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More companies trending toward paying workers in real time

GF Default - Lawmakers want cap on interest rate for payday loans
GF Default - Lawmakers want cap on interest rate for payday loans
Updated: Oct. 22, 2018 at 11:59 AM EDT
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CLEVELAND, OH (WOIO) - The majority of American employees are used to being paid once a week or bi-weekly, but some companies are now experimenting with real-time payroll to help workers stay away from debt.

Approximately 12 million Americans rely on high-interest payday loans annually to cover expenses in between paychecks. An estimated $7 billion is spent on those payday loans and interest.

Debt can tally quickly if more than one payday loan is borrowed. Real-time payouts from employers could eliminate the need to borrow.

Walmart is one of those companies offering employees access to wages as they are earned instead of at the end of the pay period. Ride-sharing company Lyft also has a program that lets drivers get their earnings before payday.

The new practice from employers can help employees avoid the cycle of debt

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