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California Bill Regulating On-Demand Wage Payment Moving Forward

BY: APA Staff | 07/05/19

First-of-its-kind state legislation that would regulate on-demand pay continues to gain steam in the California Legislature (S.B. 472). The state Senate has already passed the bill and it has been referred to the Assembly Committees on Banking and Finance and Judiciary. On July 8, the Assembly Committee on Banking and Finance is scheduled to hold a hearing on S.B. 472. The Assembly would still need to pass the bill and the governor would need to sign it before it becomes law.

Most of the bill’s provisions would regulate providers of on-demand pay, although certain requirements would apply to employers. On-demand pay gives employees immediate access to a portion of the pay they have already earned during a pay period, in advance of regular payroll. Because the employee has already earned the income, the on-demand payments would not be considered credit transactions under California law.

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