The Latest Venture from DailyPay Founders: Salt Labs Revolutionizes Hourly Workers' Compensation

　　Reinventing Total Compensation for Hourly Workers

　　Salt Labs, a New York City-based loyalty payments company, has emerged as the latest startup from the founders of DailyPay. The company has secured $10 million in pre-seed funding, led by Fin Capital, a fintech-focused venture capital firm. Other investors include Anthem Venture Partners and DO$H, a cash-back app.

　　Salt Labs aims to transform the compensation structure for hourly workers, who constitute a significant portion of the U.S. workforce. According to the Bureau of Labor Statistics, over 78 million hourly workers make up the majority of wage earners in the country.

　　These hourly employees, including restaurant, grocery store, and construction workers, often lack the access to perks typically offered to salaried employees. Jason Lee, CEO and co-founder of Salt Labs, recognizes this disparity and seeks to address it.

　　Introducing the Salt App: A Revolutionary Rewards System

　　The Salt app aims to revolutionize how hourly workers earn rewards. Lee draws inspiration from popular loyalty programs like airline frequent flier and Starbucks reward programs.

　　Unlike traditional loyalty programs, Salt rewards never expire, and users can transfer them to friends and family, even if they don't work for the same company.

　　Initially, users can redeem their Salt rewards for goods and experiences, such as travel and education, as well as digital assets like NFTs. Lee envisions adding properties and features that will enhance the asset-like nature of Salt, moving it beyond its current points-based structure.

　　In the future, workers could potentially earn more Salt by demonstrating desirable behaviors, such as taking unpopular shifts or demonstrating long-term loyalty to their employer. Lee also envisions the possibility of trading, financing, or selling Salt for cash.

　　Capturing the Long-Term Value Created by Front-Line Workers

　　Lee believes that front-line workers create significant value that is not adequately captured in their paychecks. Salt Labs aims to establish a system where workers can own the long-term value they generate.

　　Currently, Salt Labs employs 10 people and is testing the app with approximately 100 users. The company plans to launch more broadly in the coming month.

　　The DailyPay Legacy and the New Venture

　　Salt Labs is the latest venture from Lee and Rob Law, the co-founders of DailyPay. DailyPay provides software that allows employees to access their wages in real time. The company has raised over $1 billion, including $175 million in equity capital and the remainder through a revolving credit facility and a term loan.

　　In 2022, Chime, a financial services app, offered to acquire DailyPay for $1.6 billion, later increasing the offer to $2 billion. However, DailyPay's investors rejected the proposal, hoping for a higher bid in the future.

　　Lee and Law left DailyPay in mid-2022, and Kevin Coop, former president of North America at Dun Bradstreet, joined as CEO.

　　Addressing the Needs of Low- and Middle-Income Wage Earners

　　Salt Labs and DailyPay target the same group: low- and middle-income wage earners. Lee, the son of South Korean immigrants, recognizes that not enough technology has been developed for this sector of the economy. He notes that a vast majority of immigrants are hourly employees working in delis and restaurants, similar to his family members in the U.S.

　　Lee's personal experiences and extensive research have given him a deep understanding of the financial needs and products of low- and middle-income consumers. He believes that despite comprising a majority of the population, only a handful of apps have been developed specifically for this group.

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