Celebrating New Leaders Taking us to New Heights
INDEPENDENCE, Ohio – December 19, 2019 – Koinonia, a leading provider of life-changing services to people with intellectual and developmental disabilities (IDD), has unveiled a new initiative aimed at helping employees gain greater financial flexibility. DailyPay, the leading provider of the daily pay benefit — a benefit offered through employers that allows employees to receive instant access to their earned pay, gives employees the flexibility to make secure, instant transfers of earned but unpaid pay any day of the year, without having to wait until their next scheduled payday.
The partnership will empower Koinonia’s workforce with the financial freedom to access their pay whenever they need money, not just on payday. Direct Support Professionals (DSPs) and other staff members will have the ability to pick up an extra shift and get paid for it the next day, through DailyPay.
“Koinonia’s employees are, hands down, our most important resource and asset and, as employers, we have a duty to care for them,” Diane Beastrom, President & CEO, said. “This benefit encourages people to come to work each and every day feeling engaged because they have more financial flexibility and a safeguard against unexpected expenses.”
With DailyPay, employees may transfer their accrued but unpaid net pay to any bank account, pay card, or debit card prior to their next payday. Koinonia employees can also track their accumulated earnings during each pay period using the available balance feature.
“Any time that we can help employees to stress less about their finances helps our partners in their mission to provide optimal care to those whom they serve,” Jason Lee, CEO of DailyPay, said. “Financial stress has a trickle-down effect, and so does financial security. When employees feel secure about being able to meet their day-to-day living expenses, they are in a position to be more present and more productive in their jobs. And that makes everyone happy — the employees, our partners and our partners’ clients.”
There is no charge for employees to sign up for DailyPay. Similar to an ATM, employees pay a small fee of $1.99 per transaction to receive their funds the next day or $2.99 per transaction to receive their funds instantly.
Fast-pay options are a growing trend in payroll as employers promote the service as a way to reduce turnover and boost morale. DailyPay incentivizes Koinonia employees to work scheduled or additional shifts to increase their pay. The benefit is one of many innovative tools the agency is initiating to engage with the very best candidates who in turn, enable people who have IDD to live their best lives in our community.
DailyPay, the leading provider of the daily pay benefit — a benefit offered through employers that allows employees to receive instant access to their earned pay, works across a wide range of industries, including quick service restaurants, hospitality, retail, healthcare and other services. One in six Americans now has access to DailyPay through our trusted payroll service partners, including ADP, Paycor, Alight, SmartLinx, Netspend and other HR and payroll technology providers, who offer the daily pay product to their customers. With DailyPay, employees can pay bills on time and avoid late fees, helping them to reach their financial goals. Companies have reported that DailyPay increases employee engagement and retention and helps to support recruitment. DailyPay is backed by leading venture capital firms and world-class strategic investors. The company is headquartered in New York.BOOK A DEMO
Kwik Chek enhances employee experience with innovative on-demand pay
solution that allows access to earnings before payday.
NEW YORK (Dec. 4 2019) – DailyPay, the leading provider of the daily pay benefit offered through employers that allows employees to receive instant access to their earned pay, today announced a partnership with Kwik Chek Food Stores. Through this partnership, Kwik Chek has made DailyPay available to more than 600 employees throughout Texas and Oklahoma, who now have the flexibility to make secure, instant transfers of earned but unpaid pay 24/7/365.
“Kwik Chek immediately saw the benefit of helping their employees and producing positive retention results for the company,” said Jason Lee, CEO, DailyPay. “As a regional brand that competes with larger national brands, they wanted to offer a benefit that turned them into a preferred employer in the hiring market. After launching DailyPay, Kwik Chek saw a very impressive adoption rate, with 42% of their employees opting into this new benefit.”
“Offering DailyPay is another way for us to show existing and prospective employees how much their hard work means to us,” said Rick Tellez, Chief Financial Officer, Kwik Chek. “We want to show our workforce that we understand how hard it can be to wait for the next paycheck, especially when they experience an unforeseen expense or need to pay a bill on time and don’t have the necessary funds available. Enabling them to access their earnings before payday helps them to be more productive at work because they are less stressed financially.”
With DailyPay, employees can transfer their accrued but unpaid pay to any bank account, pay card or debit card, prior to their next payday. Employees can also track their accumulated earnings during each pay period using the balance feature. In this way, DailyPay provides Kwik Chek employees with a safeguard against unexpected expenses, and an incentive to work scheduled or even additional shifts to increase their available balance.
“By adding earned wage access to their benefits package, Kwik Chek has set itself apart from the competition in a very impactful way,” Lee said. “This benefit helps increase the value of employee pay without increasing the amount of their pay; it helps employees pay their bills on time and the company stays within budget. It’s a victory for all involved.”
DailyPay is the only instant pay technology that is fully compliant in all 50 states and can be implemented at no cost to businesses that choose to offer it.
To learn more about offering a daily pay benefit to your employees, schedule a time to talk about how DailyPay can help your business.
DailyPay, the leading provider of the daily pay benefit — a benefit offered through employers that allows employees to receive instant access to their earned pay, works across a wide range of industries, including quick service restaurants, hospitality, retail, healthcare and other services. One in six Americans now has access to DailyPay through our trusted payroll service partners, including ADP, Paycor, Alight, SmartLinx, Netspend and other HR and payroll technology providers, who offer the daily pay product to their customers. With DailyPay, employees can pay bills on time and avoid late fees, helping them to reach their financial goals. Companies have reported that DailyPay increases employee engagement and retention and helps to support recruitment. DailyPay is backed by leading venture capital firms and world-class strategic investors. The company is headquartered in New York. For more information about DailyPay, visit dailypay.com or follow @DailyPay on Twitter.
