To Establish The Earned Wage Access Services Act.
HB1517 creates the Arkansas Earned Wage Access Services Act and adds a new chapter to Title 23, Chapter 52, governing providers that give consumers access to wages or other income they have already earned but have not yet been paid. The bill defines key terms such as consumer-directed and employer-integrated earned wage access services, earned but unpaid income, provider, employer, proceeds, fees, and outstanding proceeds. It also clarifies that certain payroll-related service providers and employers offering early access to pay directly are not treated as providers under the act.
The bill sets out a regulatory framework for earned wage access services. Providers must disclose fees and consumer rights, offer at least one no-cost option if they charge for access, allow cancellation without a cancellation fee, notify consumers of material changes, and comply with privacy and information security laws. The bill also regulates voluntary tips and donations, requires clear disclosure that they are optional, and prohibits tying service availability to tipping. It bars providers from using credit scores to determine eligibility, from charging late fees or interest, from collecting by lawsuit or debt buyer, and from accepting repayment by credit card or charge card.
HB1517 changes Arkansas consumer-protection law by expressly addressing earned wage access products and, when providers comply with the statute, shielding them from being treated as engaging in lending, money transmission, debt collection, or unlawful assignment of earned income under state law. It also imposes specific disclosure, repayment, and consumer-protection requirements on providers, including reimbursement of overdraft or nonsufficient funds fees caused by incorrect or premature withdrawal attempts. Banks, savings and loan associations, and credit unions are excluded from the chapter’s coverage.
The available voting history suggests broad bipartisan support for the bill. It passed the House 93-3 on third reading and the Senate 31-0 on third reading, indicating little formal opposition. No committee transcript was provided, so the record reflects strong legislative approval rather than detailed debate.
The main policy issues embedded in the bill concern whether earned wage access should be treated as a form of lending or debt collection, and how to regulate fees and voluntary tips without restricting access to short-term liquidity. The bill addresses those concerns by exempting compliant providers from certain financial-services classifications while also limiting collection practices, banning credit-score underwriting, and requiring a free option. Potential tension remains around consumer fees, tip solicitation, and automatic repayment from bank accounts, but the vote totals suggest these issues did not generate significant opposition in the legislature.