Jay King, Special to California Black Media Partners

It’s no secret that too many Americans are living paycheck to paycheck. What appears to be a secret is that an industry that is casting lifelines to those in need is being blocked by state and federal regulators.

The industry in question is Earned Wage Access (EWA). EWA is an innovative fintech solution that empowers workers and helps them pay bills on time by accessing wages they’ve already earned. A 2021 study found that EWA services often prevent consumers from missing bill payments and slipping further into debt.

Despite the many benefits and the fact that businesses all across the country, including Paychex, now offer EWA to employees, the Consumer Financial Protection Bureau (CFPB) recently issued guidance that could effectively wipe out this tool and, in the process, let struggling families, already in jeopardy, drown even deeper in debt.

The numbers tell the story. According to a recent study, 66% of Americans report living paycheck to paycheck, while 40% report being unable to afford a $400 emergency expense. They face hardship paying bills, covering financial emergencies, and otherwise making ends meet. These aren’t just workers with minimum-wage jobs either; half of those U.S. consumers facing hardship earn more than $100,000 per year.

This dynamic is especially pernicious in the Black community. According to recent figures, Black Californians currently have the lowest household income of any major racial or ethnic group in the state. Research also indicates that nearly a third of Black families are late paying their debts and 42% use credit cards just for basic living expenses while half do so to send their kids to college.

EWA is ready to support these individuals, yet the CFPB seems to think these services are just loans masquerading as something new. Not only is this wrong, but the agency’s interpretive guidance reverses their previous guidance and contradicts the established language and interpretation of the Truth in Lending Act (TILA).

This change could have a devastating impact on the very people it purports to protect. By categorizing EWA as loans, the CFPB would impose unnecessary regulations that stifle innovation and could drive consumers back toward high-cost payday lenders.

As I mentioned, the numbers tell the story, and EWA has an impressive track record. A recent study from Citizens Bank found that seven in 10 middle-market companies currently offer EWAs to employees, with more planning to do so in years to come. As it happens, few states better illustrate the value, and excellent ROI, of EWAs than California. Californians employed by Walgreens, Home Depot, FedEx Office and other businesses have accessed more than $1.67 billion in wages through EWA. Equally promising, more than half of consumers who tap into EWA can now afford a $400 emergency.

EWA services have always proven to serve the greater good, particularly in supporting underserved communities like the Black community, which is disproportionately affected by financial instability. The CFPB should take advantage of this opportunity to make sure they continue to do so, rather than creating obstacles that could undermine their effectiveness.

I urge the CFPB to rethink this misguided guidance. The agency must prioritize fairness and innovation to protect both consumers and the businesses that employ them.

About the Author

Jay King is CEO of the California Black Chamber of Commerce.

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By Antonio Ray Harvey, California Black Media

 On Aug. 15, the Assembly Appropriations Committee voted 11-3 to pass a bill Sen. Lola Smallwood-Cuevas (D-Los Angeles) authored requiring state-funded contractors hired for large-scale infrastructure projects prioritize hiring “disadvantaged workers.”

Senate Bill (SB) 1340 now moves to the Assembly floor for a full vote.

During a rally on Aug. 13 in front of the State Capitol Smallwood-Cuevas said the bill would help ease the state’s “job crisis” – which only impacts Californians from underserved communities of color whose unemployment rates remain in the double digits.

For all Californians, the unemployment rate is relatively low at around 5.2%.

“We’ve been working on this issue, I would say, a good part of a decade, fighting for better opportunities for our communities to benefit from the investments of public dollars in our infrastructure (projects),” said Smallwood-Cuevas.

The passage of SB 1340 by the Assembly Appropriation Committee happened the same week that the Public Policy Institute of California (PPIC) released a report showing that Black Californians have the lowest employment rate in California’s top 10 occupations. Those professions include managers, truck drivers, registered nurses, customer service reps, teachers, construction workers, CEOs and legislators, among other fields.

Overrepresented at lower income levels, Black and Latino families consist at or below the 10th percentile while comprising 44% of all families in the state, the PPIC reported. For every dollar that White families earn, Asians make 95 cents, Black families earn 58 cents, and Latinos earn 52 cents.

“There should be equity and labor,” Smallwood-Cuevas said. “It’s not enough to pass a bill. It’s about implementation and intentionality.”

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By Terri Schlichenmeyer

“Make College Your Superpower” by Anna Esaki-Smith, c.2024, Rowman & Littlefield, $30.00, 189 pages

“Rethinking College: A Guide to Thriving without a Degree” by Karin Klein, c.2024, Harper Horizon, $29.99, 256 pages

There are about to be a lot of lasts in your household in the coming months.

The last first day of school. The last homecoming, the last Christmas program or sports event you’ll have to attend. The last spring break, the final prom, and the last day of school, they’ll all be bittersweet, but you’ll manage. As in these new books about college, you’ve got big decisions to make first.

College or not? It’s a big question for every high school senior. And the answer is…

In her new book “Make College Your Superpower” (Rowman & Littlefield, $30.00), author Anna Esaki-Smith says, “It’s a great time to be a student” because, though life has been “weird” with the pandemic, shut-downs, and such, “technology has changed everything.”

Today’s students know a lot about technology, for one thing – possibly more than their professors do, giving students “an edge.”  Facial recognition on a variety of campuses has recently shown more “happy” faces than ever before.

To be one of those satisfied students, she says, don’t go by magazine rankings. Learn the smart ways to apply to the right college for you. Play up what you do best, not what you love most. Take the quizzes and the workbook-like questionnaires in this book and know yourself. Be savvy about finances and the lack thereof.

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And get out and meet people! That’s part of what college is for.

Then again, college is not for everyone.

In the new book “Rethinking College” by Karin Klein (Harper Horizon, $29.99), you’ll learn that despite what you’ve been told for most of your high school career, you can thrive and succeed without a four-year degree.

Volunteer work is a valid way to gain experience that could open doors in environmental groups, food pantries, and service groups that offer some paid positions within the organization. An apprenticeship may be a way to learn a trade through on-the-job instruction while also receiving a wage; an internship could accomplish the same. Exploring how one’s talents can be turned into a job is always possible, especially if what you love doing is in high demand. Or you could take your visionary skills and start your own business with surprisingly less money than you may have thought possible.

This is the kind of book you want to give the high schooler who’s not so-called college material, or who chafes against what college has to offer. It also opens a whole world of possibility for anyone who’s older, with high school long behind them.

If these books aren’t exactly what you or your high-school senior needs for the next few months and beyond, then ask your local librarian or bookseller for help. They’ll have books for you on surviving Freshman year, on knowing what to expect at college, on homesickness and missing your teenager, and on how to land a great apprenticeship, non-profit position, or how to start your own business. Your librarian or bookseller will have something for your Year of Lasts, and the first book you’ll want for success.

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