By Ryan Ashton
As the workforce evolves, so do expectations around pay. However, as earned wage access (EWA) grows in popularity, employees are increasingly calling for regulation to ensure it is offered responsibly and fairly. In this 4th article in a series breaking down our recent 2024 Wages & Wellbeing study, we explore employee sentiment around the regulation of EWA and the role it plays in creating a more equitable work environment.
Key Findings:
- 52% of workers believe companies should not be allowed to charge fees for accessing earned wages.
- 63% of employees would feel more comfortable using EWA if there were state or federal regulations in place.
- 42% think companies should be required to offer EWA.
- 73% of employees believe job seekers want to know if a company offers EWA as part of its benefits package.
The Push for Fee-Free Earned Wage Access
One of the study’s clearest takeaways is that employees want access to their wages without the burden of additional fees. 52% of workers feel companies should not be allowed to charge fees for providing EWA. Many workers already struggle with financial stress, and additional fees can exacerbate this problem. Employees want EWA to provide relief, not further financial strain.
Fee-free access to earned wages is not just a perk—it’s quickly becoming an expectation. This trend highlights the growing importance of offering competitive pay options to attract and retain top talent. Workers see EWA as a tool to help manage cash flow, cover emergencies, and avoid high-interest loans or payday advances. The more accessible and cost-free these solutions are, the more beneficial they will be for employees.
The Role of Regulation in Earned Wage Access
While EWA is gaining traction, many workers are concerned about how these programs are managed. According to the study, 63% of employees say they would feel more comfortable using EWA if it were regulated by state or federal authorities. This sentiment is particularly strong among younger generations, such as Gen Z and Millennials, who are more likely to seek transparency and protection in financial services.
Regulation could help set consistent standards for how EWA is offered, ensuring that workers are not subjected to hidden fees, complex terms, or unreliable service. Clear oversight would also increase trust between employees and employers, improving overall workplace satisfaction.
Why Businesses Should Pay Attention
For employers, the data from the Wages & Wellbeing study sends a strong message: workers expect earned wage access to be offered responsibly and without fees. In fact, 73% of employees believe EWA is an important benefit that job seekers want to know about during the hiring process. Offering fee-free EWA can give businesses a competitive edge in a tight labor market.
Furthermore, adopting EWA in a way that aligns with regulatory expectations could improve employee retention and loyalty. When workers feel financially secure and trust their employer’s payroll practices, they are more likely to stay longer and be more engaged at work.
Conclusion
As earned wage access becomes a more widely accepted employee benefit, regulation will play a critical role in shaping its future. Employees are advocating for transparent, fee-free EWA solutions, making it clear that businesses offering this benefit responsibly will have a significant advantage in attracting and retaining talent.
To stay ahead of these trends, employers should consider implementing no-fee EWA programs while remaining proactive about potential regulatory changes. With Instant, offering fee-free, real-time employee pay solutions is easier than ever. Learn more about how EWA can benefit your business by visiting Instant Financial today, or download the full Wages & Wellbeing report.
