Bill > SB5328

This bill establishes a comprehensive regulatory framework for earned wage access services in Washington state, creating a new licensing and oversight system for businesses that provide early access to earned but unpaid income. Specifically, the bill requires providers of employer-integrated wage access services to obtain a license from the Department of Financial Institutions by July 1, 2026, and mandates several key provisions to protect consumers. These include limiting fees to $5 per transaction and no more than $10 per calendar month, establishing a statewide database to track transactions, and requiring detailed background checks and financial vetting of license applicants. The bill defines key terms such as "earned but unpaid income" and "employer-integrated wage access services," and provides the director of financial institutions with broad powers to investigate, regulate, and take enforcement actions against providers who violate the law. Providers must maintain accurate records, submit annual reports, and comply with strict advertising and consumer protection standards. Violations can result in significant penalties, including fines, license suspension or revocation, and potential criminal misdemeanor charges. The legislation aims to create a safe and transparent system for workers to access their earned wages before their regular payday while preventing predatory practices.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5328&Year=2025&Initiative=false