The DailyPay Blog

[WEBINAR] Supporting Your Workforce’s Financial Security Through the COVID-19 Crisis

The needs of the workforce are very unique at the moment due to COVID-19. Our recent statistics show that 43% of employees using DailyPay are accessing their pay early for coronavirus-related expenses — a number that spiked 400% in recent days. Beyond the usual woes of making ends meet between paychecks, employees are also now concerned about having the groceries and supplies necessary to care for themselves and their families during quarantine, as well as keeping all their loved ones safe and healthy. This is a period of high anxiety for many Americans, but there are steps you can take as an employer to support your employees’ financial security and alleviate some of that stress.

This webinar features DailyPay’s founder and CEO, Jason Lee, and Jeanniey Mullen, DailyPay’s Chief Innovation and Marketing Officer. By tuning in, you’ll gain insight into how industry leaders are handling the ever-evolving rules, regulations and best practices associated with COVID-19 in order to support their employees as much as possible. So many employers are going above and beyond to ensure they are doing everything they can for their employees. It seems that in the midst of this crisis, many businesses are finally starting to realize how important the employee pay experience is to their company’s success.

From pay raises to bonuses to increased emotional support to an improved pay experience, there are multiple strategies employers can use to support their workforce through this crisis. This webinar will focus on how COVID-19 has impacted the hourly workforce, what other companies are doing to support their employees’ personal financial security, and how our team at DailyPay is helping our partners and their employees navigate COVID-19.

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Pay Different: Reimagining the Payroll Cycle In Post-COVID Workplace

Recently, DailyPay enlisted Mercator Advisory Group to conduct a survey of 1,000 U.S. low-income (income less than $75,000/year) salaried workers to determine the value and propensity of this demographic to participate in an on-demand pay (also called earned wage access) solution.

While much has been done to study hourly workers and their vulnerability to financial stress, far less has been done to study salaried workers and how they react to the challenges imposed by unforeseen financial hardships in between paychecks.

This study revealed that, by introducing an on-demand pay benefit, employers can help their workforce reduce the stress associated with paying monthly bills. Most notable and relevant today, nearly half (46%) of those polled are stressed by having to pay monthly medical bills. Allowing workers access to their earned income provides them with financial flexibility, and empowerment over their pay reduces their stress and increases attendance and productivity at work, at no expense to the employer.

Access to their earnings, before payday, helps employees to avoid more financially adverse options when they need access to cash, including using credit cards, drawing down savings, incurring overdraft fees and resorting to payday loans — all which can lead to employees incurring high-interest rates, fees and penalties.

Key findings of the survey include:

  • Nearly half (48%) of respondents reported having a shortfall between payroll cycles, at least sometimes
  • 46% surveyed have difficulty paying medical expenses, at least sometimes
  • About seven in 10 reached out to external sources for funding that often incur high fees; among these individuals, many are frustrated with high-interest rates (51%) and fees (26%) associated with borrowing this money
  • 23% incurred an unexpected expense they could not pay
  • Three in 10 report some difficulty in keeping up with monthly expenses

When presented with the option for an on-demand pay benefit, also called earned wage access, respondents saw the value in it and its ability to stop the cycle of debt. In fact, more than half noted they would also use the DailyPay platform to save money and become more fiscally responsible.

  • 34% responded that they would either “definitely use” or “probably use” DailyPay if it were offered to them.
  • When asked about services that could be replaced by DailyPay, respondents indicated the same potentially financially draining options that they reported using to obtain extra money to pay a bill, including check-cashing services, payday lenders and credit cards.
  • 52% noted they would use the “Save” feature that is unique to the DailyPay platform. The “Save” feature allows Daily Pay customers to put away money for future bills and expenses before they even get paid.

Data collected in this survey reveals the critical need for on-demand access to earned pay that Americans face in typical economic times. Imagine how much more access to earned income has meant to workers during the COVD-19 pandemic.

You can review the full study here. In addition, DailyPay and the Mercator Advisory Group will discuss the results of this survey during a joint webinar on Thursday, May 28, from 1 p.m.-2 p.m. ET. You can register for this webinar here.

