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On-Demand Pay Policy and Student Loans The Trump Administration has reversed the previous administration’s policy of treating most earned wage access (EWA, also called on-demand pay) programs as loans covered by the Truth In Lending Act (TILA) to treating most EWA programs as not loans. This position, consistent with the first Trump Administration, runs counter to consumer watchdog group claims that such arrangements allowing workers to access at least some of their earned pay amounts prior to payday are predatory loan arrangements. Look for more positioning and clarity on this issue in 2026. Also in 2026, payroll will be busier administering student loan garnishment orders, but the Education Department may not have the resources to administer that function. The temporary suspension of garnishments for overdue student loan payments began during the COVID pandemic. The Foreign Worker Agenda Upon taking control, the new administration instantly closed
immigration channels, and is re- working acceptance of skilled foreign workers. Justified by the claim that the U.S. was being invaded by illegal immigrants, the President used his emergency executive authority to circumvent normal legal processes, asserting that it now has broad power to arrest, jail, and deport those illegally in the country. Despite much media attention, so far, Congress and several court decisions have had mixed results in limiting these actions. The moves impact employers and their payroll operations by making it more difficult to shore up workforces through working immigrants. Arrests and deportations create termination pay quandaries, while arranging for legal, highly-skilled foreign workers under the H-1B visa category is not only much more expensive, but approval for this visa-type is dramatically changing. DEI Directives The administration immediately pushed to remove policies that it claims illegally favor those in certain groups, such as ethnic minorities and LGBTQ communities, over the white population.
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GLOBAL PAYROLL MAGAZINE ISSUE 19
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