More than six months ago, Connecticut’s new rules on Earned Wage Access (EWA) went into effect, implementing restrictions on the service that allows workers to access a portion of their wages early, forcing many EWA providers in the state to stop offering services in Connecticut, and causing devastating rippling effects on workers’ wellbeing.
As President of the Connecticut Retail Network, I’ve seen the rippling effects the restriction of these services has had on our member businesses and their workers. Connecticut’s small businesses and residents are still reeling from inflation which has caused folks to cut back on spending and their ability to pursue economic opportunities. For many workers, EWA provided crucial financial flexibility to manage day-to-day expenses without resorting to high-interest loans or accumulating credit card debt.
Currently, Connecticut stands alone as the only state that has imposed such stringent restrictions on EWA, denying our workers a financial tool that is available to every other employee across the country. This reality only amplifies the challenges that workers in the state face including the constantly increasing cost of living…