NASHVILLE, Tenn. (WTVF) — Employers are hoping a new recruitment tool will help attract workers as the Coronavirus pandemic drags on.
Major companies are dangling an uncommon benefit to lure job candidates — a chance to get paid every day.
Many companies like Wendy's, Taco Bell, Big Lots, Kroger, and nursing homes are using smartphone apps like Branch or DailyPay for this new service. This app allows employees to withdraw money from their paychecks moments after finishing their shift.
Employees can download the app and log in using a company-provided email or phone number.
The app shows workers by the hour how much cash they're earning as their shift progresses throughout the workday and allows them to transfer their wages to a connected bank account with the touch of a button.
Taxes and any pay garnishments are automatically taken out before a user can tap the funds.
Of course, withdrawing wages whittles down the amount workers would ordinarily get when paid in full every two weeks.
Employees are charged a fee to access their wages on the same day they receive them, and workers may get into a cycle of re-borrowing every pay period.
Some employers offer early pay for free to employees.
Some people feel this is a better model than pushing the costs onto low-wage workers who just end up paying to be paid.