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APA Raises Concerns with Utah Earned Wage Access Services Act

BY: Alice P. Jacobsohn, Esq. | 03/05/21

The APA Government Relations Task Force raised concerns about a Utah bill, H.B. 370, the Earned Wage Access Services Act, because the bill did not fully recognize the role of payroll professionals and their employers in the decision-making process, nor did the bill recognize the variety of available earned wage access (EWA) models.

The APA urged the Utah House of Representatives to study EWA programs further before voting on the legislation. Following receipt of APA’s letter, the bill sponsor introduced a revised version of the bill that addressed some of APA’s concerns.

The APA said it supports legislation to enable employers to offer EWA programs to employees as a means for financial wellness that is an inexpensive and efficient alternative to payday lending and bank overdraft fees. Protections for employers and employees should be reasonable to ensure EWA options are available and to prevent predatory practices. The proposed legislation offered protections for EWA providers but not for employers and employees.

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Alice P. Jacobsohn, Esq., is Director of Government Relations for the APA.