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Earned‑wage access proponents urge regulatory framework as product grows in Massachusetts
Summary
An earned‑wage access company executive told the committee the service helps workers access wages they have already earned and urged policymakers to craft rules that protect consumers while allowing innovation.
Ben Loracco, senior director of government relations for an earned‑wage access (EWA) company, told the committee EWA services let workers access pay they have already earned on demand and urged lawmakers to adopt a regulatory framework that protects consumers while allowing the product to evolve.
Why it matters: Loracco said nearly 25,000 Massachusetts residents used his company’s service last year and that earned‑wage access addresses cash‑flow problems for workers living paycheck to paycheck. He told the committee the technology shifts payroll from a batch model to a more continuous model and argued policy should avoid creating loopholes that permit predatory products.
Loracco noted that bills concerning EWA products have been introduced by Rep. Cusack and Sen. DiDomenico and that the committee may consider them later in the session. He called the regulatory question difficult: how to allow millions of users to access a developing product while ensuring there are no avenues for bad actors to create payday‑loan‑style arrangements.
Provenance: Loracco’s remarks began at transcript block 1943.45 and concluded at 2094.875.
