California
Proposed regulations threaten on-demand pay benefits in California
One new benefit California employers are using to attract workers is something called Earned Wage Access (EWA). EWA—also known as on-demand pay—gives employees access to their earned wages before a traditional, scheduled payday.
Many on-demand pay platforms link into an employer’s payroll system. Workers can log in and see how much pay they have accrued. If a worker needs money to pay for an unexpected cost, they can tap into their wages ahead of payday. Most on-demand pay providers offer next-day deposits for free. Instant access typically comes with a small ATM-like fee.
Employees have reported using on-demand pay for a variety of reasons. Testimonials have highlighted how access to earned wages can help workers pay bills on time without incurring late fees, or pick up new prescriptions, or help manage the many unforeseen costs that come with raising kids.
Employers that offer the benefit include major national retail chains like the Kroger family of grocery stores, as well as hospitality and healthcare leaders like Los Angeles-based Behavior Frontiers. This last company took the initiative to offer earned wage access benefits in 2022 to boost employees’ financial health and mental wellness.
Research shows on-demand pay benefits both employers and employees. One 2022 study by payroll provider ADP found 96 percent of employers who offer on-demand pay had an easier time attracting talent. In another study, 95 percent of employees with access to on-demand pay stopped or reduced use of payday loans.
As on-demand pay has grown in popularity, so too has government interest in regulating the product. Proposed regulations in California carry major consequences. In May of 2023, the state’s Department of Financial Protection and Innovation (DFPI) began the process of drafting rules to regulate on-demand pay in the state.
For California employers and workers, DFPI’s proposed regulations are bad news, as they would treat earned wage access as a loan. If enacted, the regulations would take a simple benefit with transparent, low fees and turn it into a complex lending product.
Shoe-horning an innovative benefit like on-demand pay into California’s legacy credit regulations does not make sense. This classification would hurt consumers by encouraging new terms, fees, and penalties. It would also make the benefit more complex and less attractive for employers to offer.
The Los Angeles County Business Federation “BizFed,” an advocacy alliance that unites 240 diverse business organizations representing 420,000 employers with 5 million employees in Southern California, urged state regulators to modify their proposal. BizFed supports DFPI’s attempt to put safeguards around on-demand pay but believe a product shown to help both employers and workers deserves tailored regulations.
The good news is that DFPI has options at its disposal. The on-demand pay industry has proposed a common-sense compromise that allows employers to continue offering the benefit without a lending classification. This solution, which also guarantees clear fee disclosures and bans interest, late fees and debt collections, keeps things simple for both consumers and businesses.
DFPI is expected to finalize its on-demand pay rules soon. California employers and employees who have come to rely on on-demand pay are counting on regulators to acknowledge the negative consequences of treating the product as a loan.
Regulations that squelch job growth are not in the state’s best interests. DFPI must pivot to a plan that accommodates earned wage access benefits. If the department is not capable of mapping out a more productive path, employers and employees are depending on Gov. Gavin Newsom and the Legislature to step in with solutions.
Tracy Hernandez is Founding CEO of the Los Angeles County Business Federation, widely known as “BizFed.”
California
‘Sneaker wave’ sucks California fisherman out to sea
A fisherman was pulled from the ocean and rushed to a hospital in critical condition after a powerful “sneaker wave” swept him off the shoreline at Baker Beach in San Francisco.
The dramatic May 29 rescue unfolded around 1 p.m. in the Presidio, where emergency crews responded to reports of a person sucked out to sea.
According to the San Francisco Fire Department, witnesses said the fisherman was standing along the shoreline when a sneaker wave suddenly surged ashore, knocking him to the ground and into the ocean, leaving him incapacitated.
Bystanders quickly called 911, helping launch a large-scale rescue effort that included San Francisco firefighters, an SFPD police boat, drone units and a helicopter.
Within minutes of being dispatched, three rescue swimmers from SFFD entered the water and reached the victim, officials said in a post on X. The crew conducted an open-water rescue and brought the fisherman safely back to shore.
