Sullivan County Chamber of Commerce 2025 News Update:
Key Changes for Small Businesses
As we step into 2025, small business owners in Sullivan County and across New York State are facing significant regulatory and legal changes that will shape their operations throughout the year. With a business-friendly administration in Washington and key state-level updates, it’s important for businesses to stay informed and prepared. Here’s a roundup of the key developments you should be aware of as we begin the year.
- Sullivan County Budget and Economic Development
Sullivan County has approved a 2025 budget of $303 million, with a 2.5% tax levy increase to cover general cost increases and the new EMS fly car system. The budget does not propose incurring new debt. County Manager Joshua A. Potosek emphasized priorities such as debt reduction, road and bridge investment, and cost-effective government.
- State Overtime and Minimum Wage Laws- Minimum Wage | Department of Labor
Several states, including New York, are raising the threshold for overtime pay eligibility. As of January 1, 2025, upstate New York is seeing an increase to $15.50 per hour and $16.50 per hour in New York City, Long Island, and Westchester County, with regional variations for other areas. Small business owners across the state must be aware of these updates and adjust their labor costs accordingly.
- The Sunset of COVID Paid Sick Leave- COVID-19 Paid Leave: Guidance for Employers | Paid Family Leave
New York State was one of the first to adopt COVID-19-specific paid sick leave, providing employees with paid time off if they were subject to mandatory quarantine or isolation orders due to COVID-19. However, as of July 31, 2025, this specific COVID-19 paid sick leave entitlement will end.
Businesses should note that employees can continue to use other qualifying paid leave, such as New York Paid Sick Leave, for COVID-19-related reasons after the sunset of the COVID-specific leave. Employers should plan accordingly for the potential impact this will have on their employee benefits programs.
- FinCEN Registration Delays- Beneficial Ownership Information Reporting | FinCEN.gov
The Corporate Transparency Act, which requires certain small businesses to register with the Financial Crimes Enforcement Network (FinCEN), has been temporarily blocked in court. While businesses are not required to register as of now, it’s crucial for small business owners to remain updated on this regulation. Non-compliance once the law takes effect could result in fines of up to $10,000. Business owners must be ready to comply if and when the registration is implemented.
- Tax Reporting Changes for Payment Apps- IRS provides transition relief for third-party settlement organizations; Form 1099-K threshold is $5,000 for calendar year 2024 | Internal Revenue Service
The American Rescue Act has significantly lowered the threshold for reporting earnings through third-party payment apps like PayPal, Venmo, and Cash App. In 2025, businesses will need to report earnings over $5,000 from these platforms, in line with the phased transition toward the new $600 reporting threshold. Small businesses that rely on payment platforms must stay on top of these changes to ensure they are compliant when filing taxes.
- Retail Workplace Safety Law- NY State Senate Bill 2023-S8358C
In September 2024, Governor Kathy Hochul signed legislation mandating workplace violence prevention policies for certain retail employers. This law requires retail businesses to establish written violence prevention policies, provide training, and install panic buttons in the workplace.
While the written policy, notice, and training requirements will take effect on March 4, 2025, the panic button requirement won’t be mandatory until January 1, 2027. These regulations will apply to retail employers with 10 or more employees, although the panic button requirement applies only to employers with 500 retail employees nationwide.
However, some details about the scope of coverage are still unclear. The New York Department of Labor (NYDOL) has not yet issued additional guidance on the meaning of terms like “retail store” and “sells consumer commodities at retail.” We expect further clarification from the NYDOL before the March 2025 effective date, but businesses should start preparing for compliance.
- Other Regulatory Changes for 2025
- Paid Family Leave: Governor Kathy Hochul announced that the new year will bring increased workers’ compensation and Paid Family Leave benefits for workers, while also delivering savings for businesses. Effective January 1, 2025, the minimum weekly benefit for workers’ compensation and the maximum weekly benefit for Paid Family Leave will both go up, while the workers’ compensation assessment rate for employers drops. New Year, New Laws Protecting Workers: Governor Hochul Announces Increased Benefits for Employees and Lower Costs for Businesses in 2025 | Governor Kathy Hochul
- Paid Time Off for Pregnancy-Related Appointments: A new law mandates 20 hours of paid time off for pregnancy-related medical appointments, allowing expectant employees to attend necessary check-ups without financial hardship. New York State Paid Prenatal Leave
- Prohibition on PFAS in Apparel- PFAS In Apparel Law - NYSDEC
Starting January 1, 2025, New York State will prohibit the sale of new apparel containing intentionally added per- and polyfluoroalkyl substances (PFAS). Brand such as Nike, Carhartt, North Face, etc. are commonly known for their use of PFAS, used for water- and stain-resistant finishes. After January 1, 2028, a new restriction will go into effect that applies specifically to outdoor apparel for severe wet conditions with intentionally added PFAS.
- A New Business-Friendly Administration
The incoming administration in Washington is expected to bring positive changes for small business owners. With Kelly Loeffler, a former U.S. Senator from Georgia, set to lead the Small Business Administration (SBA), pending Senate confirmation, we anticipate a focus on regulatory relief and tax cuts for small businesses. While the full impact of her leadership will become clearer once confirmed, pro-business policies are expected to dominate the administration’s approach.
- Inflation and Economic Conditions
Inflation continues to be a major concern for small business owners as we enter 2025. Although inflation has slowed from its 2022 peak, it remains a wildcard. The Federal Reserve projects a slight increase to 2.5% inflation in 2025, potentially increasing costs for goods and services. The incoming administration’s actions, including proposed tax cuts and regulatory changes, will influence inflation trends and affect small businesses' bottom lines.
Small businesses should be prepared for rising operational costs, including higher wages, materials, and transportation costs. Tariffs and other trade policies may also add pressure, making it crucial to stay adaptable and plan for fluctuating expenses.
Stay Prepared and Stay Informed
The Sullivan County Chamber of Commerce is committed to helping our local businesses navigate these regulatory changes and make the most of the opportunities in 2025. As a small business owner, staying informed about economic shifts, tax updates, and evolving labor laws will be essential to your success this year.
For more information or assistance with any of the topics mentioned, please don’t hesitate to contact the Chamber. We look forward to supporting you and helping Sullivan County businesses thrive in 2025. Let’s work together to make this a successful year for our community!