Bill > S3110

Introduced Session

This bill, to be known as the "New Jersey Earned Wage Access Services Act," concerns the regulation of earned wage access services. The bill defines earned wage access services as providing consumer-directed wage access services or employer-integrated wage access services, or both. "Consumer-directed earned wage access services" is defined as delivering to a consumer access to earned but unpaid income that is based on the consumer's representations and the provider's reasonable determination of the consumer's earned but unpaid income. "Employer-integrated earned wage access services" means the business of delivering to consumers access to earned but unpaid income that is based on employment, income, and attendance data obtained directly or indirectly from an employer. Under the bill, the Commissioner of Banking and Insurance (commissioner) will issue a license if: (1) the applicant submits an application for a new license or for a renewal of a license; (2) the commissioner finds that the financial responsibility, experience, character, and general fitness of the applicant for a new license or for a renewal of a license demonstrate that the business will be operated honestly, fairly, and efficiently; and (3) the applicant submits to the commissioner the name, address, fingerprints, and written consent for a criminal history record background check to be performed on any officer, director, partner, or owner of a controlling interest of the applicant. The bill requires a license to state the name of the licensee and the licensee's principal place of business within or outside of the State, including any other information as the commissioner may require. A license will expire at the end of a license period of not less than two years or may be surrendered to the commissioner. Further, the bill requires any sale or transfer of a controlling interest in a licensee's or applicant's business to be approved by the commissioner prior to the transfer or sale, after the licensee or applicant has provided an application which contains a written notice of the proposed sale or transfer to the commissioner. The commissioner will approve the transfer or sale unless the commissioner determines, following notice and an opportunity for a hearing, that sufficient grounds exist to deny, revoke, or suspend the license. The bill requires every applicant for a license to prove in a form satisfactory to the commissioner, that the applicant has a net worth of at least $100,000, and has liquid assets of at least $100,000 available for the purpose of making earned wage access transactions. Every licensee is required to have at all times a net worth of at least $100,000 and shall maintain at all times assets of at least $100,000 in liquid form available for or actually used in the making of earned wage access transactions. With respect to issuing licenses, oversight of licensees, and enforcement of the activities under the bill, the commissioner has the authority to refuse to issue and may revoke, suspend, or refuse to renew a license, or impose a penalty under certain circumstances; access and examine books, accounts, records, and other documents maintained by a licensee; conduct investigations, which may include the subpoena of witnesses and documents; bring a summary action in a court of competent jurisdiction against any person who has engaged, is engaging, or is about to engage, in any practice or transaction prohibited by the bill; impose a civil penalty not exceeding $25,000 for a violation under the bill; and order that any person who has been found to have knowingly violated any provision of the bill, be barred for a term not exceeding 10 years from acting as a provider, stockholder, officer, director, partner, or other owner, or an employee of a licensee, or acting in any other capacity. The bill requires every licensee to identify the place of business where books, accounts, records, and other documents of the business conducted under the license, as may be prescribed by the commissioner, are maintained. If a change in location of records is made, the commissioner shall be notified in writing of the change within five business days of the change. Every licensee is required to preserve all books, accounts, records, and other documents pertaining to its business for at least three years from the date of original entry, or a longer time as prescribed by the commissioner by regulation. Additionally, the bill establishes requirements and prohibitions for providers of earned wage access services to protect consumers. Providers are required to develop and implement policies for handling consumer questions and complaints; offer at least one reasonable option to obtain proceeds at no cost; inform consumers of their rights and fully disclose all fees before entering into an agreement; inform consumers of any material changes to the terms and conditions of earned wage access services; allow service cancellation without fees; and comply with privacy laws. Providers are also required to disclose that a tip, gratuity, or other donation amount is voluntary and provide proceeds by any means mutually agreed upon by the consumer and the provider. Providers are required to reimburse consumers for fees caused by incorrect payment attempts. The bill prohibits providers from (1) sharing with an employer a portion of any fees, voluntary tips, gratuities, or other donations paid by a consumer; (2) using credit reports or scores to determine a consumer's eligibility for earned wage access services; (3) accepting payment of outstanding proceeds, fees, voluntary tips, gratuities, or other donations by means of a credit card or charge card; (4) charging late fees, deferral fees, interest, or any other penalty or charge resulting from a failure to pay; (5) reporting unpaid balances to a consumer reporting agency or debt collector; (6) engaging in aggressive collection practices such as lawsuits or third-party debt sales; (7) misrepresenting the voluntary nature of the tips, gratuities, or donations or representing that they will benefit any specific individuals or group of individuals; (8) false or misleading advertising; and (9) imposing fees exceeding $5 in certain circumstances. However a provider may compel payment of outstanding proceeds or fees incurred by a consumer through fraudulent or other unlawful means, or from pursuing an employer for breach of its contractual obligations to the provider. Finally, the bill requires licensees to annually file a report with the commissioner concerning the business conducted as a licensee during the preceding calendar year. Failure to file the annual report will incur a penalty of not more than $100 for each day's failure and the commissioner may revoke or suspend the licensees' authority to do business in this State. A depository institution or trust company is not subject to the provisions of the bill.

AI Summary

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Benjie Wimberly (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)

Official Document