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Bill

Bill

SB 5328

Establishing a new chapter for the licensing and regulation of businesses providing earned wage access services.

2025-2026 Regular Session Introduced by Perry Dozier and 2 co-sponsors

Washington establishes licensing and regulatory standards for earned wage access services to protect workers while creating operational framework for industry providers.

By resolution, returned to Senate Rules Committee for third reading.
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Bill Summary · SB 5328

Legislative bill overview

SB 5328 creates a new regulatory framework in Washington State for businesses offering earned wage access (EWA) services, which allow workers to receive portions of their earned wages before regular payday. The bill establishes licensing requirements, operational standards, and consumer protections specific to this financial service sector.

Why is this important

Earned wage access is a growing alternative to payday loans, used by millions of workers seeking short-term liquidity. Without regulation, these services could operate with minimal oversight, potentially exposing vulnerable workers to predatory practices, unclear fees, or data security risks. This bill addresses a regulatory gap by creating industry standards before the sector becomes entrenched.

Potential points of contention

  • Fee structure concerns: The bill's approach to permissible fees and charges may either protect workers from exploitation or impose restrictions that limit service availability for those who depend on EWA options
  • Employer involvement: EWA typically requires employer cooperation and data access; the bill's requirements around employer notification and data protection could create compliance burdens or privacy concerns
  • Relationship to traditional lending: Consumer advocates may argue regulations don't go far enough, while industry groups may contend strict licensing stifles innovation and consumer choice in a competitive market

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

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