Bill > S04355

This bill establishes a comprehensive regulatory framework for on-demand pay providers in New York, creating two distinct categories: employer-integrated and non-verified providers. For employer-integrated providers, the bill requires registration with the state superintendent, mandates annual confidential reporting of financial statements and user complaints, and establishes consumer protection requirements such as clear fee disclosures, user rights to cancel services without charge, and prohibitions on sharing fees with employers. Non-verified providers will be subject to stricter regulations, including being considered as loan providers with interest rates capped at 10% per year and needing to comply with existing lending laws and the Truth in Lending Act. The bill defines key terms like "earned income" and "on-demand pay services," which essentially refer to services that allow workers to access their earned but not-yet-paid wages. Providers who violate the provisions can be penalized up to $1,000 per violation. The legislation aims to provide oversight and consumer protections in the emerging on-demand pay industry while distinguishing between providers with direct employer relationships and those without verified income sources. The bill will take effect 90 days after becoming law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4355