New Grocery-Related Laws Take Effect Jan. 1
Grocery taxes, other rules set to change in select states
Michigan and Colorado are two states requiring retailers to carry cage-free shell eggs only after Jan. 1, affecting suppliers with more than 3,000 hens.
New year, new laws. As 2025 gets underway, the change of the calendar is ushering in regulations affecting grocers and consumers in various parts of the United States.
Below is a recap of some updates and mandates set to roll out on Jan. 1:
- In Michigan, retailers must sell eggs sourced from producers who follow cage-free production practices. The law applies to farms with more than 3,000 egg-laying hens and does not apply to liquid eggs or cooked eggs. The state requires that business owners, including grocers, obtain written confirmation from suppliers that their eggs come from a cage-free environment.
- Similar legislation is going into effect in Colorado, as producers in that state with more than 3,000 hens are required to move their birds to cage-free housing by Jan. 1. Mandates on cage-free production – typically costlier than previous practices – comes at a time when egg prices are already elevated due to episodic avian flu outbreaks.
- In California, food retailers must offer compostable bags for produce items. Plastic bags for pre-checkout use will not be allowed.
Advertisement - article continues below
Advertisement
- Grocery taxes are being rolled back in Kansas after the New Year. Shoppers there will not pay state sales tax on groceries in 2025, although city- and county-levied taxes are still on the books. Illinois passed a similar law, but that won’t go into effect for another year, on Jan. 1, 2026.
- Higher labor outlays are on deck in some parts of the country for 2025, as 21 states and 40 localities are raising their minimum wages. New York has some of the highest thresholds, with a $16.50 per hour rate in New York City, Long Island and Westchester County and $15.50 per hour in the rest of that state. California’s minimum wage will be $16.50 and Washington state’s minimum wage is set at $16.66. States with impending wage increases include Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington.
