Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1517 3
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By: Representative Ray 5
By: Senator Gilmore 6
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For An Act To Be Entitled 8
AN ACT TO ESTABLISH THE EARNED WAGE ACCESS SERVICES 9
ACT; AND FOR OTHER PURPOSES. 10
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Subtitle 13
TO ESTABLISH THE EARNED WAGE ACCESS 14
SERVICES ACT. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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SECTION 1. Arkansas Code Title 23, is amended to add an additional 19
chapter to read as follows: 20
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CHAPTER 52 22
CONSUMER PROTECTION 23
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Subchapter 1 — General Provisions 25
[Reserved.] 26
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Subchapter 2 — Earned Wage Access Services Act 28
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23-52-201. Title. 30
This subchapter shall be known and may be cited as the "Earned Wage Access 31
Services Act". 32
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23-52-202. Definitions. 34
As used in this subchapter: 35
(1) "Consumer" means a natural person residing in this state; 36 HB1517
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(2) "Consumer-directed earned wage access services" means the 1
business of delivering to a consumer access to earned but unpaid income based 2
on the consumer’s representation and the provider’s reasonable determination 3
of the consumer’s earned but unpaid income; 4
(3)(A) "Earned but unpaid income" means salary, wages, 5
compensation, or other income that a consumer or an employer has represented, 6
and that a provider has reasonably determined, has been earned or has accrued 7
to the benefit of the consumer in exchange for the consumer’s provision of 8
services to an employer or on behalf of an employer. 9
(B) "Earned but unpaid income" includes: 10
(i) Services provided on an hourly, project -based, 11
piecework, or other basis; and 12
(ii) If the consumer is acting as an independent 13
contractor of the employer, income that has not at the time of the payment of 14
proceeds been paid to the consumer by the employer; 15
(4) "Earned wage access services" means consumer -directed earned 16
wage access services, employer -integrated earned wage access services, or 17
both; 18
(5)(A) "Employer" means a person who employs a consumer or any 19
other person who is contractually obligated to pay a consumer earned but 20
unpaid income in exchange for a consumer’s provision of services to the 21
person or on behalf of the person, including on an hourly, project -based, 22
piecework, or other basis, and including when the consumer acts as an 23
independent contractor with respect to the person. 24
(B) "Employer" does not include a customer of an employer 25
or any other person whose obligation to make a payment of salary, wages, 26
compensation, or other income to a consumer is not based on the provision of 27
services by the consumer for or on behalf of the person; 28
(6) "Employer-integrated earned wage access services" means the 29
business of delivering to a consumer access to earned but unpaid income that 30
is based on employment, income, and attendance data obtained directly or 31
indirectly from an employer, including without limitation an employer’s 32
payroll service provider; 33
(7)(A) "Fee" means a charge imposed by a provider for delivery 34
or expedited delivery of proceeds to a consumer, a subscription or membership 35
charge imposed by a provider for a bona fide group of services that include 36 HB1517
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earned wage access services, or an amount paid by an employer to a provider 1
on a consumer’s behalf that entitles the consumer to receive proceeds at 2
reduced or no cost to the consumer. 3
(B) "Fee" does not mean a voluntary tip, gratuity, or 4
donation; 5
(8) "Outstanding proceeds" means a payment of proceeds to a 6
consumer by a provider that has not yet been repaid to that provider; 7
(9) "Proceeds” means a payment of funds to a consumer by a 8
provider that is based on earned but unpaid income; and 9
(10)(A) "Provider" means a person that is engaged in the 10
business of offering and providing earned wage access services to a consumer. 11
(B) "Provider" does not include: 12
(i) A service provider, including a payroll service 13
provider, whose role may include verifying the available earnings but who is 14
not contractually obligated to fund proceeds delivered as part of an earned 15
wage access service; or 16
(ii) An employer that offers a portion of salary, 17
wages, or compensation directly to an employee or an independent contractor 18
before the normally scheduled pay date. 19
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23-52-203. Provider earned wage access services — Prohibited 21
practices. 22
(a) A provider may use the mailing address provided by a consumer to 23
determine the consumer’s state of residence for purposes of this subchapter. 24
(b) A provider shall not be deemed to be engaging in lending, money 25
transmission, or debt collection in this state, or in violation of the laws 26
of this state governing the sale of, assignment of, or an order for earned 27
but unpaid income, if the provider: 28
(1) Complies with the requirements of this section; 29
(2) Develops and implements policies and procedures to respond 30
to questions raised by a consumer; 31
(3) Addresses a complaint from a consumer in an expedient 32
manner; 33
(4) Offers to a consumer at least one (1) reasonable option to 34
