Bill > HB368

This bill establishes the Louisiana Earned Wage Access Services Act, which creates a comprehensive regulatory framework for companies (called "providers") that offer early wage access services, allowing workers to receive a portion of their earned but not-yet-paid wages before their regular payday. The bill defines key terms like "consumer" (a Louisiana resident), "earned but unpaid income" (wages not yet paid), and "earned wage access services" (methods for workers to access early wages). The legislation mandates that providers must fully disclose fees, allow consumers to cancel services without charge, provide at least one no-cost option for accessing wages, and protect consumer privacy. Providers are prohibited from compelling repayment through lawsuits or debt collectors, charging late fees, requiring credit checks, or accepting credit card payments for repayment. The bill also requires providers to submit annual reports to the Office of Financial Institutions detailing transaction volumes, fees collected, and consumer complaints. Importantly, the law clarifies that these services are not considered lending or money transmission, which provides legal protection for such services. Providers who fail to submit required reports can face significant penalties, including potential nullification of their consumer agreements. The first reporting period will begin no later than March 1, 2027, giving providers time to prepare for compliance.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB368&sbi=y