Expect Employers to Accelerate New Pay Practices as the Economy Recovers

Since the COVID-19 health crisis began, employers have needed to speed up use of contactless on-demand pay programs (sometimes called earned wage access), according to employee payment leaders speaking during a recent podcast of The Source, by DailyPay.

The pandemic and the resulting economic shutdown is “one of those events where those in HR, Payroll and Finance have had to think through sets of challenges that they never thought through before in their professional careers,” said DailyPay CEO, Jason Lee. Employers can no longer be “looking for a five-year plan for transformation, we are looking at now,” he said.

This has meant the adoption of new pay practices at an accelerated rate.

Even before the coronavirus struck, companies already had started to address the changing pay needs of a tech-savvy generation of younger workers that “actually values pay choice and pay flexibility sometimes more than salary,” said ADP, LLC, Vice President, Future of Pay Jeff Gies. 

“This has driven the need for providing pay choices to workers,” Gies said.

The challenge for employers is closing the gap between the technological tools available on a personal level to deliver experiences instantly, such as ordering dog-walking services via a mobile phone application, and the applications used to pay workers, which have lagged behind, Lee said.

While these other applications are useful and significant, one would argue that “the experience one has with pay is much more important,” Lee said.

Gies echoed the disconnect by noting that one retail chain recently reacted to the customer desire during this health crisis for a contactless pay option, which was implemented, while their workers were still getting paper pay statements, which could potentially carry virus and disease.

Additionally, employers need to recognize there remains a large segment of workers that, prior to the pandemic, had not adopted digital payment methods. These workers are having to, overnight, modify their behavior, and this is uncomfortable for them. Gies asked: “How can employers help people make that transition?”

Both DailyPay and ADP have safe, secure programs that “empower, enable and put the employee at the center,” Lee said. As employers make the transition to digital and on-demand pay quickly, they can be assured that both providers are compliant and are the “gold standard for how we protect that data and keep it secure, and we have redundant systems,” Gies said.

DailyPay, through its pay experience platform, PayEx™ seeks to “leverage technology to be sure that folks are compliant,” while staying behind the scenes, Lee said.

A key issue frequently overlooked before the pandemic struck, but now is a need-to-have for employers, is providing a “core foundation of financial wellness,” Gies said.

As employers scramble to rehire workers and those workers look to climb out of a period of financial hardship, it’s important for employers to provide “simple, real-life, easy ways to put more money back in the pocket” of workers that are living paycheck-to-paycheck, Lee said and “ADP has developed the right kind of programs to fill this need for their clients.”

DailyPay users have access to savings tools in the app, so when they look to access pay, workers can think “I’m getting my pay, and as I’m getting my pay, I’m thinking about my savings,” Lee said. “It has to be easy and native  . . . and in a way it has to be connected to your pay.”

Go to thesource-dailypay.com to hear or watch the entire podcast, and to access previous podcasts that discuss on-demand pay, also known in the industry as early wage access. 

For additional resources on this topic, see:

Stimulus Checks, Wage Deductions and Controversy in the Lone Star State

Introduction

The novel coronavirus pandemic has fundamentally changed every aspect of American life. From social distancing measures, grocery store shortages and entire cities under lockdown, U.S. workers have been adjusting and trying their best to survive this “new normal.”

Efforts to curb the coronavirus have unfortunately led to the shutdown or temporary closure of businesses around the nation, triggering mass layoffs. Between March 15 and April 15, 2020, 22 million Americans filed for unemployment benefits. According to CNN, “the last four weeks have marked the largest and most dramatic rise in claims on record since the Labor Department started tracking the data in 1967.”

Attempting to keep the economy afloat

To help alleviate the sharp negative economic impact that mass layoffs and business shutdowns have caused, the federal government recently distributed $1,200 stimulus checks in an effort to boost consumer spending and keep the economy afloat.

There has been much debate over whether or not these checks are enough, and their disbursement has been riddled with glitches and delays. Despite the controversy, there is hope that the checks will help struggling workers pay their bills and get by during these unprecedented and difficult times.