About Kwik Chek Food Stores
Kwik Chek Food Stores is headquartered in Spicewood, Texas and is a family of locally owned, customer service-oriented convenience stores, grocery stores and quick food operations. With more than 45 locations throughout Texas and Oklahoma, Kwik Chek serves more than 4,000 items, including fresh-made food, cold drinks and grab-and-go snacks. With our motto, “Leave ‘Em Better,” we are continually looking for ways to give our guests the highest quality of service and products. Please visit www.kwikchekstores.com for more information.
Jacob Frey, Mayor of Minneapolis, Shauen Pearce, Economic Development and Inclusion Policy Director to Mayor Jacob Frey,
Anders Victor, Senior Manager, Business Investment, Greater MSP, and Daily Pay Staffers
Earned pay access is certainly gaining momentum in the workplace. It’s good for employees who may need to access their earnings prior to payday for an emergency or to pay a bill on time. And it’s good for employers because it’s been proven to reduce turnover by up to 72% and it helps to increase recruitment, engagement and retention.
What is Earned Wage Access? Earned wage access (EWA) means giving access to wages earned—in this case, before they would typically be paid out on payday. it is a way to remove the gap between the time an employee earns his or her money and the time he or she can access it. But all earned pay access providers are not all the same when it comes to compliance, a key concern of payroll teams. In fact, quite a few are wolves in sheep’s clothing — with practices that are similar to payday lenders
If you’re considering offering a daily pay benefit, you need to do your due diligence when it comes to choosing an earned wage access provider who adheres to rigorous compliance standards. Here are a few of the things you need to look for:
Learn More About Compliant Earned Wage Access
Does the earned pay access provider debit employee accounts to recoup any early pay transfers in any state?
Some earned pay access providers debit the employee’s bank account to be paid back. This practice has high regulatory and reputational risk. Recent regulatory inquiries in New York, Connecticut, Illinois, Maryland, New Jersey, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota and Texas indicate that regulators view debiting an employee’s account as a primary indicator that the transaction is a loan. Companies should be very careful not to include debiting as a means of payback for the vendor.
Does the earned pay access provider engage in pay discounting?
If the provider deducts the full amount of any early pay transfers from the employee’s paycheck, the provider could be in violation of the laws in 13 states where pay discounting is illegal. If you are not in one of those states, you may still wish to check with your management team to ensure there are no future plans to expand into those states. Your safest bet? Choose a vendor who is 100% compliant with pay and hour laws in all 50 states in one consistent structure.
Will the employee’s pay stub reflect 100% of pay earned during the pay period?
When rolling out a daily pay benefit, it’s critical that your company chooses a provider that allows you to continue to fulfill your obligation to report properly all of each employee’s pay.
Having a record (the pay stub) of an employee’s full net pay being remitted is a critical compliance requirement and an affirmative defense for your company if litigation arises for any reason concerning an employee’s pay. Without such a record, you will be at risk of being unable to prove that you remitted full pay to the employee in a court of law.
The Fair Labor Standards Act requires that employers keep accurate records of employees’ pay and hours worked. Although certain states may not require employer-issued pay stubs, employees have a right to request their payroll records at any time.
Printed pay stubs are mandatory in the following states: Arizona, Colorado, Connecticut, Hawaii, Iowa, Maine, Minnesota, New Mexico, North Carolina, Texas and Vermont. Employers may be able to supply electronic pay stubs as long as:
- Employees can electronically access their pay stubs
- Employees have a secure and unique login
- Employees can print their pay stubs
Could there ever be an accusation of pay theft?
In order for an employer to avoid an accusation of pay theft, the pay stub must be accurate. Pay theft litigation can arise in a number of situations, including non-payment of overtime, not giving employees their last paycheck after they leave a job, and not paying for all the hours worked.
Here are some examples involving pay theft litigation:
- Chipotle (2016): 10,000 employees brought a class-action lawsuit alleging they were told to work hours “off the clock.” Nearly 3,000 workers were removed from the suit since they had signed class-action waivers upon employment, but the litigation is still ongoing for the other employees.
- Staples (2010): settled a class-action lawsuit “related to allegations that the company had not paid its assistant store managers overtime to which they were entitled.”
- Walmart (2008, 2012, 2014-2015, 2016): Walmart has had to pay several pay theft penalties over the years, including settling $352M in 63 pay violation lawsuits in 2008, $5M in back pay in 2012, $188M in 2014-15 for Walmart and Sam’s Club employees in PA, and $54M for failing to pay a certified class of truckers for time spent on work-related, on-duty tasks.
Some states have additional requirements to prevent pay theft. For example:
- Under the New York Wage Theft Prevention Act (WTPA) and the Hospitality Wage Order, pay stubs must contain the following information: hours the employee worked – both regular and overtime, rates of pay, any allowances taken against pay (for example, tip credit, meal allowance, etc.), dates of work covered by the payment of income, name of employee, name of employer, address and phone number of employer, gross pay, deductions and net pay.
- It is also imperative that employers keep copies of each employee’s pay stub for at least six years. The pay stub copy can be paper or electronic, but it must be compliant and accessible. Employers assume their payroll companies have and maintain these records, but we often find that the payroll company does not maintain the copies.
- Minnesota enacted changes to its Wage Theft Law, effective on July 1, 2019, that affect earnings statements. Earnings statements provided at the end of each pay period must include all previously required information, plus:
- The basis of pay, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission or other method and the specific application of any additional rates
- Allowances for meals or lodging
- The address and phone number of the employer
As you can see, compliance is complicated, and there are plenty of hornets nests to avoid if you’re considering offering a daily pay benefit. Hopefully, the questions in this article provide a strong foundation for discussion with potential earned wage access providers to ensure that, when it comes to compliance, they’re dotting all their i’s and crossing all their t’s.BOOK A DEMO