Ethel Lawrence normally doesn’t have a hard time covering her expenses. But when her husband was prescribed a new medication that cost almost $400 a month, she was in shock.
“I was smacked in the face and low on cash. It wasn’t payday yet,” said the 72-year-old Oklahoma resident. “It’s not like it’s optional. It’s not a luxury item you can choose to buy or not. You have to buy it.”
To cover the unexpected expense, Lawrence was able to request a portion of her pay early, enabling her to avoid taking out a loan.
For many workers, two weeks is a long time to wait for a paycheck. And unexpected events — whether it’s an unplanned medical expense or car repair — can be financially devastating.
But a growing number of companies have started offering employees early access to their earned pay.