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Committee advances bill to authorize earned-wage access with disclosure and fee limits
Summary
A committee advanced House Bill 241 to allow earned-wage access products to operate within state law as loans with defined disclosure rules, a stated convenience fee framework (up to $5) and limits on advances.
A legislative committee advanced House Bill 241, described during the hearing as LC 443,072 S, to clarify how employers and third-party providers can offer earned-wage access — allowing workers to obtain wages earned before payday.
A presenter told the panel the bill “allows the worker to get their money as they earn it, not having to wait till payday.” Committee discussion emphasized the bill does not create a new consumer product but seeks to rework existing code to provide transparency and a framework for providers to operate under state law.
Testimony from Nick Stowell of Chime Financial clarified product details: providers may offer an immediate cash transfer for a convenience fee of up to $5, or the service can be provided free if a worker accepts delivery within 24 hours. Stowell said providers may offer up to 50 percent of a payroll period’s expected earnings or a maximum of $500 under the bill’s design. He described two delivery models: direct-to-employer (tied to payroll) and direct-to-consumer (based on deposit history).
Committee members asked whether the fee language creates a strict $5 cap or an alternative “whichever is greater” metric; witnesses said the bill clarifies existing code and that companies already charging more could justify higher fees under separate provisions. Members also confirmed the product would be supervised by the state banking department.
A motion to advance the bill passed unanimously in committee. No amendments were adopted and no committee-recorded opposition was noted.
