March 21, 2024
Today in Madison, Wisconsin Governor Tony Evers signed into law legislation that creates a new license for earned wage access (EWA) providers in the state. The bill received broad bipartisan support in the Assembly and Senate, and was signed into law today by the Democrat governor.
The bill follows Nevada and Missouri as a growing number of states look to enact bills to create unique licensing systems for EWA providers. Arizona and Montana have also released Attorney General opinions reaffirming EWA is not a payday loan.
The bill creates a new license for EWA providers, which will streamline the onboarding process for Wisconsin employers to readily identify which providers are licensed in the state.
The bill also encodes a number of best practices in the EWA industry to ensure there is never any recourse of any kind; there are no credit impacts or credit worthiness check to participate; no late fees, interest, or penalties; and clear disclosures around any fees will be provided. Providers must also offer a no cost option for consumers – Payactiv already offers five free disbursement options.
This bill recognizes the unique, innovative product of EWA and encodes existing best practices that make EWA a pro-worker, consumer-friendly product.
Providers will be required to apply for licensure by July, and Payactiv expects to become a licensed provider in Wisconsin soon after.
