Stricken language would be deleted from and underlined language would be added to present law.
Act 347 of the Regular Session
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State of Arkansas As Engrossed: H3/4/25 H3/6/25 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 As Engrossed: H3/4/25 H3/6/25 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 As Engrossed: H3/4/25 H3/6/25 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; 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; or 19
(iii) An entity that offers or provides earned wage access 20
services and reports a consumer's payment or nonpayment of outstanding 21
proceeds or fees, voluntary tips, gratuities, or other donations in 22
connection with the earned wage access services to a consumer reporting 23
agency, as defined in the Fair Credit Reporting Act, 15 U.S.C. § 1681 et 24
seq., as it existed on January 1, 2025. 25
26
23-52-203. Provider earned wage access services — Prohibited practices. 27
(a) A provider may use the mailing address provided by a consumer to 28
determine the consumer’s state of residence for purposes of this subchapter. 29
(b) A provider shall not be deemed to be engaging in lending, money 30
transmission, or debt collection in this state, or in violation of the laws 31
of this state governing the sale of, assignment of, or an order for earned 32
but unpaid income, if the provider: 33
(1) Complies with the requirements of this section; 34
(2) Develops and implements policies and procedures to respond 35
to questions raised by a consumer; 36 As Engrossed: H3/4/25 H3/6/25 HB1517
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(3) Addresses a complaint from a consumer in an expedient 1
manner; 2
(4) Offers to a consumer at least one (1) reasonable option to 3
obtain proceeds at no cost to the consumer and clearly explains how to elect 4
the no-cost option under this subdivision (b)(4) whenever it offers a 5
consumer the option to receive proceeds for a fee; 6
(5) Before entering into an agreement with a consumer for the 7
provision of earned wage access services: 8
(A) Informs the consumer of the consumer's rights under 9
the agreement; and 10
(B) Fully and clearly discloses all fees associated with 11
the earned wage access services; 12
(6) Informs a consumer of a material change to the terms and 13
conditions of the earned wage access services before implementing the changes 14
for the consumer; 15
(7) Allows a consumer to cancel use of the provider’s earned 16
wage access services at any time without incurring a cancellation fee imposed 17
by the provider; 18
(8) Complies with all applicable local, state, and federal 19
privacy and information security laws; and 20
(9) Provides proceeds to a consumer by any means mutually agreed 21
upon by the consumer and the provider. 22
(c) If a provider solicits, charges, or receives a tip, gratuity, or 23
other donation from a consumer, the provider shall clearly and conspicuously 24
disclose: 25
(1) To the consumer immediately before each transaction that a 26
tip, gratuity, or other donation amount may be zero and is voluntary; and 27
(2) In its service contract with the consumer and elsewhere that 28
tips, gratuities, or donations are voluntary and that the offering of earned 29
wage access services, including the amount of proceeds a consumer is eligible 30
to request and the frequency with which proceeds are provided to a consumer, 31
is not contingent on whether the consumer pays a tip, gratuity, or other 32
donation or on the size of the tip, gratuity, or other donation. 33
(d) If a provider seeks repayment of outstanding proceeds or payment 34
of fees or other amounts owed, including voluntary tips, gratuities, or other 35
donations, in connection with the activities covered by this subchapter, from 36 As Engrossed: H3/4/25 H3/6/25 HB1517
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a consumer’s account at a depository institution, including by means of 1
electronic fund transfer, the provider shall: 2
(1) Comply with applicable provisions of the Electronic Fund 3
Transfer Act, 15 U.S.C. 1693 et seq., as it existed on January 1, 2025, and 4
regulations adopted under the the Electronic Fund Transfer Act, 15 U.S.C. 5
1693 et seq., as it existed on January 1, 2025; and 6
(2)(A) Reimburse the consumer for the full amount of any 7
overdraft or nonsufficient funds fees imposed on a consumer by the consumer’s 8
depository institution that were caused by the provider's attempting to seek 9
payment of any outstanding proceeds, fees, or other payments, in connection 10
with the activities covered by this subchapter, including voluntary tips, 11
gratuities, or other donations, on a date before, or in an incorrect amount 12
from, the date or amount disclosed to the consumer. 13
(B) The provider is not subject to the requirements under 14
subdivision (d)(2)(A) of this section with respect to payments of outstanding 15
proceeds or fees incurred by a consumer through fraudulent or other unlawful 16
means. 17
(e) A provider shall not: 18
(1) Share with an employer a portion of any fees, voluntary 19
tips, gratuities, or other donations that were received from or charged to a 20
consumer for earned wage access services; 21
(2) Require a consumer’s credit report or a credit score 22
provided or issued by a consumer reporting agency to determine a consumer’s 23
eligibility for earned wage access services; 24
(3) Accept payment of outstanding proceeds, fees, voluntary 25
tips, gratuities, or other donations from a consumer by means of a credit 26
card or charge card; 27
(4) Charge a consumer a late fee, deferral fee, interest, or any 28
other penalty or charge for failure to pay outstanding proceeds, fees, 29
voluntary tips, gratuities, or other donations; 30
(5) Compel or attempt to compel payment by a consumer of 31
outstanding proceeds, fees, voluntary tips, gratuities, or other donations to 32
the provider by: 33
(A) A suit against the consumer in a court of competent 34
jurisdiction; 35
(B) Use of a third party to pursue collection from the 36 As Engrossed: H3/4/25 H3/6/25 HB1517
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consumer on the provider’s behalf; or 1
(C) Sale of outstanding proceeds, fees, voluntary tips, 2
gratuities, or other donations to a third -party collector or debt buyer for 3
collection from a consumer; 4
(6) Mislead or deceive a consumer about the voluntary nature of 5
the tips, gratuities, or donations or represent that the tip, gratuity, or 6
other donation will benefit a specific individual or group of individuals if 7
the provider solicits, charges, or receives tips, gratuities, or other 8
donations from a consumer; and 9
(7) Advertise, print, display, publish, distribute, or broadcast 10
or cause to be advertised, printed, displayed, published, distributed, or 11
broadcast, in any manner, any statement or representation with regard to the 12
earned wage access services offered by the provider that: 13
(A) Is false, misleading, or deceptive; or 14
(B) Omits material information that is necessary to make 15
the statement or representation not false, misleading, or deceptive. 16
17
23-52-204. Applicability. 18
This subchapter does not apply to a corporation organized under the 19
general banking laws, savings and loan laws, or credit union laws of this 20
state, any other state, or the United States Government. 21
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/s/Ray 23
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APPROVED: 3/20/25 26
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