Vermont committee reviews bill to license earned-wage access providers

The Vermont House Committee on Commerce and Economic Development on Jan. 30 heard a detailed walkthrough of H.99, a bill that would create a state licensing regime and consumer protections for earned-wage access (EWA) services in Vermont.

The bill would require any person offering earned-wage access services in Vermont to obtain a license from the Department of Financial Regulation and would set disclosure, data-privacy and collection rules for licensed providers. Legislative counsel Rick Sabol told the committee, “So H.99 is, a bill that would regulate earned wage access services in Vermont.”

H.99 defines key terms, including “earned wage access services,” “provider,” and “obliger” (typically an employer). The draft requires licensees to offer a basic level of service that provides a reasonable option for consumers to receive proceeds at no cost. Sabol summarized that requirement: “A licensee shall make available to each consumer a basic level of service that provides a reasonable option to, receive proceeds at no cost to the consumer.” The bill also allows optional paid services such as expedited delivery or membership bundles, but makes the no-cost basic service the default.

The bill would bar certain…