Unexpected consequences

The employees of one Texas company may have been looking forward to receiving their government-issued checks, until learning that their employer has plans to “preemptively deduct funds from [employee] paychecks. That number is based on what [the company is] anticipating the government relief fund to be,” an anonymous worker for the company told KXAN

According to KXAN, the company has issued an agreement to workers, which would put the employees under a “temporary compensation reduction that is in line with the assistance that it receives from the federal government related to the COVID-19 pandemic.” By signing the agreement, the company’s employees would have their paychecks between April 6 and April 20 cut by 100% of any money received under the stimulus bill.

Not only does this move put employees at risk of getting paid less than minimum wage, but it highlights the reputational risk and potential media frenzy that can arise when companies process deductions. Wage deductions are illegal in 14 states (CA, CO, IN, KS, KY, MA, MN, MO, MT, NJ, NY, SC, VT, WI and WY), and cases like this one underscore the need for businesses to tread lightly into this regulatory murkiness. 

Is the risk worth it? For one employee, the answer is clear, “I would much rather sit in the unemployment line and be proud of my decision to leave a company that’s making these kinds of requests or demands, than hate myself for going along with it because I don’t agree with it.”

The takeaway

Staying compliant is a critical part of continuing business operations and maintaining a positive reputation. If a business gets into hot water for thwarting regulations, the implications can be dire. When making payroll decisions or implementing new payroll technologies, it’s imperative to carefully evaluate vendors to ensure your business is compliant and to effectively help your workforce achieve financial stability.

The Quarantined Economy Family and Community Connection Hacks

As the COVID-19 pandemic continues to keep us all isolated in the safety of our own homes, it’s important to remember that humans are social creatures who thrive on their connections to others. The five tips listed below will help you feel more connected to your family, friends and community at large and keep those feelings of loneliness at bay.

Commit random acts of kindness

They don’t have to cost a lot of money. Sending a friend an e-gift card for something as small as a cup of coffee can make their day during a time when “creature comforts” feel more sacred than usual. You can support a small business in your neighborhood by ordering a takeout meal from a local restaurant or buying a gift card to use in the future. Helping these businesses stay afloat during these trying times can mean the world to the owner and their staff. Know how to sew? You may be able to make masks that can be donated to hospitals and healthcare centers in your area. Knowing that you’re doing your part to help your network and your community will help you maintain your self-esteem and battle your own feelings of sadness, helplessness or smallness.

Connect with loved ones (from a distance) 

Even just reaching out to say hello and to see how your loved ones are doing is a great expression of care. Thanks to technology, there are infinite ways to connect, and a little bit of human interaction will go a very long way during these isolating times. Whether it’s a hand-written letter or a simple text, your message will be appreciated. Netflix has even created Netflix Parties so you can watch your favorite movies and shows in sync with your loved ones and easily chat with one another while watching. You can also try these awesome online games if you’re looking for fun ways to keep one another entertained. Lastly, this senior home is looking for people to “adopt a grandparent” to help the elderly who are unable to see their loved ones feel less lonely.

Work on a family history project

We all have one that we’ve always wanted to complete, whether it’s a family tree, a collection of beloved recipes, a scrapbook of important photos, you name it! These passion projects are often neglected when we’re busy, but they’re the perfect tasks to tackle now that we all have so much free time. Projects like this are cozy, nostalgic and help you feel close to loved ones who may be physically far away or even deceased. Click here for more out-of-the-box ideas on things you can create. These keepsakes will last long after the coronavirus pandemic is over as valuable family heirlooms and embody positive activities that came out of this tumultuous time.

Get the band back together

Missing your college roommates? Former neighbors? High school basketball teammates? This is the perfect time to reconnect with people who you may not talk to as often as you’d like. During this time of social distancing, we are all really aching for connection, and connecting with people from your past is a great way to feel more at peace and less alone. While it’s important that we continue to physically distance ourselves from one another to stop the spread of COVID-19, there is still so much we can do to fight feelings of isolation during this time. However, don’t forget to keep healthy boundaries and not let any toxic friends, family members or exes back into your life.

