work today, get PAID tomorrow!

[DTEJD1997]

Hey all:

 

The local radio station was all abuzz with talk of "work today, get paid tomorrow!".  Evidently, a lot of legitimate employers are now offering this to their workers.

 

The radio host thought that it might be a bad idea, because it was not forcing workers to be disciplined enough to make their paycheck last 1 week or 2 weeks.

 

Turns out, workers are given a debit card, and they can access their pay as soon as 24 hours later for a small fee ($1.50 to $3).  I don't think they can get cash, they get it loaded on the card.

 

I think it is stupid for a worker to pay to get to their money....but why not?  As long as everything is spelled out in very clear terms.  Let people negotiate amongst themselves.

 

Anybody else hear/see this going on?

[matjone]

Are you sure this is an optional program?  I knew someone who had something similar going on.  I can't remember the specifics but according to them they were locked into it as long as they had that job.

[LC]

Well I mean most people already "work now get paid later" i.e. they are paid every two weeks.

 

This is just another disguised form of a payday loan.

[orthopa]

This seems to be gaining traction, especially with those who for better or worse live day to day with their finances. This is part of the new "push" program from Visa/Mastercard, VisaDirect etc. Great for Visa/shareholders as now you get money riding on the rails but to and from the person with a visa debit/credit card.

 

Convenience and immediate access should cost some money. If someone wants to wait 1 or 2 weeks for the $$$ fine. If you want it right away pay a little. I think this will take off as the lower earners are going to relish in getting paid right away as a money emergency seems to present itself very often for that group.

[DTEJD1997]

Are you sure this is an optional program?  I knew someone who had something similar going on.  I can't remember the specifics but according to them they were locked into it as long as they had that job.

I am not 100% sure this is an optional program.  I think that it is optional.

 

What I am SURE of is that you can wait the 1-2 weeks for normal payroll processing and NOT get charged any fee.

 

You are only charged a (variable fee) when you withdraw/use the money early.  The fee is less for charges, more for cash?

[DooDiligence]

The Burger King down the road from my house has had this exact sign out front for months now.

[Pelagic]

Kind of like how PayPal offers the get your money now for a small additional fee (think it's like 1%) or transfer it to your bank the conventional way where it will be available in 1-3 business days.

 

I assume the debit card loaded with their earnings is linked to an account they have access to? How would you make balance transfers into say a savings account or to pay for larger items?

 

Could also be a way to attract new employees who really need a job to pay expenses but can't wait the two weeks until their first paycheck.

[Tim Eriksen]

“You shall not oppress a hired worker who is poor and needy, whether he is one of your brothers or one of the sojourners who are in your land within your towns.  You shall give him his wages on the same day, before the sun sets (for he is poor and counts on it), lest he cry against you to the Lord, and you be guilty of sin." - Deuteronomy 24:14,15

 

Should there be fees for the worker to access what they are due?  I don't think so. 

Why should the laborer have to provide what is effectively an interest free loan to the employer.

I am generally on the conservative end of the spectrum, but that doesn't mean employers should take advantage of workers.  It seems to me eventually technology will make daily pay or "advances" easier, and government will compel it by law.  If men were angels government wouldn't be necessary.  The truth is, men (and women) aren't, therefore if employers won't do the right thing voluntarily it must be compelled.  Fair pay (minimum wage) and timely pay.

 

I would love to see the whole payday loan industry be put to death.  It is not a service.  It is abusive, sick and shameful. 

[SHDL]

I have the feeling that these employers will sooner or later discover that they are better off offering their workers a compensation plan where they can “earn an extra few dollars” if they opt to wait a week or two before receiving their paychecks.  Framing matters.