The proposed bill establishes the Washington State Employer-Integrated Wage Access Services Act, which aims to regulate businesses that provide earned wage access services. It introduces a licensing requirement for providers, mandating that they obtain a license from the Department of Financial Institutions by July 1, 2026. Key definitions are provided, including terms like "consumer," "earned but unpaid income," and "provider," while also clarifying that banks and credit unions are exempt from these regulations. Licensees are required to maintain a surety bond of at least $50,000 and are subject to penalties for violations, including the obligation to refund fees for non-compliant transactions. The bill also caps fees charged to consumers for these services at $5 per transaction and $10 per month.

Additionally, the bill amends existing laws to include "consumer-directed wage access services" under the definition of a loan, thereby subjecting them to the same regulatory framework as traditional loans. It outlines specific exemptions for employer-integrated wage access services and grants the director authority to waive certain licensing provisions to promote commerce and consumer protection. The bill also establishes that the burden of proof for claiming exemptions lies with the claimant and empowers the director to create rules for interpretation. Overall, the legislation aims to enhance consumer protection and ensure transparency in the wage access services industry while consolidating provisions into a new chapter in Title 31 RCW.

Statutes affected:
Substitute Bill: 31.04.015, 31.04.025