Paramedic rescue swimmers and additional emergency medical personnel immediately began advanced life support measures and rushed the victim to a nearby hospital in critical condition, fire officials said.
Officials said the harrowing ordeal serves as a reminder of the dangers posed by sneaker waves, which can strike with little or no warning.
Unlike typical waves, sneaker waves can surge much farther up the beach than expected, even on days when ocean conditions appear calm. The powerful waves can easily knock people off their feet and drag them into the water before they have time to react.
Fire officials urged beachgoers to stay off wet sand and rocks, keep a constant watch on the ocean and never turn their backs to the water. Anyone who sees a person swept into the surf is asked not to enter the water, but instead to call 911 immediately and throw the victim a flotation device if one is available.
“Early calls to 911 save lives,” fire officials said.
California
California reports one of largest drops in homelessness in past year, Hud reports
California reported one of the largest decreases in homelessness over the past year, according to a new report from the US Department of Housing and Urban Development (Hud).
The Golden state recorded a total unhoused population of 181,934 in 2025 – an almost 3% decrease since the year prior, placing it among the five states with the largest decreases from 2024. However, more significant drops were recorded in Illinois (44%), Hawaii (41%), Florida (11%) and New York (8%).
The new data signals at least some success on the part of Gavin Newsom, the California governor who has intensified his crackdown on homelessness over the past year. In May 2025 he announced a new model ordinance for cities and counties to address “persistent” homeless encampments, as well as $3.3bn in voter-approved funding to increase housing and drug treatment programs.
California, along with New York, had the largest population of unsheltered people recorded in 2025. Homelessness has been a key issue in this year’s gubernatorial race, as well as in the Los Angeles mayoral race.
The data also showed that the national homeless population decreased for the first time since 2016, coming down 3% from 2024. The Trump administration attempted to downplay the small one-year decrease, instead highlighting the fact that homelessness has increased 27% since 2013.
“The data is clear that the status quo of ‘housing first’ has failed to meaningfully reduce homelessness, resulting in crisis levels of people living on the streets,” Scott Turner, the Hud secretary, said in a press release. “HUD is restoring its programs to advance recovery and self-sufficiency and to ensure that taxpayer-funded benefits serve American families.”
As the administration attempted to downplay the drop in homelessness, it also sought to connect the success to its immigration policies, stating that the 2025 decrease was “attributable to decreases in Sanctuary Cities”.
The data comes from the federally mandated homeless point-in-time count, which tallies people sleeping in shelters and outside on a given day. On a single night in January 2025, there were 745,652 homeless persons in the United States.
While anti-homelessness advocates cited the decrease in homelessness as a “relief”, they also pointed out that the Trump administration’s policies may erode the progress that has been made.
“So much of the progress reflected in the 2025 PIT Count is due to targeted housing and service resources that were available in 2024 to rehouse people, including the highly successful Emergency Housing Voucher program, and new funds to address rural and unsheltered homelessness,” Ann Oliva, the CEO of the National Alliance to End Homelessness, said in a statement.
“Unfortunately, the Trump Administration has largely deprioritized these tools and worked to dismantle the very systems that drove these reductions.” Oliva pointed to the administration’s proposed cuts to permanent housing programs, which the organization found would “force at least 170,000 formerly homeless people back on the streets”.
The government has also mandated treatment for recipients of federal housing vouchers, and penalized jurisdictions that employed harm-reduction strategies such as safe consumption sites. In April 2026, Hud introduced a proposed rule that would require federally funded shelters to house prospective tenants based on their birth sex alone.
California
I moved from Germany to the US for my career. The high cost of living in California shocked me, but it’s worth it to live here.
This as-told-to essay is based on a conversation with Christiane Schroeter, a 49-year-old professor of innovation and entrepreneurship and leadership strategist in San Luis Obispo, California. The following has been edited for length and clarity.
I moved from Limburg, Germany, to the US in 1999 as an exchange student for my M.S. degree before returning to Germany to complete additional graduate work. I returned to the US in 2001 as a Fulbright Scholar to pursue my Ph.D. at Purdue University.
