline and clarify these obligations, but in the meantime, it’s essential to stay informed and compliant. Hiring across state lines isn’t just a talent strategy—it’s a legal responsibility.

11. Anti-Monopoly and Competition Laws Are Changing the Landscape

The Federal Trade Commission (FTC) and Department of Justice have introduced stricter antitrust guidelines aimed at leveling the playing field for smaller businesses. These changes could influence everything from supplier contracts to digital ad space monopolies.

While this might seem like a big-business issue, it’s a chance for small businesses to advocate for fairer marketplaces—especially in industries dominated by a few large players. It’s one to watch closely.

12. Health Care Mandates May Impact Small Employers

Although small businesses under 50 employees are generally exempt from the Affordable Care Act’s employer mandate, several states are crafting their own requirements around employer-provided coverage or subsidies. Additionally, changes to health reimbursement arrangements (HRAs) could affect how businesses offer support.

Pending federal proposals may further expand tax credits or impose mandates, depending on the political climate. Staying updated on these laws helps you prepare for cost changes and better support your employees.

13. Social Media and Marketing Compliance Is Tightening

Small business marketing is also under a regulatory microscope. The FTC is cracking down on deceptive practices—including fake reviews, undisclosed influencer partnerships, and misleading claims. With new guidance released in 2024, violations could result in stiff penalties, even for small shops.

If you’re promoting products or services on social media, now’s the time to ensure all your marketing aligns with the latest disclosure rules. Clear is better than clever when it comes to compliance.

14. Commercial Lease and Eviction Protections Are Changing

The pandemic led to temporary protections for commercial tenants, but in 2025, some cities are moving to make those protections permanent or easier to re-activate in times of crisis. This includes extended notice periods and mediation requirements before evictions.

For small business owners leasing space, understanding your rights and responsibilities is crucial. Local ordinances can differ dramatically, and staying proactive can help you avoid costly legal disputes.

15. Corporate Transparency Requirements Are Expanding

Under the Corporate Transparency Act (CTA), which came into effect in 2024, many small businesses are now required to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). The goal? Combat money laundering and shell companies.

But compliance isn’t optional. Failure to file can result in daily fines and criminal penalties. If your business has fewer than 20 employees and under $5 million in revenue, chances are this law applies to you.

Stay Informed, Stay Compliant, Stay Ahead

Change is a constant in business—and the legal environment is no exception. For small business owners, keeping up with new and pending laws can feel overwhelming. But knowledge is power. By staying ahead of these shifts, you protect your business, your people, and your future.

Now is the time to assess your current practices, seek legal guidance where needed, and build flexibility into your operations. The small businesses that thrive in 2025 will be the ones that not only innovate—but also navigate the rules with intention and care.