Sessions for Frank Dombroski
Paycards in a Touchless World and How it relates to Earned Wage Access
Location: Grand Sonoran KWe will focus on how to utilize paycards to minimize both touch points and employee contact when distributing employee related payments. Recently the California Department of Financial Protection and Innovation announced a new opinion on Earned Wages Access (EWA) and this session will discuss how that opinion impacts paycards.
Objectives:
- What Vendors are subject to licensing requirements by the California Financing Law (CFL) or California Deferred Deposit Transaction Law (CDDTL)."
- “A third-party with no financial obligation to the employee could not rely upon this reasoning, because the funds provided would be for the recipient’s temporary use, and the third-party would presumably arrange to recoup the amounts it advanced.”
- DFPI reviewed seven criteria in reaching its conclusion:
1. Funding Source – Employer funded
2. Data Integration with near zero risk of overpayment – Accurate net earned wage calculation
3. Funds Delivery - Instantly to the employee’s account of choice
4. Fee Structure – Transparent and capped
5. Typical Usage – Fee to transfer amount and frequency
6. No Legal Recourse against employee
7. No Other Employee paid products attached to Earned Wage Access
Founder & CEO
FlexWage Solutions
SVP Wage & Corporate Disbursements
rapid!