For people of lower socioeconomic status (SES), structural barriers can make sustained employment more difficult. New research (Mills et al., 2026) examines one such barrier: court-ordered fines. When unpaid, these fines can trigger escalating penalties, such as driver’s license suspension and even incarceration. This may cause employment loss and ultimately generate broader economic consequences.
THE RESEARCH STUDY
The researchers conducted two studies of Alabama residents by canvassing food banks, shelters, and courthouses. In their first study, they interviewed 21 lower SES people dealing with court-imposed fines. Two main themes emerged: people facing these fines experienced a loss of social mobility (e.g., inability to get to work, inability to pay reinstatement fees) and decreased well-being (e.g., by turning to illegal activity to pay off the debt).
In a larger survey of over 800 Alabama residents, license suspension was linked to increased unemployment, partly by restricting transportation access. Unpaid fines were associated with incarceration and being denied a job. Among those who lost jobs due to unpaid fines, more than two-thirds reported turning to illegal activities or the “shadow economy” to make ends meet (e.g., theft). The effects of unpaid fines also differed by race, with Black respondents reporting higher rates of job denial, housing denial, and financial strain compared to White respondents.
Lastly, using state-level data from New Jersey and North Carolina, the researchers modeled the broader financial effects of license suspension for unpaid fines. They estimated that state tax revenue was ultimately lost due to decreased fuel consumption and employment. This led to an average net loss of about $800 per suspended driver, even after fines were collected.
PRACTICAL AND POLICY IMPLICATIONS
For organizations, the authors suggest offering programs to help employees pay fines before license suspension occurs. This may include grants, short-term financial assistance, or external fundraising. Such support may help prevent turnover and reduce harmful coping behavior, such as stealing from the employer. At the policy level, the authors recommend reconsidering license suspension for less serious offenses. Instead, they could implement ability-to-pay assessments or income-contingent payment plans to prevent cascading harm.
Mills, M. J., Dolliver, M. J., Matthews, R. A., Nelson, L., Jones, P. A., & White, M. L. (2026). Roadblocks: Evaluating the impact of fines-related driver’s license suspension on work-related outcomes for socioeconomically disadvantaged workers. Journal of Applied Psychology. Advance online publication.
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