Earned Wage Access Consumer Protection Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Earned Wage Access Consumer Protection Act aims to regulate how companies offer and provide ‘earned wage access’ services, which allow workers to receive their paychecks early. The bill requires clear disclosures about fees, limits on access to wages, and how tips are handled. It also establishes rules around cancellations, dispute resolution, and prohibits certain practices like suing workers to recover wages. The Act seeks to protect consumers from potentially exploitative practices within this growing industry.
Key provisions
- Requires earned wage access providers to offer a no-cost option alongside a fee-based option.
- Mandates detailed disclosures to consumers before agreeing to services, including fees, limits on access, and tip policies.
- Prohibits earned wage access providers from suing workers to recover disbursed wages.
- Establishes a dispute resolution process for consumer complaints.
- Prevents providers from sharing fees or tips with employers.
- Restricts providers from charging late fees or penalties for missed payments.
- Requires reimbursement for overdraft fees incurred due to wage disbursements.
- Prohibits discrimination based on protected characteristics when offering earned wage access services.
Who is affected
- Workers
- Earned Wage Access Providers
- Employers
- Financial Institutions
- Payroll Service Vendors
Bill text
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1 on record
Primary sponsor
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