As the construction industry continues to seek out new workers to fill the hole left by the labor shortage, many contractors are discovering that, in order to get these workers to sign on, they need to change the way they do things. Investing in flexible payment options is one such change that must be embraced to bring new workers to the project site.
In this brief article, a Raleigh contractor attorney from Cotney Construction Law will discuss why workers want flexible payment options that give them more control over when and how they are paid. If you are considering changing the way you pay your workers, consult a Raleigh contractor lawyer to ensure that you aren’t in violation of Department of Labor (DOL) payday requirements.
How We Pay Workers in America
The overwhelming majority of American workers are paid through direct deposit. Approximately 84 percent of employers offer direct deposit, with another 53 percent and 43 percent offering paper checks and nontraditional payment methods respectively. On the employee side, these statistics are much less consistent. Only 5 percent of employees accept nontraditional payment methods. Another 9 percent accept paper checks. The remaining 86 percent rely on direct deposit. So who’s at fault? The employers that don’t offer these alternative payment methods or the workers who don’t use them? It could be a mix of both, but it’s likely that, in many cases, employees simply aren’t aware of the tools at their disposal for getting paid or haven’t been informed of their options.
Different Lifestyles Require Different Payment Options
Digital payment tools like PayPal, Venmo, and Square have changed the way money moves from one person (or entity) to another. In a few clicks, payment can be sent from person to person without significant delays. These customizable payment options allow employers to alter pay schedules and facilitate gig economy workers without getting lost in the muddled world of bank deposits. Many millennials want to be paid in a way that fits their needs. Bi-weekly payments may not be to their liking. When you have the ability to offer diverse payment options, you have more chances to retain these workers. 79 percent of workers would rather work for an employer that prioritizes their financial wellness. 90 percent of millennial employees would divulge personal information related to spending habits, bank balances, and family/healthcare needs to their employer if it resulted in simplified management of finances and access to financial advice.
Changing the way you pay your workers is a potentially exciting prospect, but you’ll want to be cautious when overhauling your payroll structure and workflow. It’s something that can be done rather easily when working with an experienced attorney from a Raleigh construction law firm, since they’ll be able to help you maintain compliance with various DOL rules and regulations.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.