Committee hears bipartisan plan to license earned-wage access; advocates and consumer groups urge changes

The House Financial Institutions Committee heard House Bill 1125, a proposal to create a licensing framework and consumer protections for earned-wage-access (EWA) services that let workers access wages they have already earned between pay cycles. Committee members and stakeholders described the measure as an attempt to bring regulatory certainty to a product currently offered without a specific state licensing structure.

Representative Chairman Teschka presented the bill and framed the issue as a modern iteration of an old practice: "This bill really just creates the licensing structure for those EWA providers. It also gives the Department of Financial Institutions some clear oversight over the product," he said, summarizing key consumer protections such as prohibitions on late fees and credit reporting and a requirement that at least one cost-free option be available.

Supporters: multiple EWA companies,…