The bill aims to regulate earned-wage access services to ensure consumer protection and financial stability for employees accessing their earned wages before payday.
Key Provisions:
Licensing Requirement:
The bill mandates that, starting January 1, 2026, entities providing earned-wage access services must obtain a license.
Definition of Earned-Wage Access Services:
These services are defined as those that:
Deliver consumer access to earned but unpaid income.
Provide access based on employment, income, or attendance data obtained directly or indirectly from an employer or the employer's payroll service provider.
Summary
The bill prohibits an entity from providing earned-wage access
services without a license on and after January 1, 2026. Earned-wage access services are services that:
•
Deliver consumer access to earned but unpaid income; and
•
Provide consumer access to earned but unpaid income that is based on employment, income, or attendance data obtained directly or indirectly from an employer or an employer's payroll service provider.
