Earned wage access regulation by state: A complete guide

July 30, 2025 4:13 PM

2025 has brought a flurry of state regulation governing the earned wage access industry, with six states inking new laws surrounding on-demand pay in nearly as many months. That doubles the number of states that have issued EWA regulations.

Earned wage access enables workers to access a portion of their earned but unpaid wages ahead of their regular payday. Providers can either offer their service direct-to-consumer, or integrate with payroll companies for direct access to time and attendance metrics.

Every state has guidance governing fees, disclosures and tips, and many follow similar general guidelines. But small, yet critical distinctions are emerging with each new state that passes regulations.

Here are key requirements from each of the 12 states that have EWA regulations.

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Arkansas

Arkansas became the sixth state to regulate earned wage access when Arkansas Gov. Sarah Huckabee Sanders signed the act into law on March 20, 2025.

Effective Date: Aug. 4, 2025.

Credit Classification: Classified as a finance product, but providers are not deemed to be engaged in lending, money transmission or debt collection. All advances are nonrecourse.

Licensing Requirements: None

Surety Bond Requirement: None

Fee Disclosures: All fees must be presented prior to the agreement.

No-Cost Option: Must provide at least one no-cost option with clear instructions on how to select it.

Tip Regulation: Must be disclosed as voluntary, and must default to $0. Tips cannot be a requirement for services rendered.

Repayment Restrictions: Cannot accept repayment via credit card or charge late fees or interest.

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Connecticut

Connecticut has been a battleground for earned wage access since 2023, when the state's regulator recategorized EWA as a small-dollar loan and subject to the state's usury cap laws. Those regulations effectively ended EWA service in January 2024.

Lawmakers in the state pushed forward a bill in summer 2025 to carve out specific requirements for EWA, although they remain some of the most restrictive in the country. Notably, providers are required to verify earned income using payroll or other electronic data, and will be responsible for preventing EWA advance stacking.

Effective Date: Oct. 1, 2025.

Credit Classification: Designated as a "small loan," but with carve outs that prescribe different finance charge requirements separate from other small loans. Providers cannot engage in debt collection. Advances are capped at $750 and can only be provided once per pay period if the provider does not allow users to access at least 75% of their wages.

Licensing: Must be licensed as a small loan lender through the Nationwide Multistate Licensing System.

Surety Bond Requirement: None

Fee Limits and Disclosures: Total finance charge cannot exceed $4 per advance or $30 per month.

No-Cost Option: At least one option must be clearly offered.

Tip Regulation: Must default to $0, and be clearly marked as voluntary.

Repayment Restrictions: Cannot accept repayment via credit, or charge late fees or any other fees or deferred interest. Providers cannot request repayment prior to the customer's next scheduled pay period. Repayment is generally a single installment on the next paycheck date, but can be rescheduled to up to three installments at the borrower's requests.

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Indiana

Indiana was the 9th state to have a law covering EWA, and finalized its regulations around the same time as Maryland.

Effective Date: Jan. 1, 2026

Credit Classification: Not considered a loan, money transmission or other credit. Fees and tips not considered a finance charge. All advances are nonrecourse.

Licensing: Must be licensed with the director of the Department of Financial Institutions, and submit quarterly composite reports. Providers must maintain records for two years after a transaction is initiated.

Surety Bond Requirement: Either $100,000, or the amount equal to the licensee's average daily provision of proceeds to Indiana-based customers based on the most recent quarter, up to a maximum of $250,000.

Fee Disclosures: Must be fully and clearly disclosed before entering into an agreement.

No-Cost Option: One no-cost option must be offered and displayed equally as other options. If no-cost option is chosen, delivery must be initiated within one business day of the request.

Tip Regulation: Must default to $0, and be clearly marked as voluntary.

Repayment Restrictions: Cannot accept repayment via credit card or charge late fees, deferral fees, or interest. Cannot report to the credit reporting agencies.

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Kansas

Kansas was the fourth state to enact an EWA law in April 2024 when Gov. Laura Kelly (D) signed the bill, following Missouri, Nevada and Wisconsin.

Effective Date: July 1, 2024.

Credit Classification: Not considered a loan or money transmission and not subject to the state's uniform commercial code. Fees and tips are not considered finance charges. All advances are nonrecourse.

