The Arkansas General Assembly concluded its regular session on May 5, 2025. In a virtual event, NFIB State Director Katie Burns provided an overview of the legislative session’s outcomes. Burns highlighted several achievements, challenges, and future reform opportunities for small businesses.
One significant victory was the passing of HB 1204 / Act 28, which aims to restore fairness in Arkansas’ judicial system by addressing phantom damages and enhancing transparency. According to an NFIB survey, over 82% of Arkansas members supported this legislation to limit excessive lawsuit awards in personal injury cases.
Another success was SB 307 / Act 373, known as the Generating Arkansas Jobs Act of 2025. This law updates the state’s regulatory framework for energy infrastructure projects, protecting consumers from sudden rate hikes while allowing gradual increases. It is expected to boost Arkansas’ ability to attract energy-intensive industries and support regional economic growth.
Additionally, SB 560 / Act 740 focuses on strengthening the workforce by redirecting unemployment insurance funds towards job training without increasing employer costs.
Despite these successes, challenges remain. Several bills were introduced that could have increased operational difficulties for small businesses. These included proposals that might have raised workers’ compensation costs and health insurance premiums or undermined workforce partnerships.
SB 287 proposed raising attorney fee caps in workers’ compensation cases, potentially leading to more litigation and higher employer costs. HB 1930 / SB 626 suggested mandating minimum reimbursement rates for healthcare providers, possibly increasing private employer health insurance premiums by up to 30%. HB 1660 sought to block state training funds for private employers.
Although these bills did not pass this session, they may be reintroduced next year. The NFIB intends to continue opposing them.
Looking ahead, there are opportunities such as SB 289 introduced by State Sen. Jim Dotson, which seeks state sales tax relief by cutting the statewide sales tax rate slightly to reduce surplus funds collected from taxpayers. HB 1435 by State Rep. Brandon Achor proposes income tax credits for employers providing childcare services—an essential factor in addressing workforce shortages. Lastly, HB 1116 introduced by State Rep. David Ray aims to ease compliance burdens for small businesses by streamlining state income tax rules for remote and short-term workers.
Burns emphasized staying engaged with state lawmakers as advocacy plays a crucial role in securing victories and preventing harmful proposals at the Capitol in Little Rock.
