Bill > A00682

This bill establishes a comprehensive regulatory framework for on-demand pay providers in New York, which are services that allow workers to access their earned but unpaid income before their regular payday. The bill creates two categories of providers: employer-integrated on-demand pay providers (who work directly with employers to verify income) and non-verified on-demand pay providers. Employer-integrated providers must register with the state superintendent and provide confidential financial and operational information, develop user complaint procedures, clearly state fees, inform users of their rights, and allow users to cancel services without charge. Non-verified providers will be subject to stricter regulations, including being considered as loan providers with interest rates capped at 10% annually and required to comply with lending laws and federal Truth in Lending Act disclosure requirements. The bill aims to protect workers by ensuring transparency, preventing predatory practices, and establishing clear guidelines for these emerging financial services. Providers who violate the regulations can be fined up to $1,000 per violation, and the law will take effect 90 days after becoming law. Importantly, employer-integrated providers will not be classified as money transmitters, and their services will not be considered loans, while non-verified providers face more stringent legal requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A682