Support important causes however possible

Although most of us may not be directly caring for anyone with coronavirus, there are still so many things we can do to support those who have been deeply affected by the virus and the quarantine. Reaching out to support your community through donations of food or goods, monetary contributions, volunteering your time, or even just sharing campaigns on your social media can be incredibly helpful during this pandemic. Not only is your support absolutely invaluable, but doing your part for your community will aid you in feeling less helpless at this time.

These ideas just make good logical sense. Another thing that makes good logical sense is allowing employees to access their earned pay every day. If you want help with this, please reach out to us here.

We published another blog post in this series called, “The Quarantined Economy: Stress Reduction Hacks,” that provided a few tips om what you can do to reduce stress during this difficult time. 

DailyPay also recently hosted a webinar in which we discussed what we are doing as a company to help our remote workforce stay connected and engaged through this unprecedented time. Some of what we are doing may help your company as well.

Our Survey Says … DailyPay Saves Employees, On Average, $1,205 Per Year

On March 30, 2020, DailyPay conducted a randomized sample survey of 6,950 active users who had used DailyPay in the last 3+ months. The goal of the survey was to determine the actual monetary impact that DailyPay has on our users and to determine how DailyPay affected their financial security.

The survey received an impressive 24% response rate (1,690 users), but what was even more impressive was data that the survey uncovered.

Question 1: How often have you been charged an overdraft or late fee?

Before Using Daily Pay

Key takeaway: Before using DailyPay, 2 out of 3 respondents reported that they were being charged overdraft fees or late fees. 

Key takeaway: Before using DailyPay, only 32% of people had “never” incurred an overdraft or late fee. After using DailyPay, that number more than doubled to 74%.

Question 2: 

Key takeaway: DailyPay has helped employees avoid an average of $49.43 in fees, per month, from overdraft and late fees, or $593 per year.

Question 3:

Key takeaway: DailyPay has helped employees avoid an average of $51 in fees, per month, from payday loans, or $612 per year.

What this survey is telling us is that DailyPay is saving employees, on average, $1,205 per year in reduced fees from loans, overdraft fees and late fees.

Additional survey results from respondents:

  • 85% of users said DailyPay makes them more able to budget and pay large monthly bills like rent, utilities, car payment, etc. (vs. only 4% says it makes them less able)
  • 78% said that DailyPay helps them pay bills on time and avoid late or overdraft fees
  • 74% said DailyPay has helped reduce their financial stress
  • 70% said DailyPay has helped them to avoid taking out a payday loan
  • 59% said DailyPay motivates them to go to work
  • 56% said DailyPay motivates them to pick up more shifts or work longer hours
  • 51% said DailyPay has helped improve their financial health
  • 50% said DailyPay has helped them be more disciplined about spending
  • 46% said DailyPay has helped them to save more

In April, we conducted a second user survey to ask questions related to the impacts of COVID-19 on DailyPay users’ work and life.


16% of respondents reported that they applied
to their current jobs because they offer DailyPay.


Over half of those respondents work in the on-demand space for companies in food delivery and security; the remainder primarily working in health care or home care. 

In addition, we asked, “Does having access to DailyPay during the COVID-19 pandemic reduce your financial stress?” 90.1% of respondents answered, ”yes.” Compare this with the 70% above who said “yes” under normal circumstances and you can see how critical on-demand pay is in emergency circumstances in reducing financial insecurity.

These surveys of DailyPay users are proof positive that access to earned income is critical to employees who live paycheck to paycheck and who rely on a daily pay benefit to pay bills on time and avoid overdraft fees, late fees and predatory payday loans. DailyPay is, therefore, not only a less expensive alternative to other means to obtain cash, it puts employees’ own money into their wallets as they need it. This was especially true during the current pandemic when users needed access to earned income both to make necessary preparations and to keep their families safe.

The survey results also address the concerns of both employers and policymakers who wonder whether access to earned income causes irresponsible spending. It is clear from this data that the answer is an overwhelming “NO!” The fact that 85% of users are better able to make large monthly payments, like rent, car payment and utilities on time proved that access to their earned income actually makes them more responsible, saving them a whopping $1,205 per year in fees associated with overdrafts, late payments and payday loans!

Want to get started on helping your employees to save more of their own money by offering them access to their earned income, at no cost to your company and no changes to your payroll processes? 

