On July 8, Governor Ned Lamont signed SB 1396, An Act Concerning Earned But Unpaid Wage or Salary Income Advances, into law. The bill restores full earned wage access (EWA) offerings for Payactiv’s product in the state by the fall.
The new law reverses prior guidance issued by the Connecticut Department of Banking in September 2023, which significantly limited EWA offerings in the state. In the nearly two years since, a broad group of stakeholders – including legislative leaders, the Department of Banking, industry stakeholders, and consumer advocates – collaborated to craft a balanced regulatory framework that protects consumers while also preserving access to EWA.
SB 1396 strengthens existing law by introducing specific consumer protections for EWA users, including clear fee caps tailored to the product. While some updates to EWA offerings will be required in the state, Payactiv is fully prepared to comply with these requirements. No significant changes will be needed for our employer partners.
The new law takes effect on October 1, and Payactiv expects to be licensed and operational in the state shortly thereafter, with our full suite of services once again available to Connecticut workers.
We commend Governor Ned Lamont for his leadership in championing access to financial tools that support working families. We also extend our deep appreciation to Senator Pat Miller, Representative Jason Doucette, and the Connecticut Department of Banking for their dedication and collaborative work on this legislation.
