Arkansas and Utah Enact Laws to Regulate Earned Wage Access Providers

Just days apart, Arkansas and Utah enacted laws to regulate providers of earned wage access (“EWA”) services, joining the handful of states that have enacted legislation to regulate these products since 2022. Arkansas House Bill 1517 and Utah House Bill 279 were signed into law on March 20, 2025 and March 25, 2025, respectively. As EWA products have gained popularity as an alternate source of short-term liquidity for consumers, several states have enacted laws to regulate these products and enact consumer protection requirements. Some important takeaways from the new Utah and Arkansas EWA laws are discussed below.

Utah HB 279

Utah’s newly enacted Earned Wage Access Services Act requires providers of EWA products to register with the Utah Division of Consumer Protection (the “Division”) and renew their registration annually. The registration process will require the payment of an application fee, submission of a copy of the applicant’s EWA services agreement for use with consumers, submission of fingerprints by an applicant’s principal for a criminal background check, and any other information required by the Division.

In addition to the registration requirement, the Utah Earned Wage Access Services Act also imposes practice requirements on EWA providers. Among other requirements, providers of EWA services will be required to:

• Clearly and conspicuously disclose: the consumer’s rights; all fees; any voluntary tip, gratuity or donation opportunities (if the EWA program involves “tips” or other gratuities); the voluntary nature of any tips and confirmation that the availability of EWA services is not contingent on tips;
• Disclose to a consumer at the time of a consumer’s request for funds: the anticipated timing for the consumer’s receipt of funds; the amount of funds requested; the amount of the fee charged; the amount of funds the consumer will receive; the account that will receive the funds; and the date the provider is authorized to withdraw funds from the consumer’s account, including fees and voluntary payments;
• Implement procedures to address consumer questions and complaints, and provide information to consumers regarding how to file a complaint with the Division; and
• Allow a consumer to cancel at any time without penalty.

EWA providers will also be subject to a number of restrictions, including but not limited to prohibitions on the following practices:

• Compelling a consumer to repay funds through the threat or use of litigation, outbound calls, third-party debt collectors, or debt sales; reporting nonpayment to consumer reporting agencies or threatening to do so; or charging or threatening to charge interest, charges, fees or other penalties for nonpayment;
• Using a consumer’s credit score to determine eligibility for EWA services;
• Conditioning the consumer’s receipt of funds on tips, gratuities or donations, or misleading a consumer about the voluntary nature of tips, gratuities, or donations; and
• Charging a fee, interest or other penalty for failure to repay funds.

The legislation defines a provider to exclude employers that advance earned wages directly to employees or independent contractors, and service providers that do not fund earned wages. The Utah legislation provides a broad exemption from the EWA law for a person regulated under Utah’s financial institutions statutes, which regulate certain banks, money transmitters, industrial banks, escrow agents, check cashers, title lenders, and commercial financers. In addition, EWA providers subject to the Utah Earned Wage Access Services Act are exempt from the Utah statutes regulating financial institutions and are presumed not to be extending credit if they do not otherwise qualify as creditors or lenders.

With an effective date of May 7, 2025, HB 279 does not provide much runway for providers that will be subject to the law’s requirements to register and bring their practices into compliance with the law. However, the Utah legislature has provided some accommodation for the industry:  EWA providers doing business in Utah on May 7, 2025 may continue doing business if they apply for a registration by October 6, 2025 and otherwise comply with the legislation’s substantive requirements.

Arkansas HB 1517

In contrast to the Utah bill, the new Arkansas Earned Wage Access Services Act does not require EWA providers to obtain a license or registration. Instead, the Arkansas legislation only requires providers to comply with certain practice requirements. A provider that complies with the Arkansas legislation’s prohibited practices provisions will not be deemed to be engaging in lending, money transmission, or debt collection, and will not be deemed in violation of Arkansas laws governing the sale or assignment of earned but unpaid income as a result of the provider’s EWA activities. (While Arkansas does not license non-real estate-secured consumer lending, it does license certain money transmission and debt collection activities.)

The specific practice requirements that HB 1517 imposes on EWA “providers” overlap with those found in the Utah legislation, as well as several other states’ EWA laws. Among other requirements, the Arkansas law requires EWA providers to:

• Clearly and conspicuously disclose and provide in the service contract that any tips, gratuities or donations are voluntary, and disclose that EWA services are not contingent on the payment of any such amounts;
• Address complaints expediently and develop policies and procedures to respond to consumer questions;
• Offer at least one “reasonable” no-cost EWA option to the consumer;
• Fully disclose the consumer’s rights under the agreement and all fees associated with the EWA product before entering into an agreement; and
• Allow the consumer to cancel at any time without a fee.

An EWA provider is also subject to a number of prohibitions under the Arkansas legislation, including but not limited to a prohibition on: the sharing of tips with a consumer’s employer; requiring a credit report or score to determine consumer eligibility; charging a late fee or other charge; attempting to collect through litigation, third parties, or the sale of balances to a third- party debt collector or debt buyer; or engaging in misleading or deceptive advertising practices.

A provider is defined to exclude employers that advance earned wages directly to employees or independent contractors, and service providers that do not fund earned wages. A provider also does not include entities that offer or provide EWA services and that also report the consumer’s repayment activity to a consumer reporting agency.

HB 1517 will take effect the 91st day after the adjournment of the 2025 Arkansas legislative session.

Looking Ahead

The EWA industry should expect similar moves from additional states in the future. In addition to Utah, six states now require a license or registration to offer EWA products—California, Kansas, Missouri, Nevada, South Carolina and Wisconsin. Other states are likely to follow by enacting their own laws to regulate EWA services. Bills to license or regulate EWA products are pending in at least 21 states, including Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Kentucky, Massachusetts, Maryland, Maine, Missouri, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Texas, Utah, Vermont, and Washington.