Bill > HB1063

This bill establishes a comprehensive regulatory framework for businesses providing earned wage access services in Washington state. Beginning July 1, 2026, companies offering these services must obtain a license from the Department of Financial Institutions, which involves submitting a detailed application, passing background checks, paying fees, and maintaining a $30,000 surety bond. The bill defines earned wage access services as providing advances on projected or already earned income, and sets strict consumer protection guidelines. Providers must offer at least one no-cost option for accessing wages, clearly disclose all fees, allow consumers to cancel services without penalty, and are prohibited from charging excessive fees (capped at $5 per transaction) or reporting consumers to credit agencies. The legislation also forbids providers from compelling repayment through aggressive tactics like third-party debt collectors or legal action, and mandates that tips or donations be truly voluntary. The director of the Department of Financial Institutions is granted broad powers to investigate, enforce regulations, and impose penalties for violations, with potential consequences ranging from fines to license suspension. Importantly, the bill clarifies that these services are not considered loans, credit, or money transmission, providing legal clarity for this emerging financial service.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=1063&Year=2025&Initiative=false