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APA Supports States’ Earned Wage Access Bills

BY: Alice P. Jacobsohn, Esq. | 04/12/21

The APA Government Relations Task Force Subcommittee on State and Local Topics supported bills in Nevada and South Carolina that would enable employers to offer earned wage access (EWA) programs to employees.

Nevada Provisions

The APA offered some examples to explain its support for S.B. 198. These include provisions requiring providers to obtain a state license. The license application must contain financial disclosures, a description of how the EWA model functions, and the measures the provider will take to protect employees’ personally identifiable information. The bill would require EWA providers to create policies and procedures to respond to employee questions and complaints as well as fully disclose fees associated with participation. In particular, the APA supported the Nevada legislature’s recognition that employer-integrated EWA programs are different from payday loans.

South Carolina Provisions

The APA’s support for S.B. 532 is similar to the Nevada bill in that the South Carolina bill offers employer and employee protections with flexibility for different EWA models. For example, S.B. 532 would require that early payments be based on payroll data employers give to EWA providers. In addition, provider fees must be communicated to employees along with an explanation that they can receive full wages without a fee on their regularly scheduled payday.

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