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HB 1517

TO ESTABLISH THE EARNED WAGE ACCESS SERVICES ACT.

2025 Regular Session Introduced by Ben Gilmore and 1 co-sponsor

The Earned Wage Access Services Act allows Arkansas consumers to access unpaid wages, enhancing financial flexibility while ensuring transparency and consumer protections.

Notification that HB1517 is now Act 347
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Bill Summary · HB 1517

Summary of House Bill 1517: Earned Wage Access Services Act

Bill Number: HB 1517
Status: Now Act 347
Introduced: February 18, 2025
Sponsors: Representative Ray, Senator Gilmore

Purpose and Intent

House Bill 1517, known as the Earned Wage Access Services Act, aims to establish a regulatory framework for earned wage access (EWA) services in Arkansas. The intent of the bill is to provide consumers with timely access to their earned but unpaid income, thereby enhancing financial flexibility and consumer protection.

Key Provisions

The Act introduces several important provisions under a new chapter in the Arkansas Code:

Definitions

  • Consumer: A natural person residing in Arkansas.
  • Earned Wage Access Services: Services that allow consumers to access their earned but unpaid income.
  • Provider: Entities offering EWA services, excluding employers who provide early salary payments directly.

Consumer Protections

  1. Transparency: Providers must fully disclose all fees associated with EWA services before entering into agreements with consumers.
  2. No-Cost Options: Providers are required to offer at least one reasonable option for consumers to obtain proceeds at no cost.
  3. Cancellation Rights: Consumers can cancel their use of EWA services at any time without incurring cancellation fees.
  4. Complaint Resolution: Providers must develop policies to address consumer complaints expediently.

Prohibited Practices

  • Providers cannot engage in lending or money transmission activities under this Act.
  • Providers must not compel consumers to pay tips or donations as a condition for receiving EWA services.

Compliance and Reporting

  • Providers must comply with applicable privacy and information security laws.
  • They must also inform consumers of any material changes to the terms of service.

Impact

The Earned Wage Access Services Act is expected to benefit:
- Consumers: By providing access to earned wages, it aims to reduce financial stress and reliance on high-interest loans.
- Employers: By clarifying the role of EWA services, it may enhance employee satisfaction and retention.

Procedural Timeline

  • February 18, 2025: Bill filed and referred to the Committee on Insurance & Commerce.
  • March 6, 2025: Amendments adopted and bill engrossed.
  • March 10, 2025: Passed by the House and transmitted to the Senate.
  • March 17, 2025: Passed by the Senate and returned to the House.
  • March 20, 2025: Notification that HB 1517 is now Act 347.

Conclusion

The Earned Wage Access Services Act represents a significant step in consumer financial protection, allowing individuals in Arkansas to access their earned wages more flexibly. By establishing clear guidelines and protections, the Act aims to foster a more equitable financial environment for consumers.

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

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