obtain proceeds at no cost to the consumer and clearly explains how to elect 35
the no-cost option under this subdivision (b)(4) whenever it offers a 36 HB1517
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consumer the option to receive proceeds for a fee; 1
(5) Before entering into an agreement with a consumer for the 2
provision of earned wage access services: 3
(A) Informs the consumer of the consumer's rights under 4
the agreement; and 5
(B) Fully and clearly discloses all fees associated with 6
the earned wage access services; 7
(6) Informs a consumer of a material change to the terms and 8
conditions of the earned wage access services before implementing the changes 9
for the consumer; 10
(7) Allows a consumer to cancel use of the provider’s earned 11
wage access services at any time without incurring a cancellation fee imposed 12
by the provider; 13
(8) Complies with all applicable local, state, and federal 14
privacy and information security laws; and 15
(9) Provides proceeds to a consumer by any means mutually agreed 16
upon by the consumer and the provider. 17
(c) If a provider solicits, charges, or receives a tip, gratuity, or 18
other donation from a consumer, the provider shall clearly and conspicuously 19
disclose: 20
(1) To the consumer immediately before each transaction that a 21
tip, gratuity, or other donation amount may be zero and is voluntary; and 22
(2) In its service contract with the consumer and elsewhere that 23
tips, gratuities, or donations are voluntary and that the offering of earned 24
wage access services, including the amount of proceeds a consumer is eligible 25
to request and the frequency with which proceeds are provided to a consumer, 26
is not contingent on whether the consumer pays a tip, gratuity, or other 27
donation or on the size of the tip, gratuity, or other donation. 28
(d) If a provider seeks repayment of outstanding proceeds or payment 29
of fees or other amounts owed, including voluntary tips, gratuities, or other 30
donations, in connection with the activities covered by this subchapter, from 31
a consumer’s account at a depository institution, including by means of 32
electronic fund transfer, the provider shall: 33
(1) Comply with applicable provisions of the Electronic Fund 34
Transfer Act, 15 U.S.C. 1693 et seq., as it existed on January 1, 2025, and 35
regulations adopted under the the Electronic Fund Transfer Act, 15 U.S.C. 36 HB1517
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1693 et seq., as it existed on January 1, 2025; and 1
(2)(A) Reimburse the consumer for the full amount of any 2
overdraft or nonsufficient funds fees imposed on a consumer by the consumer’s 3
depository institution that were caused by the provider's attempting to seek 4
payment of any outstanding proceeds, fees, or other payments, in connection 5
with the activities covered by this subchapter, including voluntary tips, 6
gratuities, or other donations, on a date before, or in an incorrect amount 7
from, the date or amount disclosed to the consumer. 8
(B) The provider is not subject to the requirements under 9
subdivision (d)(2)(A) of this section with respect to payments of outstanding 10
proceeds or fees incurred by a consumer through fraudulent or other unlawful 11
means. 12
(e) A provider shall not: 13
(1) Share with an employer a portion of any fees, voluntary 14
tips, gratuities, or other donations that were received from or charged to a 15
consumer for earned wage access services; 16
(2) Require a consumer’s credit report or a credit score 17
provided or issued by a consumer reporting agency to determine a consumer’s 18
eligibility for earned wage access services; 19
(3) Accept payment of outstanding proceeds, fees, voluntary 20
tips, gratuities, or other donations from a consumer by means of a credit 21
card or charge card; 22
(4) Charge a consumer a late fee, deferral fee, interest, or any 23
other penalty or charge for failure to pay outstanding proceeds, fees, 24
voluntary tips, gratuities, or other donations; 25
(5) Report to a consumer reporting agency or debt collector any 26
information about the consumer regarding the inability of the provider to be 27
repaid outstanding proceeds, fees, voluntary tips, gratuities, or other 28
donations; 29
(6) Compel or attempt to compel payment by a consumer of 30
outstanding proceeds, fees, voluntary tips, gratuities, or other donations to 31
the provider by: 32
(A) A suit against the consumer in a court of competent 33
jurisdiction; 34
(B) Use of a third party to pursue collection from the 35
consumer on the provider’s behalf; or 36 HB1517
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(C) Sale of outstanding proceeds, fees, voluntary tips, 1
gratuities, or other donations to a third -party collector or debt buyer for 2
collection from a consumer; 3
(7) Mislead or deceive a consumer about the voluntary nature of 4
the tips, gratuities, or donations or represent that the tip, gratuity, or 5
other donation will benefit a specific individual or group of individuals if 6
the provider solicits, charges, or receives tips, gratuities, or other 7
donations from a consumer; and 8
(8) Advertise, print, display, publish, distribute, or broadcast 9
or cause to be advertised, printed, displayed, published, distributed, or 10
broadcast, in any manner, any statement or representation with regard to the 11
earned wage access services offered by the provider that: 12
(A) Is false, misleading, or deceptive; or 13
(B) Omits material information that is necessary to make 14
the statement or representation not false, misleading, or deceptive. 15
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