Overview of NFIB’s Legislative Priorities for 2025 in Minnesota

The National Federation of Independent Business (NFIB), recognized as the foremost advocate for small businesses across the nation, has recently unveiled its legislative priorities for the state of Minnesota in 2025. This organization plays a pivotal role in representing the interests of small business owners, ensuring their voices are heard in the political arena, and advocating for policies that foster growth and sustainability.

Pressures Facing Minnesota’s Small Businesses

As articulated by Jon Boesche, the NFIB Minnesota State Director, “Minnesota’s Main Street is under a tremendous amount of pressure due to burdensome mandates and increased costs.” He emphasizes the critical importance of maintaining a prosperous and competitive economic environment in Minnesota. To achieve this, he asserts that lawmakers must decisively oppose any new employment mandates, refrain from increasing taxes on small businesses, and avoid enacting regulations that unintentionally escalate costs or seek to micromanage the relationship between employers and employees.

Key Legislative Goals of NFIB for Minnesota in 2025

NFIB Minnesota has prioritized several key legislative initiatives that aim to alleviate the challenges faced by small businesses in the state:

Pursuing Reforms to the Minnesota Paid Family & Medical Leave Program

One of the primary concerns for NFIB is the Minnesota Paid Family and Medical Leave (PFML) program, which was established amid considerable debate. The organization has maintained a strong opposition to this state-run program due to the significant financial strain it imposes on small employers. In response, NFIB is committed to exploring every viable opportunity to reform the PFML program in the upcoming legislative session.

Providing Small Businesses with Tax Relief

With Minnesota currently holding the record for the highest corporate tax rate at 9.8 percent and one of the top individual income tax rates at 9.85 percent nationally, NFIB recognizes the urgent need for tax relief. The federation will dedicate its efforts to advocating for a reduction in both the individual income tax rate and the corporate tax rate. Additionally, NFIB supports legislation that would allow businesses collecting sales tax to retain a portion of the tax collected as a fee for their role as the State’s collection agents.

Opposing the Adoption of an ABC Test for Independent Contractors

Another crucial priority for NFIB is to prevent the introduction of an “ABC” test similar to California’s for classifying workers as independent contractors or employees. Given the current worker shortage in Minnesota, independent contractors are vital to fulfilling consumer demand for products and services from small businesses. Implementing such a test could severely hinder entrepreneurship by limiting the options available for individuals who wish to operate as independent contractors.

Promoting Affordable and Flexible Healthcare Options

As the costs of healthcare and insurance premiums rise steeply, many small businesses find it increasingly challenging to offer these essential benefits. To promote competitiveness, NFIB advocates for stabilizing the health insurance market in Minnesota. The organization strongly supports fully funding Minnesota’s individual market reinsurance program through 2027 without imposing mandates or regulations that would curtail options or shift costs unfairly onto small employers.

Pursuing Reforms to Minnesota’s Earned Sick and Safe Time Mandate

Despite strongly opposing the initial Earned Sick and Safe Time (ESST) mandate imposed on employers, NFIB acknowledges the need for pragmatic reforms. The organization is championing sensible measures aimed at reducing the associated costs and making compliance more feasible for small businesses throughout the state.

Opposing Implementation of a Low Carbon Fuel Standard

Lastly, NFIB stands firmly against introducing a Low Carbon Fuel Standard (LCFS) in Minnesota, describing it as a hidden tax that would adversely affect the cost of doing business. With the escalating emission reduction targets of the LCFS, the expectation is that prices for gas and diesel will continue to climb, placing further financial strain on small businesses. NFIB intends to actively challenge any legislative efforts aimed at enacting an LCFS in Minnesota.

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