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Pay Different: Reimagining Employee Pay in Light of the COVID-19 Pandemic

Almost two months ago, the world hit pause as restaurants, businesses and office buildings closed, weddings were canceled, airplanes were grounded and cruise ships were put in dry dock. Work from home and social distancing became the new “normal” and Zoom and Google Hangouts replaced conference rooms and in-person meetings. Living rooms became board rooms and bedrooms and dining rooms became offices.

The world as it once was has now changed forever. Our home lives have changed. Our work lives have changed. In fact, work as we used to know it was shattered.

As we begin our recovery, every company has an opportunity to think smarter. To look for ways to do things more efficiently. To rehire furloughed and laid-off workers and ensure that they have a safe workplace where they can be productive once again. To look for cost-effective ways to open up for business once again that will provide benefits to employees as well. One way to do that is through pay.

That is why DailyPay has launched the Pay Different campaign. As companies begin their rehiring efforts, they will be looking for top talent to fill their open positions, and they will all be looking to exactly the same talent pool. To compete effectively and in a cost-saving way, they will need to set themselves apart from the competition by providing valuable employee-centric benefits. They will need to do things better. To do things different. To pay different.

DailyPay’s revolutionary pay experience platform, PayExTM, is the cornerstone of the Pay Different campaign. This on demand pay platform comprises a series of premier capabilities that enable every worker to experience payday on their own terms. It’s a unique approach that brings an antiquated way of paying employees into the 21st century and enriches a company’s employee experience at every stage of the employee lifecycle, from onboarding to departure. 

With access to pay and save on-demand, employees feel more connected and valued at work and, therefore, their productivity increases. According to our research, over 80% of employees report that their satisfaction with their employer has improved since their company offered DailyPay. With PayEx, employees have an opportunity to save money each day and map their route toward fiscal responsibility.

A recent DailyPay research study shows what it means to your employees when you pay different. It also indicates that, on average, employees who use the daily pay benefit, save $1,205 per year because, with greater control over how they get paid, they are able to avoid late fees, overdraft fees and predatory payday loans. Of those we surveyed:

  • 78% say they are avoiding late fees.
  • 74% say that their financial stress is reduced. 
  • 70% say they no longer have to take out predatory payday loans.
  • 85% of those who use a daily pay benefit claim that it enables them to budget and pay large monthly bills like rent, utilities, car payment, etc.
  • 59% say DailyPay motivates them to go to work.

    Source: DailyPay On-Demand Survey 2020 

Offering DailyPay is a cost-saving solution for employers because it costs them nothing. But the RONI (Return On NO Investment) is tremendous for employees and employers. During the COVID-19 pandemic, access to on-demand pay has literally made the difference between putting food on the table or going hungry, paying bills on time or racking up even more debt, getting much-needed medical supplies and attention or watching a loved one suffer. 

And employers who offer a daily pay benefit experience have access to one of the biggest cost-saving plays that results in:

  • On average, a 50% reduction in turnover
  • The ability to recruit and fill open positions in half the time (52% faster)
  • More employees on direct deposit, reducing costs associated with issuing paper checks 
  • Reduced absenteeism because 59% of employees are more motivated to come to work
  • Greater productivity, because 74% of DailyPay users say having access to their earned income has helped reduce their financial stress, making them more productive at work

Source: DailyPay On-Demand Survey 2020 

Want to do right by your employees in the most cost-conscious way? Pay different. They’ll love you for it.

DailyPay will be rolling out a series of new initiatives tied to the “Pay Different” campaign in the coming weeks. Join our webinar on “Rebuilding Trust in the Workplace Post COVID-19” on Tuesday, May 19th from 1:00 – 2:00 p.m. ET.

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Helping Frontline Heroes Amid the COVID-19 Pandemic

Despite the tragic loss of millions of U.S. jobs as a result of the COVID-19 pandemic, there are a number of key industries that are powering today’s economy, providing access to essential services in ways no one ever dreamed possible. While some industries, such as restaurants, entertainment, and travel and leisure have been shuttered for the foreseeable future, others, such as grocery stores, hospitals and health care, and cleaning/facilities services have increased their hiring efforts due to an unprecedented need for additional frontline workers.  

