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HF 2874

Earned wage access services regulated.

2025-2026 Regular Session Introduced by Ron Kresha and 1 co-sponsor

Minnesota would regulate earned wage access providers with licensing, disclosures, and consumer protections to ensure transparent, fair, and compliant services.

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Bill Summary · HF 2874

Summary of HF 2874 (Minnesota, 2025-2026): Earned Wage Access Services Regulated

Overview

HF 2874 is a Minnesota bill introduced in the 2025-2026 session that aims to regulate earned wage access (EWA) services. EWA services allow workers to access a portion of their earned wages before a traditional pay cycle. The bill’s core purpose is to establish a regulatory framework to oversee these services, protect workers, and ensure transparency and fair practices in the provision of early wage access.

  • Session: 2025-2026
  • Jurisdiction: Minnesota
  • Title: Earned wage access services regulated
  • Introduced: 2025-03-26 (first reading; referred to Commerce Finance and Policy)
  • Author changes: On 2026-03-02, the author was stricken (changes to authorhip noted); subsequent action history includes removal/addition of a co-sponsor
  • Co-sponsors: Ron Kresha; Andrew Myers

Note: The action history indicates procedural changes to authorship but does not alter the substantive content as introduced.

Primary Purpose and Intent

  • Establish a state regulatory regime for earned wage access services operating in Minnesota.
  • Promote consumer protection by setting standards for disclosure, fees, terms, and disclosures to workers.
  • Create enforcement mechanisms to ensure compliance by EWA providers.
  • Provide clarity for workers and employers about the availability and legality of EWA arrangements.

Key Provisions and Provisions (as typically included in EWA regulation bills)

While the specific text of HF 2874 is not provided here, bills of this nature commonly include the following elements. This summary reflects the typical structure and aims of earned wage access regulation:

  • Definition of EWA services: Clear definition of what constitutes an earned wage access product or service (e.g., a program or offering that allows a worker to access a portion of earned wages before scheduled payday).
  • Licensing and registration: Requirement for providers to register or obtain a license to operate in Minnesota; may include ongoing compliance requirements.
  • Consumer disclosures: Mandated disclosures to workers about fees, repayment terms, interest or other charges (if any), the total cost of accessing wages early, and the impact on net pay.
  • Fees and terms: Caps or prohibitions on certain fees, mandatory fee disclosures, and rules governing repayment schedules.
  • Prohibited practices: Restrictions on marketing to certain populations, coercive practices, or misrepresentation of terms.
  • Data privacy and security: Safeguards for personal and financial data collected by EWA providers.
  • Notice to employers: If applicable, requirements for employers to inform employees about EWA options and any involvement in the service.
  • Consumer protections: Provisions mirroring general financial protection standards (e.g., dispute resolution, error correction, and safe-guarding wage information).
  • Supervision and enforcement: Role of a state agency (likely the Department of Commerce or similar) to license, monitor, and enforce compliance; possible penalties for violations (fines, license suspension, or revocation).
  • Recordkeeping: Requirements to maintain records for a specified period.
  • Effective date and transition: Timeline for when the regulation takes effect and any grace periods for existing providers.

Who Would Be Affected

  • EWA Providers: Companies offering earned wage access services would be subject to licensing/registration, disclosure, and compliance requirements.
  • Workers/Consumers: Employees who use or consider EWA services would gain enhanced protections, clearer information about costs, and clearer dispute mechanisms.
  • Employers: Employers partnering with EWA providers may need to ensure compliance with disclosures and provide information to employees as required.
  • Financial/Tech Service Platforms: Any platform offering EWA features as part of payroll or benefits may be regulated under these provisions.

Procedural and Timeline Aspects

  • Introduction and Assignment: Introduced on 2025-03-26 and referred to the Commerce Finance and Policy committee for consideration.
  • Subsequent Actions: The author was stricken on 2026-03-02, indicating a change in the bill’s sponsorship; a co-sponsorship by Ron Kresha and Andrew Myers is noted.
  • Next Steps: If advanced, the bill would proceed through committee hearings, potential amendments, and floor votes in the Minnesota Legislature, with an eventual path to the governor for signature or veto.

Observations and Context

  • The bill’s aim aligns with broader consumer protection initiatives around new wage-access products, ensuring transparency around costs and preventing predatory practices.
  • The exact regulatory framework (licensing regime, specific fee caps, and enforcement penalties) would be detailed in the bill’s text and any amendments during committee consideration.

If you’d like, I can tailor this summary to emphasize specific sections once the bill’s full text is available, or provide a side-by-side with similar enacted statutes in Minnesota or other states.

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

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