Senate committee hears testimony on HB 1125 to regulate earned-wage access

The Indiana Senate Committee on Insurance and Financial Institutions heard testimony on House Bill 1125 on a proposal to regulate earned-wage access services, a set of products that let workers access wages they have already earned before payday. Senator Kyle Walker, sponsor of the bill, presented the measure and the committee took testimony; the committee did not vote and Senator Walker said a vote is expected next week.

The bill would create the Earned Wage Access Act and place administration and licensing with the Indiana Department of Financial Institutions (DFI). Under the draft language, providers must clearly disclose any fees, offer at least one no-cost option to access earned wages, refrain from charging interest or late fees, and be nonrecourse—that is, they may not sue consumers, report unpaid balances to credit bureaus, or hire collection agencies. Senator Kyle Walker said the bill "requires they can do so for no fee and no interest," and described other consumer protections in the draft, including limits on app tracking and defaulting to zero-cost options.

Supporters from industry said the bill would bring clarity and guardrails. Andrew Welch, government relations manager at DailyPay, said EWA "is the only option that you can access your own…