There is even growth in industries that we never could have envisioned. For example, there is an increased need for workers in janitorial services to perform nightly deep cleanings in supermarkets and hospitals. There is a boom in the medical waste industry as hospitals, nursing homes and other healthcare facilities grapple with the need to safely and securely handle waste from the most contagious virus ever to infect an ever-growing number of people. 

Industries that are hiring frontline workers, those who are keeping our economy going, need to be ever mindful of the health and safety not only of the customers whom they serve, but their workers who are themselves at risk of contracting coronavirus from an infected customer or coworker. We’ve seen many of these customer-facing industries offering bonuses, raising their hourly wage and paying sick leave to workers who test positive for the virus. Some, like Walmart, are taking employees’ temperatures as they arrive at work and sending those who are sick home to quarantine, with paid sick leave for 14 days. 

As this pandemic unfolded, we at DailyPay started to think about what we could do to support these frontline workers in our partner companies, including Kroger, Parker’s Kitchen, Leevers Supermarkets, Dave’s Markets and Loop Neighborhood, and so many others.

In an effort to support financial flexibility during the pandemic, the first thing we did was to eliminate next-day ACH transfer fees for employees of our partner companies to allow them to access their earned income at no cost. At that time, our data reveal that 43% of employees using DailyPay were accessing their pay early for COVID-19-related expenses, a 400% spike in number over three days.

Next, we released the DailyPay Workforce Index that analyzes data based on changes in hourly staff and working hours across four different industries — hospitals, call centers, supermarkets and Quick Service Restaurants (QSR). This index was created to educate and inform media about the disruption caused by COVID-19. The index showed changes that differ greatly by industry, verifying that while some industries are reducing hours or workforce, others are, in fact, staffing up to meet demand. 

Several new partners asked for an accelerated, ahead-of-schedule launch of DailyPay for their employees, and we made a commitment to get them, and any other company that wants to offer DailyPay, up and running as quickly as possible.

The material changes in business and unexpected business needs that we have seen thus far are likely just the beginning. We are proud to be partnered with such forward-thinking companies during this challenging time and can’t wait to move into the next phase of the pandemic and rebuilding the way our world of work re-emerges.

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CORONAVIRUS STIMULUS PACKAGE: WHAT YOU NEED TO KNOW

The U.S. Senate officially designated April as National Financial Literacy Month in 2004. In support of this initiative, public and private sectors initiate outreach and education programs to help Americans understand and manage their finances. While the topics usually touch on personal finance matters like credit management, debt busting and setting goals and priorities for expenses and savings, this year, it feels appropriate to take a slightly different approach. 

With the pervasiveness of the COVID-19 crisis, Congress has introduced the “Coronavirus Aid, Relief, and Economic Security Act,” better known as the CARES Act. Every year, DailyPay supports employees with relevant financial literacy content and this year, we’re hosting “Financial Literacy Month: Financial wellness tips for uncertain times,” a 6-part personal finance video series that discusses key aspects of the stimulus bill. We hope that by empowering people with this information, it will help them navigate this crisis like an expert. 

As the leading fintech provider of on-demand pay solutions, DailyPay is at the forefront of creating a pay experience that puts employee needs front and center. Access to earned income has always been a core part of that mission but it takes on a new level of importance during this crisis when access to pay is critical to the financial stability of so many Americans. DailyPay has responded in numerous ways to support employers and employees alike through this crisis, from offering free next-day transfers to information-sharing through the DailyPay Workforce Index, which tracks the impact of COVID-19 upon the workforce across four key DailyPay partner industries. Creating exclusive content to keep our audience informed about the Coronavirus stimulus package for Financial Literacy Month is a natural follow-up to our other initiatives. 

Join us each week as we explore a new aspect of the CARES Act with Certified Financial Planner™ and founder of Brooklyn Plans, Kristen Euretig, as she explains what the various federal aid programs mean for you. 

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Below are the topics each video will explore and when you can expect to see them throughout Financial Literacy Month:

1) Assistance checks: April 13, 2020

Perhaps you’ve heard the government will be disbursing direct payments to individuals and married couples. In this video, we’ll discuss exact dollar amounts, timing and qualification thresholds so you know what help may be coming your way.

