hourly worker
{{Short description|Employee paid per hour of work}}
[[File:Wages in the United States.webp|thumb|300px|Wages in the United States
{{legend-line|#5E5E5E solid 3px|Nominal wages}}
{{legend|#0094EC|outline=#0076BA|Adjusted for inflation wages}}
]]
An hourly worker or hourly employee is an employee paid an hourly wage for their services, as opposed to a fixed salary. Hourly workers may often be found in service and manufacturing occupations, but are common across a variety of fields.
Hourly employment is often associated but not synonymous with at-will employment.
Most countries operate minimum wage systems, which set a minimum rate of pay for hourly employees. As of October 2023, France has the highest hourly minimum wage at $13.80 per hour.{{Cite web | url=https://qz.com/these-are-the-countries-with-the-highest-and-lowest-min-1850894843 | title=These are the countries with the highest and lowest minimum wages | date=2023-10-03}} The United States has a comparatively low minimum wage for hourly workers at $7.25 per hour. Unusually, this rate does not apply to tipped employees, who are only entitled to an hourly wage of $2.13, which contributes to a strong tipping culture in the country.{{Cite web | url=https://www.dol.gov/whd/minwage/america.htm | title=State Minimum Wage Laws | U.S. Department of Labor }}{{Cite web | url=https://www.dol.gov/whd/state/tipped.htm | title=Minimum Wages for Tipped Employees | U.S. Department of Labor }} As a tipped employee, wages plus tips must equal the standard minimum wage or the employer is required to provide the difference.
Earned wage access
Earned wage access is a financial service offered to hourly employees who are given access to a portion of their accrued paycheck until the end of their payroll cycle.{{Cite web|title=Earned Wage Access: what it is and how it works|url=https://www.lano.io/blog/what-is-earned-wage-access|access-date=2024-06-26|work=www.lano.io}}
The technology to access the earned income can be implemented in a variety of ways: automatically credited to a prepaid card, deposited via ACH to the user's existing direct deposit or, in a bifocal approach, the accrued income is transferred to a bank account opened by the EWA provider.
In August 2016, Uber pioneered EWA in partnership with Green Dot, allowing drivers to request their earnings after each ride in exchange for a small payment.{{Cite web|title=Uber Expands Instant Pay For Drivers|url=https://www.pymnts.com/news/mobile-commerce/2016/uber-instant-pay-expansion-drivers/|access-date=2024-06-26|work=www.pymnts.com|date=17 August 2016 }}
In July 2018, ADP, America's largest payroll provider, began offering the EWA solution in its marketplace.{{Cite web|title=ADP Adds Earned Wage Access to Payment Platform|url=https://www.pymnts.com/payroll/2022/adp-adds-earned-wage-access-payment-platform/|access-date=2024-06-26|work=www.pymnts.com|date=17 November 2022 }}
In May 2019, Lyft introduced a similar feature for its drivers in partnership with Mastercard.{{Cite web|title=Mastercard, Lyft launch co-branded banking, debit card with immediate driver pay|url=https://www.paymentsdive.com/ex/mpt/news/mastercard-lyft-launch-co-branded-debit-card-with-immediate-driver-pay/?|access-date=2024-06-26|work=www.paymentsdive.com}}
On April 19, 2024, Governor Laura Kelly (D-KS) signed the fourth Earned Workforce Access Act (EWA) into law in the United States.{{Cite web|title=Democrat Governor Laura Kelly Signs Kansas EWA Bill into Law|url=https://www.payactiv.com/blog/democrat-governor-laura-kelly-signs-kansas-ewa-bill-into-law/|access-date=2024-06-26|work=www.payactiv.com|date=23 April 2024 }} The bill received broad bipartisan support in the Kansas House and Senate.
Earned income access providers are positioned as an ethical solution for payday lenders because they typically charge a small flat fee rather than interest, and there is no recourse, credit implications or underwriting for earned income access transactions.{{Cite web|title=Home|url=https://www.earnedwageaccess.info/|access-date=2024-06-26|work=www.earnedwageaccess.info}}{{Cite web|title=How to spot a payday loan posing as "earned wage access"|url=https://www.fourth.com/article/earned-wage-access-versus-payday-loan|access-date=2024-06-26|work=www.fourth.com|date=28 May 2024 }}{{Cite web|title=Early Access to Earned Wages vs. Payday Lending|url=https://news.bloombergtax.com/payroll/early-access-to-earned-wages-vs-payday-lending|access-date=2024-06-26|work=news.bloombergtax.com}}