Earned Wage Access Consumer Protection Act
Sponsored By: Representative Steil, Bryan [R-WI-1]
In Committee
Summary
Federal consumer protections for Earned Wage Access (EWA) would set a national rulebook that treats EWA as non‑credit and requires verification, clear disclosures, and a no‑cost transfer option when fees are offered.
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- Workers and families: Providers would have to verify that advances do not exceed wages earned in a pay period, disclose limits and fees, and offer a free transfer option that occurs within one business day when a fee option exists.
- EWA providers and employers: The bill would exclude EWA from creditor status under Truth in Lending rules, designate providers as financial institutions for privacy law purposes, ban sharing fees with employers, and bar certain collection practices.
- States and oversight: The measure would preserve state consumer‑protection laws that do not conflict while stopping states from recharacterizing EWA as credit, and it would direct the Bureau of Consumer Financial Protection to issue implementing rules within 180 days.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Protections from overcharges and collections
If enacted, providers would check before each transfer that total advances do not exceed wages earned that pay period. Before the first advance each pay period, you would attest you did not ask another provider for the same wages. If providers charge fees, they must also offer the same amount free. The free transfer would start within one business day of your election. Providers could not share fees with your employer, sue you, use debt collectors, or report EWA activity to credit bureaus. If a provider's collection causes your bank to charge an overdraft or NSF fee, the provider would reimburse it. Providers must keep complaint procedures for wrong or unauthorized transfers and fees.
Agency must write rules in 180 days
If enacted, the Consumer Financial Protection Bureau would have to issue rules to implement the Act within 180 days of enactment. Those rules would set standards and enforcement for earned wage access providers.
Definitions, privacy, and state limits
If enacted, the bill would define core terms like earned wages, provider, fee, and tip and list some excluded actors. It would say earned wage access is not federal "credit" under Truth in Lending. EWA providers would be treated as financial institutions for privacy law and subject to Gramm-Leach-Bliley subtitle A rules. Providers could share transaction dates and amounts with an employer only when they have a contract. The bill would preempt state or local laws that reclassify compliant EWA services as credit or loans.
Cancel recurring service and anti-discrimination
If enacted, you would be able to stop recurring EWA services after giving notice. Providers could not charge you a cancellation fee. Providers could not deny EWA services because of your race, color, religion, national origin, sex (including pregnancy), marital status, or age.
Clear fees and tipping rules
If enacted, providers would have to tell you before you sign up about access limits, all fees, and how to get wages without paying. Before each transfer, providers would show the account (if any), the amount, total fees, the tips you chose, and when you get the money. Providers would have to say tips are voluntary and not required to get the service. Providers could not set a default tip above $0 or force extra steps if you pick $0.
Sponsors & CoSponsors
Sponsor
Steil, Bryan [R-WI-1]
WI • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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