Most lawmakers across the U.S. have adjourned until the new year, but some of their work is about to be felt in a series of new laws and regulations that take effect on January 1st.
These new rules affect many areas of life, from derivative management to marijuana to paid sick leave – here is an example of changes that will affect the workplace, business and financial markets in 2021.
Marijuana becomes legal in New Jersey and Montana
Five state marijuana initiatives were implemented in November, with recreational weeds legalized in New Jersey and Montana beginning on January 1st. Marijuana will soon be completely legal to use in Montana, but not yet legal to sell commercially until 2022.
New Jersey, however, may find itself in a legal gray area, as lawmakers in the state are still negotiating legislation designed to provide the constitutional amendment that legalizes legal marijuana.
“There are some important, I would say, technical but important things that we are trying to eradicate,” New Jersey Gov. Phil Murphy told a local television station this week.
Voters in Arizona, Mississippi and South Dakota also approved legal weeds in November. Arizona recreational marijuana legislation went into effect as early as November. South Dakota has voted to legalize simultaneous recreational and medical marijuana, but the state governor has filed a lawsuit to stop the measure. In turn, Mississippi citizens only voted to legalize medical marijuana, leaving recreational use illegal there.
It turns out that the changes could help the U.S. marijuana sector grow with additional revenue of $ 9 billion between 2022 and 2025, according to one industry survey.
Changes in paid leave provisions
Paid leave at work is another area that could see changes – both up and down – in the new year.
During the initial response to the pandemic, the Families First Coronavirus Response Act expanded the Family and Medical Leave Act with new payment options for workers of some businesses. However, the terms expire at the end of the year and will not be extended with the latest stimulus agreement.
As it expires, certain states have announced a new protection against paid leave. In New York, Governor Andrew M. Cuomo recently announced that New Yorkers can begin new sick leave benefits on January 1, 2021, giving workers one hour of paid sick leave for every 30 hours they work.
“Now, as we continue to strike back at COVID and build a stronger New York, we are extending this fundamental right to all New Yorkers,” Cuomo said in a statement.
In addition, Colorado approved a voting initiative in November to create a paid family and medical leave insurance program in the state. The program will set up a government – funded program to provide twelve weeks of free compensation, but not until 2024.
20 states increase their minimum wage
Minimum wage workers in 20 U.S. states will receive increases at the beginning of the new year. Four more states, plus Washington, DC, will raise their minimum wages later in 2021.
Florida workers will get one of the biggest increases after voters overwhelmingly accepted a vote in November to gradually raise the minimum wage to $ 15 by 2026.
The other states had increasing wage increases. Florida joins a number of other states – California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey and New York – all of which are gradually raising their minimum wage to $ 15 in the coming year.
Some groups have also long opposed the minimum wage increase, arguing that it would cost jobs.
Others disagree with this, believing that increased wages will help give more purchasing power to more people, which will ultimately help everyone. Florida-based Lakewood Organic Juice CEO Scott Fuhrman joined Yahoo Finance earlier this week, saying: ‘I can only sell that much juice at 1%, so let’s try to grow the middle class , and one way to do that is by raising the minimum wage. ‘
New Derivative Management Laws
Several states are enacting derivative driving laws from 2021, including a Virginia measure that takes effect Jan. 1 that makes it illegal to use a cell phone for whatever reason while driving.
“Deductible governance is a serious problem and we all need to work together,” Gov. Ralph Northam was quoted as saying during a news conference emphasizing the law earlier this month.
Arizona also has a derivative driving law in place that makes it illegal to hold or support a device with your body while driving. California has several new traffic laws coming up for 2021, including increased fines for using a cell phone while driving. ‘
A deadline for the ‘Volcker rule’
In October 2019, five federal financial regulatory agencies announced ‘final revisions’ to simplify compliance with the ‘Volcker rule’. “
The rule, named after the late chairman of the Federal Reserve, Paul Volcker, was intended to limit how much banking entities can play with their clients’ money, and was at the heart of the Dodd-Frank financial regulatory framework after the crisis.
January 1 is the deadline for banks to comply with these amendments. Businesses that do not have significant trading activities will now be easier off with simplified compliance requirements.
The opposite is true for businesses with significant trading activities, as they will now have stricter compliance requirements.
Ben Werschkul is a writer and producer of Yahoo Finance in Washington, DC.
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