Bill > HB1294

This bill establishes a comprehensive regulatory framework for earned wage access (EWA) services in Maryland, creating new consumer protections and licensing requirements for providers. The bill defines two types of earned wage access: consumer-directed (provided by a third party using consumer-provided employment data) and employer-integrated (provided through an employer-contracted service). Key provisions include requiring EWA providers to be licensed, prohibiting providers from charging interest, imposing strict fee limits (up to $5 for advances under $75 and $7.50 for advances over $75), and establishing consumer protections such as mandating at least one no-cost option for accessing earned wages. The bill also restricts providers from sharing fees with employers, reporting consumer payment information to credit agencies, or compelling payment through legal action. Providers must develop consumer complaint procedures, clearly disclose all fees and terms, and allow consumers to cancel services without fees. Additionally, the bill regulates "tips" by requiring providers to set default tips at zero and prominently disclose that tips are voluntary and do not influence service. Providers must submit annual reports to the Office of Financial Regulation starting in 2026, and the Commissioner is authorized to adopt implementing regulations. The bill is set to take effect on October 1, 2025.

Budget and Finance, Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1294?ys=2025RS