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Earned-wage-access bill package draws sharp split between industry and consumer advocates
Summary
Supporters from EWA providers and business groups told the House Regulatory Reform Committee the HB 5558 package would modernize pay and protect workers; consumer advocates said the bills would exempt harmful short-term advances from lending laws and urged treating the products as loans. Committee members pressed witnesses about fees, tips and repayment mechanics.
The House Regulatory Reform Committee heard extended testimony Wednesday on a package of bills (House Bills 5558–5569) that would create a licensing and consumer-protection framework for earned-wage-access (EWA) services, a set of products that let workers access wages they have already earned before payday.
Lead sponsor Representative Beierlein told the committee the bills would require providers to be licensed by the Michigan Department of Insurance and Financial Services, mandate clear fee disclosures, provide a no-cost option for users and prohibit interest, late fees, collections and credit reporting. "These are not payday loans," the sponsor said, urging members to view EWA as a tool that allows workers to access pay they have already earned.
Industry witnesses emphasized convenience and low…
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