On April 28, Governor Wes Moore (D) signed Senate Bill 94 into law, significantly revising Maryland’s earned wage access (EWA) framework and tightening restrictions on tipping practices in both EWA programs and certain consumer loans. The new law amends multiple provisions of the Commercial Law Article and adds new sections governing advertising, anti‑discrimination, and regulatory safe harbors.

Ongoing Obligations for EWA Providers

Providers must, among other things:

  • Develop and implement policies and procedures to respond to consumer questions and address complaints in an expedient manner.
  • Whenever EWA is offered for a fee, offer the consumer at least one reasonable option to obtain proceeds at no cost, and clearly explain how to elect that no‑cost option.
  • Before entering into an agreement, inform the consumer of their rights under the agreement and fully and clearly disclose all fees associated with the EWA services.
  • Inform consumers of any material changes to the terms and conditions before applying those changes to the consumer.
  • Allow consumers to cancel use of the services at any time without a cancellation fee.
  • Comply with all applicable local, state, and federal privacy and information security laws.
  • When collecting repayment or fees from a consumer’s bank account, comply with the federal Electronic Fund Transfer Act and reimburse, within five business days, any overdraft or nonsufficient funds fees imposed by the consumer’s bank that were caused by the provider’s attempted collection (except where the debt arose from fraud or other unlawful conduct by the consumer).

Complete Ban on Tipping for Earned Wage Access Providers and Certain Lenders

A central feature of Senate Bill 94 is the elimination of tipping in the EWA context and tighter limits on tipping in related consumer lending provisions.

For EWA providers, the law:

  • Prohibits providers from soliciting or charging any tip, gratuity, or other donation from consumers.
  • Requires providers to clearly and conspicuously disclose in their service contracts that they are prohibited by law from soliciting or retaining tips, gratuities, or other donations.

Separately, the Act amends two existing consumer loan provisions (§§ 12‑128 and 12‑318) to:

  • Prohibit lenders from accepting a tip from a consumer or giving a consumer the option to provide a tip.
  • Prohibit lenders from directly or indirectly suggesting that tipping will influence credit approval or loan terms.
  • Require lenders who do receive a tip to return the tip within seven days to avoid violating applicable interest‑rate limits.
  • Require lenders to prominently disclose that they are prohibited from accepting tips from consumers.

These changes collectively move Maryland away from the “optional tip” model that has appeared in many EWA and small‑dollar credit products.

Prohibited Practices for EWA Providers

Senate Bill 94 preserves, and in some ways tightens, the list of practices prohibited for EWA providers. A provider may not:

  • Share with an employer any charges received from a consumer for EWA.
  • Solicit or charge a tip, or condition a consumer’s access to EWA on the consumer’s ability or willingness to pay a tip.
  • Charge late fees, interest, or other penalties for failure to pay proceeds or fees.
  • Report a consumer’s failure to pay proceeds or fees to any consumer reporting agency.
  • Obtain a consumer’s credit report as a method of qualifying the consumer for EWA services.
  • Receive interest from a consumer.
  • Compel or attempt to compel payment of proceeds, fees, tips, gratuities, or donations through:
    • A civil action against the consumer,
    • Use of a third party to pursue collection, or
    • Sale or assignment of outstanding amounts to a third‑party collector or debt buyer.

Advertising, Anti‑Discrimination, and Regulatory Safe Harbor

The Act adds several new sections:

  • Advertising: Providers may not directly or indirectly print, publish, distribute, or broadcast any false, misleading, or deceptive statement about the fees, rates, terms, or conditions of EWA. If fees are advertised, the Commissioner may require that they be stated fully and clearly to prevent consumer misunderstanding. The Commissioner may also allow or require references to state supervision in advertising, subject to conditions designed to avoid misleading impressions about the scope of that oversight.
  • Non‑Discrimination: In granting or denying a consumer’s request for EWA, a licensee may not discriminate on the basis of race, color, creed, national origin, sex, sexual orientation, gender identity, disability, marital status, or age. Denying a request from a minor is expressly not considered age discrimination.
  • Good‑Faith Reliance Safe Harbor: A licensee or exempt person is not subject to penalty for certain violations if the conduct arose from good‑faith reliance on a written opinion of the Maryland Attorney General or the Commissioner, a regulation, a written interpretation in a notice or examination report, or a form or procedure approved in writing by the Commissioner and Attorney General. This safe harbor does not apply after the underlying opinion, regulation, or approval has been amended, repealed, or found invalid. It also does not limit civil or criminal penalties for knowing or willful violations or restrict the Commissioner’s or courts’ authority to order refunds for money collected in violation of the subtitle.

Senate Bill 94 takes effect October 1, 2026.