Licensing: Providers must be registered with the Office of the State Bank Commissioner. Renewed annually. Providers must also submit annual reports to the regulator outlining the business done in the state.

Surety Bond Requirement: None

Fee Disclosures: All fees must be clearly disclosed.

No-Cost Option: Must offer at least one option and clearly indicate how to select it.

Tip Regulation: Must default to $0 and be clearly marked as optional.

Repayment Restrictions: Cannot pay with credit, and providers cannot charge late fees or interest.

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Louisiana

Louisiana became the 11th state to enact earned wage access regulation in June, falling in line with many of its peers in its fee disclosure, tip regulation and no-cost option requirements. But the state forgoed a licensing requirement, opting instead to require EWA providers to report annually.

Effective Date: Aug. 1, 2025

Credit Classification: Not considered credit, money transmission or debt collection. Nonrecourse.

Licensing: None, but providers who charge fees in the state must submit annual reports to the Office of Financial Institutions, outlining gross revenue, total transactions, the number of unique customers, total dollar amount of fees and tips, and the total number and nature of consumer complaints along with the resolution status of each complaint.

Reports are due by March, and will be made available to the public in aggregate by July 1 each year. Louisiana's attorney general will be responsible for enforcing the provisions outlined in the law.

Surety Bond Requirement: None

Fee Disclosures: All fees must be disclosed prior to providing EWA services.

No-Cost Option: Must provide at least one no-cost option with clear instructions on how to select it.

Tip Regulation: Must be clearly disclosed as voluntary and default to $0. Service cannot be contingent on tips.

Repayment Restrictions: Customers cannot repay with credit. Cannot charge interest, late fees or other penalties.

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Maryland

Maryland was the 10th state to enact an EWA legislation on May 25, and one of two states that categorize EWA as a credit product. The bill became law without Gov. Wes Moore's (D) signature.

Gov. Moore allowed the bill to become law, but expressed concerns in a letter to Maryland's Speaker of the House of Delegate Adrienne Jones over tipping protocols, caps on advances and the fact that the legislation creates a new class of lenders with "broad exemptions from existing commercial law focused on consumer protection."

Effective Date: Oct. 1, 2025

Credit Classification: Defined as a loan and subject to the state's Consumer Loan Law. Not considered money transmission, and are nonrecourse.

Licensing: Must be licensed under the Consumer Loan Law and are overseen by the Office of Financial Regulation. Providers must also submit an annual report to the regulator and include "any information considered necessary" for the commissioner to assess the size and scope of EWA in Maryland. The first report is due July 1, 2026.

Surety Bond Requirement: None.

Fee Disclosures: Fees must be clearly disclosed, and are capped at $5.00 for advances up to $75 and $7.50 for advances more than $75.

No-Cost Option: One no-cost option must be provided and clearly marked.

Tip Regulation: Default tip must be set at $0, and clearly marked as voluntary. Tips received must also be used to calculate the total effective interest rate on the loan, and must be returned if the tip causes the effective interest rate to exceed legal limits. Under the Maryland Consumer Loan Law, loans with a principal balance of $500 or less can have a maximum interest rate of 2.75% per month, or an annual interest rate of 33%.

Repayment Restrictions: Despite being considered a loan, EWA providers are not allowed to charge late fees, assess interest or charge other fees for nonpayment. Providers are also not allowed to compel repayment or report nonpayment to credit reporting agencies. Providers are also not allowed to use a consumer's credit report as a condition for providing EWA services.

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Missouri

Missouri was the second state to regulate on-demand pay, and notably does not require EWA providers to offer a no-cost option to consumers or prohibit repayment with a credit card.

Effective Date: Aug. 28, 2023

Credit Classification: EWA is not considered a loan or money transmission and providers are not considered creditors, lenders or money transmitters. Fees and tips are not considered finance charges or interest. Providers may not charge interest, and cannot collect on unpaid balances.

Licensing: Must register with the Missouri Division of Finance once per year, and pay an annual $1,000 registration fee by July 1 each year. The statute allows for the regulator to increase registration requirements to twice a year, but limits registration fees to once per year.

Surety Bond Requirements: None.

Fee Disclosures: Fees charged must be clearly outlined.

No-Cost Option: A no-cost option is not required.

