APA Participates in Nevada Earned Wage Access Legislative Process

The APA Government Relations Task Force (GRTF) State and Local Topics Subcommittee began working with the Nevada Assembly in January to assist the state in developing legislation to regulate earned wage access (EWA) programs.

Employers are under significant pressure to offer EWA benefits to employees, APA said. These benefits can help employees with financial wellness regardless of their socioeconomic status. However, because there are many models of EWA, each with varying payroll administration impacts and regulatory considerations, creating appropriate legislation is not simple.

The APA explained to legislators that the GRTF serves to assist APA members in understanding the market and the legal framework without identifying with any particular model. “APA’s primary position is to make sure that well-designed, employer-integrated EWA programs are available to employers and employees within the framework of ensuring compliance with wage and hour laws and wage withholding requirements,” APA said.

Previous Proposed Legislation

The Nevada meeting was a follow-up to proposed legislation in 2021 that did not pass. The APA supported the reasonable provisions in the 2021 Nevada bill that would have required providers to obtain a license from the state. If similar legislation is passed, the application process for a license should include financial disclosures, a description of the model, and protections for employees’ personally identifiable information,

APA said. The APA also said it supports provisions that require vendors to create policies and procedures to answer user questions and complaints as well as fully disclose fees associated with using the EWA product.

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Adam Prinzo is the Assistant Manager of Government Relations at APA.