Companies offering same-day pay option to help find workers
Posted October 27, 2020 5:08 p.m. EDT
Updated October 27, 2020 6:27 p.m. EDT
For many workers, the phrase "living paycheck to paycheck" has become reality during the coronavirus pandemic.
Some businesses, including fast-food restaurants and retail stores, are now offering employees next-day or even same-day pay.
A sign at the Wendy's on Wake Forest Road, in Raleigh, states "Now Hiring -- Same Day Pay."
For JoAnn Taylor, who works at another fast-food restaurant chain, same-day pay would be a godsend.
"It's hard to pay bills because I had to ask my manager to pay my cellphone bill because I had to wait until we got paid," she said.
Employees can use apps allowing them to receive advances on money they have already worked for without having to wait until pay day.
DailyPay is one firm providing this service to companies nationwide.
"We integrate our technology into a company's time management and payroll system," said Jeanniey Walden, chief marketing officer for DailyPay.
Employees pay a $2.99 fee to get paid for that day's shift.
Walden said they're not using it like an ATM.
"It's not in our best interest for people to overuse it at all," she added. "What we're seeing historically is people truly use it for an unexpected or unplanned expense."
Same-day pay can help get workers through the door.
"We've had reports of a lot of businesses reopening and they're not able to find workers," said North Carolina State University economist Mike Walden.
Walden said that, when people have a lot on their plate, more frequent pay makes the difference.
"I think this is part of an effort to help particularly low-income workers to help manage their finances better," he said.
Several companies have started up in recent years to provide the perk to employees. Some of them allow only 50 % of their pay each day. Others have the employer pay the cost and don't charge any fees to the employee.