Earned Wage Access Consumer Protection Act

Key Points

• This bill creates the first national rules for earned wage access (EWA) apps, the services that let workers get paid before their scheduled payday. Any company offering a paid version must also let workers access the same amount of earned wages for free.
• Companies must clearly disclose all fees, explain that tips are voluntary, and provide a running tally of fees and tips paid during the current pay period and calendar year. Tips cannot be misrepresented as benefiting specific people unless that is true.
• EWA providers are banned from suing customers, using debt collectors, selling debts, or reporting to credit bureaus. If a provider's early withdrawal attempt triggers an overdraft fee at a worker's bank, the provider must reimburse the worker for that fee.
• The bill declares that EWA services are not loans, credit, or debt under federal law, so they would not be subject to lending regulations like the Truth in Lending Act. It also preempts state laws that try to classify these services as loans or substantially restrict them.
• The Consumer Financial Protection Bureau (CFPB) must issue rules to carry out this law within 180 days. EWA providers would also be treated as financial institutions for data privacy purposes under the Gramm-Leach-Bliley Act.