The Utah Legislature has passed H.B. 279, known as the Earned Wage Access Services Act. Sponsored by Representative A. Cory Maloy (R) and Senator Chris H. Wilson (R), this legislation aims to regulate earned wage access (EWA) providers. Notably, “providers” is defined to include a person engaged in the business of offering earned wage access, but not an employer that advances a portion of earned wages directly to employees or independent contractors. If signed by the Governor, the Act will take effect on May 7, 2025.

Key Provisions

To operate as an EWA provider in Utah, entities must register with the Division of Consumer Protection. The registration process includes submitting an application, paying a fee, and providing a copy of the agreement used with consumers. Providers must renew their registration annually and comply with background check requirements for their principals.

The Act mandates several consumer protection measures, including:

  • Disclosing consumer rights, fees, and any voluntary tips or donations.
  • Obtaining consumer consent for changes to terms and conditions or providing at least 30 days’ notice for material changes.
  • Allowing consumers to cancel EWA services without penalty.
  • Offering at least one no-fee option for receiving funds.
  • Complying with applicable privacy and information security laws.
  • Reimbursing consumers for overdraft or non-sufficient fund fees resulting from provider errors.
  • Requiring providers to implement consumer complaint policies.

The Act prohibits providers from:

  • Using or threatening civil lawsuits, outbound calls, third-party collections, or debt sales to compel repayment.
  • Reporting nonpayment to consumer reporting agencies.
  • Charging interest, finance charges, late fees, or other penalties for nonpayment.
  • Using a consumer’s credit report or score to determine eligibility for EWA services.
  • Accepting payment via credit card or charge card.
  • Misleading consumers about the voluntary nature of tips, gratuities, or donations.

The Division of Consumer Protection is tasked with administering and enforcing the Act. The Division has the authority to impose administrative fines of up to $2,500 per violation and may bring court actions to enforce compliance. Courts may issue injunctions, order disgorgement of funds, and impose additional fines. Violations of administrative or court orders can result in civil penalties of up to $5,000 per violation.

The Act does explicitly state that a provider offering EWA services “is not offering a loan or other form of credit or debt, if the provider is not a creditor, a debt collector, or a lender; or is not offering a money transmission, if the provider is not a money transmitter.” Also, fees, voluntary tips, gratuities, or other donations paid to the provider are not interest or finance charges.