Arkansas: Earned Wage Access Services Act
|
APPLIES TO All Employers with Employees in AR |
EFFECTIVE As Indicated |
QUESTIONS? Contact HR On-Call |
Quick Look
|
Discussion:
HB 1517 enacts Arkansas’s Earned Wage Access Services Act (EWA) and goes into effect 90 days after the state legislature adjourns. The EWA allows employees to access their wages as they are earned through consumer-directed, earned wage access services. The services are defined as “the business of delivering to a consumer access to earned but unpaid income based on the consumer’s representation and the provider’s reasonable determination of the consumer’s earned but unpaid income.”
Earned but unpaid income is “salary, wages, compensation, or other income that a consumer or an employer has represented, and that a provider has reasonably determined, has been earned or has accrued to the benefit of the consumer in exchange for the consumer’s provision of services to an employer or on behalf of an employer.”
While EWA service providers are not required to be registered or licensed in the state, the EWA does require such providers to:
- Comply with the requirements of the law;
- Develop and implement policies and procedures to respond to consumer questions;
- Address consumer complaints in an expedited manner;
- Offer consumers at least one reasonable option to obtain proceeds at no cost whenever an option is offered for a fee;
- Inform consumers of their rights and disclose all fees associated with the services;
- Inform consumers of material changes to the terms and conditions of the services prior to their change;
- Allow cancellation of use of the services at any time without a fee;
- Comply with all applicable privacy and information security laws; and
- Provide proceeds by any mutually agreed upon method.
Additionally, providers cannot share a portion of any fees, tips, gratuities, or other donations received from a consumer with the employer, require a credit report or credit score to determine a consumer’s eligibility for services, accept payment by means of a credit card, charge consumers fees or other penalties for failure to pay outstanding proceeds, or compel a consumer to pay through prohibited means, sell the outstanding proceeds to a debt buyer or collector, mislead or deceive a consumer, or advertise any false statements about the services.
Arkansas now joins a limited number of states that regulate EWA services. However, legislation is pending in several states demonstrating a push to regulate these services more broadly.
Action Items
- Review the bill here.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase