What to expect for business in 2021

Yahoo Finance’s Akiko Fujita and Zack Guzman discuss the top things to pay attention to going into the new year, from social media policies, diversity, and new, minimum wages.

Video Transcript

ZACK GUZMAN: And, Akiko, I mean, we don't necessarily want to end the show fully on a look back here. We're also looking forward to some changes that are expected to come down the pike in 2021, and I know you've been looking through a few tied to board diversity requirements as well as other disclosures that are kind of necessary here in the new year.

AKIKO FUJITA: Yeah, but let's kick things off with what we're seeing on a nationwide level here, which is the minimum wage increasing. About half of the US states raising the minimum wage. And I think this is kind of an interesting discussion because, remember, if you look back to a few years ago, the discussion has been that raising the minimum wage hurts smaller businesses. At least that's what the critics have argued.

But you do get the sense that the conversation has really shifted this year, largely because of the focus on these essential hourly workers who have continued to work throughout the pandemic taking those risks that they do despite the pay that they get. And so the next phase here as we look ahead to 2021 is certainly going to be what President-elect Joe Biden has said is a priority, which is to raise the federal minimum wage to $15 an hour. You know, we'll see if that works, but it also feels like we've seen a number of companies that have been stepping up to try and raise the wages as well as there's continued focus on the hourly workers who have continued to operate during the pandemic.

ZACK GUZMAN: Yeah, the thing that gets lost in that conversation too for me is is kind of the point that a lot of these tipped-wage earners, when you think about servers as well, you know, can get paid below the minimum wage levels that we're seeing, even though we are seeing states increase them in 2021-- everything from, you know, $8.75 in Nevada and Montana to $14 or $15-- $13 or $14 in California depending on how many workers are employed at those businesses. It's kind of a moot point if you're a server and you're going to see minor changes there, but if you could get-- and Joe Biden's talked about changing that tipped-wage minimum-- that would be a big change for servers across the country if that's something that can actually get done.

AKIKO FUJITA: Yeah, and speaking of companies that have sort of committed to raising wages too, we've had BofA as well as Amazon saying they're going to be paying workers more than $15 an hour. Starbucks committing to raising wages for their baristas by 10% over the next three years. So a lot of changes coming on that front.

You alluded to some of the new laws here in California that I'm watching closely, a number that could really affect a lot of these tech companies that we cover here. California require companies based there-- based here to have at least one board member-- board director that is a racial or sexual minority by the end of the year. Remember, California was the first one to come forward and say there need to be at least one woman on the board. This is kind of an extension of that too. So we will, of course, continue to follow that, among a number of new laws.

That does it for us here in 2020. Zack, it's been a great cohosting with you. Of course, we will be back here on Monday. Wishing you all a very happy New Year. See you back here next week.