Bill
HB 5568
HB 5568 would exempt earned wage access services from Michigan’s general usury rate limits, but only if HB 5558 creates a separate EWA licensing framework.
Jurisdiction: Michigan
Title: Financial institutions: generally; 1966 PA 326; amend to exempt earned wage access services. Amends sec. 1 of 1966 PA 326 (MCL 438.31). Tie bar with HB 5558/26.
Purpose and intent
- HB 5568 would amend the state usury law (1966 PA 326) to explicitly exempt earned wage access (EWA) services from the act’s general interest-rate framework.
- The tie-bar indicates HB 5568 is contingent on enactment of HB 5558 (Earned Wage Access Services Act), suggesting a broader regulatory framework for EWA licenses and activities.
Key provisions and changes (substantive)
- Amends Sec. 1 of 1966 PA 326:
- Current framework: The act sets an interest rate baseline (e.g., $5 per $100 per year) with a maximum allowable written agreement rate up to 7% per annum, among other general provisions.
- HB 5568 would exempt “earned wage access services” from application of this act, aligning with the EWA regulatory scheme established or to be established by HB 5558.
- Statutory language indicates that the earned wage access licensees would not be subject to the state’s traditional interest-rate cap under 1966 PA 326 for the activities described in the EWA context.
- The proposed exemption is explicit in section (2)(c) for “Any business transacted pursuant to a license under the earned wage access services act.”
- The bill includes standard enacting language: the amendment does not take effect unless HB 5558 is enacted into law (tie-bar).
Relation to other bills
- HB 5558 would create the Earned Wage Access Services Act (licensing, regulatory framework, consumer protections, fees, bonds, reporting, enforcement). HB 5568’s exemption is contingent on HB 5558 becoming law.
- Other related bills (HB 5559–5569) would adjust related statutes to acknowledge EWA licenses and services, and HB 5568’s exemption interplays with those provisions.
Who or what would be affected
- Earned wage access service providers operating in Michigan would gain an exemption from the general interest-rate framework of the state usury law when conducting licensed EWA activities.
- Consumers using EWA services would be indirectly affected via the regulatory regime created by HB 5558 (licensing, disclosures, fees, transparency, complaint processes, and protections).
- Depository institutions, payroll service providers, and certain employers could be exempt or regulated differently under the EWA license framework, subject to HB 5558 and related exempt provisions.
Procedural and timeline aspects
- Legislative status: HB 5568 introduced February 24, 2026; referred to Regulatory Reform; companion/tie-bar with HB 5558.
- Effective date: The exemption would take effect only if HB 5558 (the Earned Wage Access Services Act) is enacted into law.
- Administrative consequences anticipated (not in HB 5568 alone but relevant to the package):
- If HB 5558 is enacted, DIFS (Department of Insurance and Financial Services) would license EWA providers, set fees, require bonds, establish reporting requirements, and enforce compliance (with hearings, fines, suspensions, etc.).
- HB 5568’s exemption would remove EWA activities from the general interest-rate restrictions, aligning with the specialized regulatory approach under HB 5558.
Fiscal impact (as analyzed for companion bills)
- HB 5558 is anticipated to have an indeterminate fiscal impact on DIFS, due to licensing/registration processing, enforcement, and potential fines. HB 5568’s exempt status would influence the scope of applicability of the usury framework but does not by itself establish new revenue or costs beyond the linked licensing regime.
Notes
- The package is designed to create a dedicated licensing ecosystem for EWA services with consumer protections, while HB 5568 ensures EWA activities are not constrained by the traditional Michigan usury rate limits, to be applied under the new EWA framework.
Sources
- HB 5568 text and summary (Intro 2026)
- Related analysis of Earned Wage Access Services Act (HB 5558) and companion bills
- House Fiscal Agency briefing materials associated with HB 5558–5569 (as introduced)
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
