It’s Time for Companies to Pay Employees On-Demand
Many Americans – regardless of income level, employment type, race, gender, age, or geography – are living paycheck to paycheck.
Currently, the overwhelming majority of employers pay their employees in arrears. This means that employers hold on to employees’ earned wages for up to two weeks, and during this period, the employees are effectively financing their employers. The employees oscillate between being cash rich on payday and cash poor while waiting for the next paycheck. According to researchers at Carnegie Mellon University, “there is a sharp increase in spending on payday, which reaches its peak at either the payday itself or within the following two days, then slowly dies down in the subsequent couple of days.”
This can leave little to cover expenses for the remaining days. In fact, nearly one in three workers runs out of money before –even among those earning over $100,000.
