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S 1119

BANKING – Adds to existing law to establish the Idaho Earned Wage Access Services Act.

68th Legislature, 1st Regular Session (2025)

Idaho will require earned wage access providers to be licensed and regulated, with oversight, reporting, and compliance rules to protect workers and clarify service status.

Reported Printed; referred to Commerce & Human Resources
#acts #banksandfinancialinstitutions #consumers #employersandemployees #licensesandpermits #wages
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Bill Summary · S 1119

Summary — S 1119: Idaho Earned Wage Access Services Act

Purpose

S 1119 would create a regulatory framework for companies that provide earned wage access (EWA) services in Idaho. Its stated intent is to require licensing, oversight, and reporting of providers who deliver workers’ earned-but-unpaid wages to consumers before normal payroll dates, while clarifying the legal characterization of those services.

Key provisions

  • Establishes a new Chapter 38 in Title 26 of the Idaho Code, titled the "Idaho Earned Wage Access Services Act."
  • Definitions: defines core terms including “earned but unpaid income,” “consumer-directed wage access services,” “employer-integrated wage access services,” “provider,” “consumer,” “employer,” “proceeds,” “fee,” and “outstanding proceeds.”
  • License requirement: requires anyone acting as an EWA provider to obtain a license from the Idaho Department of Finance before operating in the state (single license may cover multiple physical locations and online activity).
  • Exemptions: banks, credit unions, savings & loan associations, savings banks, mutual banks are excluded from the chapter.
  • Legal characterization: explicitly states that EWA services are not (a) loans or credit, (b) money transmission, or (c) payroll deductions in violation of payroll laws. Fees charged under the Act are not interest or finance charges.
  • Preemption: where conflicts exist between this chapter and the Idaho credit code or other law, this chapter prevails.
  • Licensing mechanics (outlined): application, qualifications, renewals, reinstatements, reporting (annual and extraordinary), notice of control changes, maintenance and confidentiality of records, and director powers (enforcement, examination, hearings).
  • Enforcement and remedies: includes authority for suspension/revocation of licenses, civil penalties, consent to jurisdiction, and other enforcement mechanisms.
  • Provider requirements and prohibitions: the bill references specific provider obligations and prohibited practices (text is truncated in the provided materials).
  • Emergency clause: bill declares an emergency, indicating immediate effect upon enactment.

Who is affected

  • Primary: EWA providers (startups and established firms offering consumer-directed or employer-integrated early-pay services).
  • Secondary: Idaho consumers/workers who use such services; employers and payroll service providers who integrate EWA into payroll systems; the Idaho Department of Finance (regulatory oversight).
  • Excluded: federally- or state-chartered depository institutions (banks, credit unions, etc.).

Fiscal and practical impact

  • Fiscal note indicates no additional personnel or General Fund cost. The Department of Finance may receive a minimal net increase in revenue from licensing fees.
  • Providers will incur compliance costs (licensing, reporting, recordkeeping); consumers gain regulatory protections and clearer legal treatment of EWA transactions.

Legislative status and sponsors

  • Introduced: March 25, 2025.
  • Sponsor (primary): Senator Jim Banks.
  • Procedural notes in files indicate the bill has been read and referred to committee, reported printed, and hearings were scheduled (including November 25, 2025). Companion/related measures noted: HR 2322 (companion) and SD 1644 (replacement reference).

Limitations / notes

  • The circulating packet contains portions of other bills and excerpts; this summary focuses on the Idaho SB 1119 material provided. Several operative sections (detailed licensing criteria, penalties, and provider-specific prohibitions) were truncated and are not reproduced here. Review of the full enrolled bill text is recommended for implementation specifics.

Compiled from official sources — confirm details with the bill’s official record.

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