Opinion: Black Workers Depend on Same-Day Pay. Why is Gov’t Trying to Restrict It?

Jay King | Special to California Black Media PartnersJay King, President and CEO of the California Black Chamber Of Commerce OPINION (CBM) – It’s no secret that too many Americans are living paycheck to paycheck. What appears to be a secret is that an industrythat is casting lifelines to those in need is being blocked by state and federal regulators.The industry in question is Earned Wage Access (EWA). EWA is an innovative fintech solution that empowers workers and helps them pay bills on time by accessing wages they’ve already earned. A 2021 study found that EWA services often prevent consumers from missing bill payments and slipping further into debt.Despite the many benefits and the fact that businesses all across the country, including Paychex, now offer EWA to employees, the Consumer Financial Protection Bureau (CFPB) recently issued guidance that could effectively wipe out this tool and, in the process, let struggling families, already in jeopardy, drown even deeper in debt.The numbers tell the story. According to a recent study, 66% of Americans report living paycheck to paycheck, while 40% report being unable to afford a $400 emergency expense. They face hardship paying bills, covering financial emergencies, and otherwise making ends meet....