Tip Regulation: Providers must disclose that tips are voluntary and may be $0.

Repayment Restrictions: There are no repayment restrictions.

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Nevada

Nevada was the bellwether for state licensing requirements in the earned wage access industry, and has robust annual reporting requirements.

Effective Date: July 1, 2024

Credit Classification: On-demand pay is not considered credit, a loan or money transmission. Fees and tips are not considered finance charges.

Licensing: Providers must be registered with the Commissioner of Financial Institutions. Providers may also be required to provide information on key executives in the company.

EWA companies are also required to submit an annual report on or before April 15 each year, and include information on consumer complaints and their resolution, total amount of charges paid by EWA users, the number of users who paid a subscription fee but did not receive EWA services, and the total number of users that received 12 or more EWA advances.

Surety Bond Requirements: $35,000

Fee Disclosures: All fees must be clearly disclosed.

No-Cost Option: One no-cost option is required, and must be clearly available.

Tip Regulation: Tips must be marked as optional, and the option to select $0 must be available.

Repayment Restrictions: There are no restrictions on repayment with credit cards. Providers cannot charge fees or interest for late payments, and cannot collect on unpaid balances.

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South Carolina

South Carolina was the fifth state overall and the third in 2024 to enact a law regulating EWA.

Effective Date: Nov. 21, 2024

Credit Classification: EWA is not considered a loan or money transmission. Fees and tips are not considered finance charges. All transactions are nonrecourse.

Licensing: Must register with the South Carolina Department of Consumer Affairs. Registration costs $1,000, and expires on June 30 of each year. The renewal period is May 1 to June 30.

Surety Bond Requirements: $30,000

Fee Disclosures: Fees must be clearly disclosed.

No-Cost Option: Must be provided and easily accessible.

Tip Regulation: Providers must clearly mark tips as voluntary and tell customers that they may be $0.

Repayment Restrictions: Customers may not repay earned wage advances with a credit card. If the provider is going to collect repayment directly from payroll deductions, it must receive consent from the consumer separately. Providers may not charge fees as a result of late or missed payment.

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Utah

Utah was the seventh state to enact a law that would oversee the EWA industry. Utah is widely regarded as favorable to fintech and innovation, and is one of the seven states to offer industrial loan charters.

Effective Date: May 7, 2025

Credit Classification: Wages advances are not considered a loan or money transmission. Fees and tips are not considered finance charges and providers cannot collect unpaid advances.

Licensing: Providers must register with the Utah Division of Consumer Protection. Licensing is renewed annually.

Surety Bond Requirements: None

Fee Disclosures: Fees and other information, such as the anticipated timeline to receive the funds, the requested amount, the amount to receive, the receiving account and the withdrawal date must be disclosed when the customer requests funds.

No-Cost Option: Providers must provide a no-cost option that is clearly marked.

Tip Regulation: Tips must be marked as voluntary.

Repayment Restrictions: Providers cannot accept repayment with credit cards, and they cannot charge fees or interest for late payment or nonpayment. They also cannot collect on unpaid balances.

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Wisconsin

Another early mover, Wisconsin was the third state to enact regulation on EWA back in 2024.

Effective Date: Sept. 1, 2024

Credit Classification: While EWA providers are regulated by the state's Division of Banking, EWA products are not specifically defined as a loan.

Licensing: Providers are required to register with the Division of Banking. Licenses, must be renewed annually and providers must submit an annual report on or before July 1 of each year.

Surety Bond Requirements: $25,000

Fee Disclosures: All fees must be clearly disclosed prior to funds being sent.

No-Cost Option: A no-cost option must be clearly detailed.

Tip Regulation: Tips must be clearly marked as voluntary and include a $0 option.

Repayment Restrictions: Repayment with credit card is prohibited. Providers also cannot charge interest or fees for late payments or collect on missed payments.

California DFPI - California Department of Financial Protection and Innovation Californian department DFPI

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Special Mention: California

California does not have a specific law that regulates the EWA industry, but its regulator, the Department of Financial Protection and Innovation, does require providers to register and submit usage data.

As of Feb. 15, 2025, all providers were required to have registered with the state. Wage advances are considered loans in the state, complete with disclosure requirements and subject to interest rate caps.