The North Dakota Senate Industry and Business Committee convened on March 11, 2025, to discuss the impact and operations of DailyPay, a financial technology company providing earned wage access (EWA) services in the state. Since its establishment in North Dakota in 2015, DailyPay has partnered with over 200 local businesses, benefiting more than 21,000 employees.

The meeting highlighted how DailyPay integrates with employers' payroll systems, allowing employees to access their earned wages before the regular pay period concludes. This service is particularly beneficial for workers facing unexpected expenses, enabling them to access funds they have already earned without incurring debt or fees associated with traditional loans.

DailyPay's model operates on a unique premise: employees can withdraw their net earnings up to four times a day, based on actual wages earned rather than anticipated future income. This approach has proven advantageous for both employees and employers, as it reduces turnover and absenteeism while encouraging workers to take on additional shifts.

Key features of DailyPay's service include no interest or late fees, no underwriting, and a flat fee of approximately $3.49 for instant transfers to bank accounts. Additionally, employees can opt for a no-cost transfer option that takes one to three business days. Approximately half of the users on the platform track their wages without making transfers, while the other half access an average of $120 per transfer.

The committee also discussed the broader implications of EWA services on financial wellness. DailyPay provides tools for savings, credit score insights, and free financial counseling through partnerships with nonprofit organizations. Research indicates that 78% of users who previously faced late payment issues reported savings on fees by utilizing DailyPay's services.

DailyPay's operations are currently regulated in six states, and the company expressed support for further regulation within the industry. The meeting concluded with a recognition of the potential benefits of EWA services in promoting financial stability for North Dakota workers, particularly in light of the challenges posed by infrequent pay schedules.