The proposed bill establishes a new chapter in Title 31 RCW dedicated to the licensing and regulation of earned wage access services in Washington State. It defines essential terms such as "consumer," "provider," and "earned but unpaid income," and sets forth the licensing requirements that will take effect on July 1, 2026. Entities wishing to offer these services must obtain a license through the nationwide mortgage licensing system, which includes undergoing background checks, paying fees, and maintaining a surety bond of at least $30,000. The bill also empowers the director of the Department of Financial Institutions to enforce these regulations, issue licenses, and impose penalties for non-compliance, including the denial, suspension, or revocation of licenses based on specific criteria.

In addition to establishing a regulatory framework, the bill mandates that licensees develop consumer protection policies, provide transparent information about their services, and allow consumers to cancel services without incurring fees. It prohibits practices such as sharing fees with employers and requiring credit reports for service eligibility. The director is granted broad authority to investigate compliance and enforce regulations, with violations potentially resulting in gross misdemeanor charges. The legislation clarifies that earned wage access services are not classified as loans or money transmission, thereby distinguishing them from traditional financial services. Overall, the bill aims to enhance consumer protection and accountability within the earned wage access industry, officially titled the "Washington State Earned Wage Access Services Act."