Committee hears bill to regulate earned-wage access; advocates urge data and fee limits

House Bill 1125, a measure to create a regulatory framework for earned-wage-access (EWA) providers, drew a mix of industry support and consumer-advocate caution in the House Financial Institutions Committee. Committee members heard approximately three hours of testimony and then elected to hold the bill for further amendments and review.

The bill would license EWA providers, require consumer disclosures and a no-cost transfer option, prohibit credit checks and credit reporting for EWA use, and bar recourse and interest or late fees. Proponents told the committee the product is distinct from small-dollar lending because it gives workers access to wages they have already earned, is typically fee-based rather than interest-based, and often offers a free ACH transfer. Earnin, DailyPay and other providers said EWA reduces late fees and overdrafts and can improve employee retention for participating employers.

Ben LaRocco of Earnin and Andrew Welch of DailyPay both testified…