Research suggests that earned wage access is becoming more popular in how companies pay their employees. EWA is a revolutionary concept where employees can access their earned wages as early as the same day. Studies have shown that 60% of workers want on-demand pay, which increases a business’s ability to attract, retain and motivate employees. Simply having the option to request earned wages provides a higher sense of security for workers, even if they don’t utilize it. Earned wage access is an awesome way to stay ahead of the competition but there are some compliance items to think about. Here are 4 best practices when considering this benefit.
Ensure you have written policies that are compliant with state and federal laws including privacy and Paycard laws.
Get the consent of employees when sharing information to providers.
Consider benefits, implications and withholdings.
Research EWA providers and partner with experienced companies.
Have an attorney review for compliance risk