South Carolina Gov. Henry McMaster signed a new law in May requiring earned wage access providers operating in the state to register annually with the state’s Department of Consumer Affairs.

As part of that registration, the state will require that the EWA providers list fees to be imposed on the employee or employer in providing the services, and include at least one option by which a user can receive earned wage access services at no cost, the law states.

While the law imposes other limitations on such providers, the big win for the industry is that the law specifically says EWA services won’t be considered loans and their providers won’t be treated like lenders.

Earned wage access providers lauded Kansas Gov. Laura Kelly enacting a new law that will impose a licensing system for companies that enable workers to tap their compensation before payday. 

The law, which the Democratic governor signed in April, made Kansas the fourth state to enact a law supported by the industry and opposed by consumer advocates who have called for more stringent standards.

Under provisions of the new edict, which had bipartisan support, the Kansas Office of the State Bank Commissioner was authorized to oversee the industry. It also established registration requirements, including annual reports to the state, with the commissioner empowered to examine records and enforce compliance. 

In March 2024, Wisconsin became the third state to pass a law calling for earned wage access providers to be licensed, and kept EWA payments from being labeled as loans.

Wisconsin Democrat Gov. Tony Evers signed the bill, creating a “regulatory framework” to oversee such providers operating in the state, regardless of whether they are located in the state, according to a press release from his office. The companies will be licensed by the state’s Department of Financial Institutions.

While the Democratic governor signed the bill into law, it was mainly Republican lawmakers who sponsored it. This bill “will give employers the ability to better retain workers and provide their employees faster pay for work completed,” said a press release from one Republican sponsor, Wisconsin Rep. Alex Dallman. 

Missouri Gov. Michael Parson signed into law bipartisan legislation regarding earned wage access, becoming the second state to pass legislation regarding the burgeoning industry.

Any EWA provider in the state seeking to provide such services are required to register with the Missouri Department of Finance, pay a $1,000 registration fee and maintain payment records for at least two years, under the new law signed in July 2023.

“It is estimated that over 130,000 Missourians have used an EWA product, and over 600 employers offer it to their employees,” according to a letter last year from an industry group that backed the legislation.

Nevada became the first stake to ratify an earned wage access bill in June 2023 when Gov. Joe Lombardo signed a bill that that advocates of the legislation said is designed to put “guardrails” on the industry.

The Republican governor’s action on the bill follows the state’s Democratic-controlled legislature passing the bill to create a licensing process for earned wage access providers operating in the state. The legislation also appoints the state’s Commissioner of Financial Institutions to oversee the industry.

Under the law, EWA providers in the state are subject to a state exam and audit, with a fee and levy to pay for that oversight, according to a summary of the bill. Any license applicant is required to submit fingerprints for a criminal background check, and participate in a state registry for such companies.

The commissioner is empowered to hold investigations and hearings in the event that a licensee has violated the provisions of the statute, or otherwise engaged in conduct that requires the suspension, revocation or denial of renewal for a license.