Sessions for Frank Dombroski
Paycards in a Touchless World and How it relates to Earned Wage AccessLocation: Grand Sonoran K
We 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.
- 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