Earned wage access allows workers to access earned but unpaid income before payday
Defines providers to include a person engaged in business of offering earned wage access, but not employer that advances portion of earned wages directly to employees.
Providers to implement customer service procedures to respond to customer queries.
Must disclose all fees and inform consumers of rights before entering into a contract.
Required to disclose that tip, gratuity, or other donation from a consumer is voluntary.
Must offer at least 1 reasonable option to obtain proceeds at no cost to the consumer.
Consumers allowed to cancel the use of the EWA services without a cancellation fee.
Reimburse consumers for overdraft/nonsufficient funds fees caused provider’s errors.
Prohibits providers from sharing fees with employers, using credit reports, accepting credit cards, charging penalties, compelling payment, or from misleading consumers.
Legislative History
On Feb. 18, 2025, bill introduced in House; on Mar. 10, 2025, bill was passed in House.
On Mar. 10, 2025, bill delivered to Senate; on Mar. 17, 2025, bill passed in Senate.
On Mar. 20, 2025, bill was approved by governor, and HB 1517 became Act 347.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
CNSM; Corp
Reference
PR, Act 347, Bill, HB1517, 3/20/2025; Citation: ARK INS 23-2-52;
