New independent research conducted by the University of Connecticut, commissioned by DailyPay, reveals the negative consequences for Connecticut workers following the state's January 2024 decision to limit their access to Earned Wage Access (EWA) services. The study, based on a survey conducted in February and March 2025, highlights the adverse effects of the measure, which effectively shut down instant EWA services that had been available in the state for almost a decade.
According to the survey, over two-thirds of respondents (67%) indicated that EWA had positively impacted their finances prior to the shutdown. Most EWA users utilized their earned wages for essential expenses such as food and groceries (85%), transportation or gas (63%), and rent or mortgage (59%). Notably, the majority of survey participants were women (64%), many with children at home, described as credit-constrained and living paycheck-to-paycheck.
The research indicates that the closure of EWA services adversely affected this demographic. It finds that some Connecticut working families had to go without necessities (36%) or resorted to costlier alternatives, including using credit cards (26%) or borrowing from friends and family (31%). Others were compelled to sell valuable items (14%), engage in pawning (8%), or take out payday loans (6%), which carry high finance charges of $10 to $30 per $100 borrowed.
Professor Raissian commented, “Currently, when families are feeling the crunch of high cost-of-living, as well as cut backs on food benefits, an avenue for people to access necessities is blocked. As a result, they either go without or turn to using credit cards with their related high fees, or other predatory alternatives.” Raissian suggests the Connecticut legislature consider measures like Senate Bill 1396, which could facilitate access to EWA with consumer protections.
Phil Goldfeder, CEO of the American Fintech Council, added, “This report confirms what we’ve long known — Earned Wage Access is a lifeline for working families. Connecticut didn’t eliminate financial need by curbing access to EWA, it simply took away a resource that helped families meet those needs with dignity. The result has been predictable and painful: more reliance on pawn shops and predatory loans. We urge Connecticut lawmakers to consider thoughtful regulation like SB 1396 that prioritizes transparency and consumer protection, while preserving access to critical financial flexibility tools that workers need.”
The Connecticut Earned Wage Access User Impact Study is accessible for further reading.
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Data for the study was collected through a quantitative online research survey conducted between February 25, 2025, and March 9, 2025, with responses sourced via direct emails from prominent EWA vendors.
Good Policy Partners serves as a communications and advocacy consultant for DailyPay.