The fight for fast food workers to earn a living wage is still underway. But how — and when — they get paid is already in the midst of change. A tight labor market has led some fast food restaurants to provide same-day and next-day pay in a bid to attract and retain staff, Bloomberg reported on Friday, May 15th. Beginning in June, fast food workers at eight Church’s Chicken restaurants can choose to get half of their earned pay the day after their shift. It’s a pilot program that, depending on its success, may spread to other locations in the future.
“It will give the employee the chance to get spending money quicker,” Joe Christina, Church’s CEO, told Bloomberg. “Some people just can’t wait two weeks to get paid.”
Church’s is offering the program through Instant Financial, an instant pay platform that charges no interest or fees to employees who use the service. Fast food workers will receive a notification via the Instant app after every shift and can choose to claim part of their pay. Money can be deposited onto an Instant card that works just like a debit or credit card. Funds can also be transferred to a traditional bank account or withdrawn fee-free at participating ATMs.
Instant Financial and Church’s Chicken aren’t the only companies that have teamed up to change the way fast food workers are paid.
Talkin’ bout crispy goodness. Get our $5 Spicy Tendersmealbeforeit ✌ pic.twitter.com/ZeBbYcGjog
— Church’s Texas Chicken (@ChurchsChicken) May 20, 2019
According to The Takeout, some Taco Bell, Panera, Applebee’s, McDonald’s, and Pizza Hut locations offer a similar service called Branch.
Congratulations to the Live Más Scholarship Class of 2019. 🎉
— Taco Bell (@tacobell) May 15, 2019
Like Instant Financial, Branch lets users claim up to half their wages the same day they work, albeit for a $3.99 fee.
Targeting payday lenders, Branch adds pay on-demand features for hourly workers https://t.co/LN74Uo9T0h by @jshieber pic.twitter.com/Hv3t5R82fT
— TechCrunch (@TechCrunch) March 18, 2019
Earnin is yet another option for people who want to access their earnings almost immediately. The app has been embraced by gig economy workers, such as those who drive for Uber or DoorDash, according to Medium.
It's time for a new financial system—one that's fair for all and doesn't force 78% of Americans to live paycheck to paycheck. See how Earnin is revolutionizing the financial system by providing people with tools to take control of their financial future. https://t.co/RjTyV3FDQK pic.twitter.com/eFMfKCeCwY
— EarnIn (@earnin) May 20, 2019
The apps are seen as an alternative to payday loans, which charge sky-high interest rates to workers who need funds to bridge a cash-flow gap in between paychecks.
.@BernieSanders and @AOC have a deceptively simple proposal that would transform the credit card industry and virtually eliminate payday loans: cap interest rates on consumer loans at 15% per year. https://t.co/xPZOMtue3R
— Vox (@voxdotcom) May 16, 2019
Other potential benefits to same-day and next-day pay include reduced turnover among fast food workers.
Although the chance for fast food workers to get paid so quickly is a huge step forward, low pay in the service industry is still a huge issue.
Fast-food workers like Grace, Eshawney, Jaron, Devin, Wanda, and Angel are going ON STRIKE this THURSDAY to stand up against low pay, and mistreatment at @McDonalds.
— Fight for a Union (@FightForAUnion) May 20, 2019
Stand with us: https://t.co/IqD8XyeYWF #FightFor15 pic.twitter.com/A5OBXPTzRS
Luckily, elected officials like Alexandria Ocasio-Cortez and Bernie Sanders have made raising the federal minimum wage a big part of their policy platforms.
States that had passed a $15 minimum wage four years ago: Zero
— Bernie Sanders (@BernieSanders) May 17, 2019
States that have passed a $15 minimum wage now:
California
New York
Massachusetts
New Jersey
Illinois
Maryland
and today, Connecticut
When people see the justice of an idea, it spreads like fire. #FightFor15 https://t.co/nb44Kb5RKP
Let’s hope same-day and next-day pay is just one more step toward paying service industry workers a living wage.
As a person who actually worked for tips & hourly wages in my life, instead of having to learn about it 2nd-hand, I can tell you that most people want to be paid enough to live.
— Alexandria Ocasio-Cortez (@AOC) February 26, 2019
A living wage isn’t a gift, it’s a right. Workers are often paid far less than the value they create. https://t.co/P5FsQuhCTW
At the end of the day, fast-food workers deserve it. After all, they put up with a LOT.
They really, truly do.