After I earned my Ph.D. in 2005, I decided to build my career and my life in the US rather than return to Germany. I had met my husband during my graduate school years, and together we chose to put down roots on the West Coast.
I joined the faculty at Cal Poly in September 2007 and gave birth to my daughter in December of that year. I started a new job, pregnant, while moving across the country. Building a career and a family at the same time, far from my home country, shaped everything I came to understand about the real cost of relocating.
Today, I’m a leadership strategist, professor of innovation and entrepreneurship at Cal Poly, San Luis Obispo, author of several books about leadership, and a podcaster.
The new country feels last longer than you expect
I was 23 years old when I first moved to the US. I expected the obvious expenses, such as flights, paperwork, and the starter purchases you don’t think about until you need them.
What surprised me was how long the newness stayed expensive. Even when your income is objectively higher, fixed costs rise so quickly that it takes very little to feel financially stretched.
I spent hours learning basics I had taken for granted in Germany, like opening bank accounts, building credit from zero, and figuring out what to do when you’re asked for a Social Security number before you have one.
I also had to learn how rental contracts, deposits, phone plans, and transportation work in places where you need a car, including registration, insurance, and DMV requirements. Time becomes money fast when you’re studying, working, and trying to build a future at the same time.
In Germany, I knew how life worked. In the US, I had to rebuild that knowledge piece by piece.
Housing in California made me realize how quickly additional money gets absorbed
Many people underestimate how dramatically living in California can affect their budget.
For me, one of the highest unexpected monthly costs was the mortgage. Housing was not slightly more expensive. It became the financial anchor that shaped everything else. My husband and I had to make monthly decisions around that number.
Living in California was a genuine upgrade with bigger houses and bigger yards. California’s abundance of fresh produce, gorgeous weather, and proximity to the ocean fit my lifestyle better than Germany ever did. The cold, rainy days and a culture I never fully connected with were not the life I wanted.
I would honestly say I live in a “Goldilocks place.”
The cost of childcare changed how I thought about security
The hardest trade-off was realizing how expensive support can be when you live far from friends and family. After I delivered my first child, I faced the childcare scramble almost immediately. I remember touring childcare centers and wondering how families afford monthly costs for multiple children. I spoke with mothers who realized that their earnings would nearly match what they were paying for childcare.
At the same time, I was adjusting physically and emotionally to becoming a mother, and when you’re far from family, there’s no built-in safety net for the unpredictable moment, such as a sick day, a last-minute meeting, or an emergency.
I learned that many US families create a fragile patchwork of childcare and babysitting. If you have children, distance from family is not only emotional but also logistical. It can become one of your highest monthly costs, and one of your biggest mental loads.
On a lesser note, one bill shocked me: our cellphone bill. Our family plan with four phones, two watches, and two iPads is about $300. That may sound routine, but over a year, it feels like a luxury purchase hiding in plain sight.
Healthcare and benefits reshaped my definition of stability
Healthcare in the US introduced another layer of financial awareness. Even with insurance, you still have to pay premiums, deductibles, co-pays, navigate provider networks, and prepare for potential surprise costs.
I remember debating whether to schedule a specialist appointment because I wasn’t sure how much it would count toward our deductible. In Germany, that decision would have been straightforward. In the US, it required reviewing the provider network, estimating out-of-pocket costs, and preparing for an unexpected bill.
The upside is real, but so is the pressure
I built the life for which I came here. I built a stable academic career. I built a business. California became home.
In Germany, Sundays were true rest days. Life paused by design. In California, Sundays easily became catch-up days. I realized I had to intentionally create what I now call “Serenity Sunday.” It is my way of honoring the German philosophy of working to live while living in an American culture that often feels like living to work.
I don’t think I’d move back to Germany now. When I visit, I enjoy it more like a tourist looking in than a native who feels at home. For me, the cost of living in California is worth it, because what I’ve gained is hard to put on a spreadsheet: independence, a career I couldn’t have built anywhere else, and a family rooted in a place I chose.
The price is real, but so is the payoff.
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