2) Housing/utilities/credit card payment relief: April 16, 2020

The coronavirus stimulus bill provides substantial aid centered around housing protections against foreclosures on mortgages and evictions for renters. Kristen will discuss policies that address failure to pay rent or mortgages, deferred credit card payments and protections for utility shutoffs.

3) Student loans: April 21, 2020

As part of the $2 trillion coronavirus stimulus bill, The Department of Education will suspend student loan payments, without penalty, through September 30, 2020. Kristen breaks down what that means for student loan borrowers.

4) Credit score: April 23, 2020

Kristen talks us through best practices for keeping your credit score high — even during a financial crisis.

5) Savings: April 28, 2020

Kristen walks us through her tips for saving and shares her advice for achieving financial stability during a financial crisis.

6) Unemployment: April 30, 2020

The record 10 million unemployed or furloughed Americans can thankfully seek relief through unprecedented expansions of unemployment benefits as part of the CARES Act. From increased weekly stipends to extended benefit durations, Kristen helps us understand what we can expect.

DailyPay feels that every American should have access to tools and resources to help them on their path to financial wellness and stability. During these challenging times, we know it’s more important than ever. We hope you’ll tune in and find the series helpful in understanding and leveraging the assistance available to you through the CARES Act.

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DailyPay is not a financial or investment advisor. The materials presented herein and in the video series are for informational purposes only and should not be relied upon as financial advice. Decisions based on information provided here and in the video series are the sole responsibility of the reader/viewer.

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The Novel Coronavirus Pandemic Demands Flexibility

The COVID-19 pandemic has evolved rapidly, with each day bringing an onslaught of news reports covering the spread of the novel coronavirus, promising new treatments or providing updates on how long social distancing measures will stay in place. The coronavirus crisis has spurred a global lockdown, and we have had to adjust our entire lives accordingly. 

This is a rapidly evolving situation — one that has demanded flexibility from all of us, especially when it comes to pay. 

One example? The government’s recent mandate requiring employers to halt wage garnishments for student loan debt. This means that the net pay for many workers will increase. And for some, this could be pretty dramatic, potentially even impacting an employee’s eligibility for on-demand pay programs. As payroll teams (who are already overstretched due to this crisis) are forced to quickly adapt, DailyPay, the leading provider of the daily pay benefit, is capable of changing with you. 

A Closer Look: The Power of DIA During COVID-19

One of DailyPay’s core differentiating features in the on-demand pay space is our Dynamic Income Algorithm (DIA). DIA creates a personalized profile for every DailyPay user, which accounts for differences in their net pay profile. This profile informs what we call the “advance rate” (or net-to-gross pay ratio). DailyPay is unique in that we are the only vendor that creates this personalized profile for each employee.

During a time when payroll teams are already overworked, DIA helps to lighten their load. Because DIA is dynamic, it automatically adjusts to this change and is able to increase the amounts available to affected workers, resulting in more take-home money to provide for themselves and their families during this crisis. 

The DailyPay advance rate is dynamic, meaning that as the pay profile of an employee changes, the advance rate will change to accurately reflect the net pay owed to the employee.

This enables the user to enjoy continuous, full access to the product, even if they have a non-standard pay profile (e.g., garnishments, benefits in arrears). The dynamic advance rate accounts for these unique employee particulars by adjusting the amount made available to the employee in the Available Balance, such that the amount made available to the employee will be net of these adjustments.

Want to learn more? Schedule a demo

To face a crisis such as this, the importance of quickly responding to change is of paramount importance. Individuals, organizations and technology have had to quickly adapt in order to strike the right balance between slowing the spread and working to maintain some sort of normalcy (healthcare workers, grocery store employees and pharmacy workers — we salute you). DailyPay is proud to provide a pay experience solution to help companies and their employees during this difficult time.

When selecting an on-demand pay provider, it’s important to choose a vendor with the experience and ability to serve you and your employees in any situation. To learn more about DailyPay and how our robust pay experience can benefit your company, click here