On September 18, Jonathan Pompan, Andrew Bigart, Michael Aphibal, and Ben Mansour published “Earned Wage Access Providers Face State Law Labyrinth” in Law360. The following is an excerpt:
Earned wage access, or EWA, lets employees access wages they've already earned but haven't yet been paid, typically through an app or digital service.
For workers, this can mean avoiding payday loans or overdraft fees. For fintechs, it's a rapidly growing market. But behind the sleek and convenient consumer interface is a maze of evolving state laws — and partnering with a bank doesn't mean you can skip it.
Historically, some EWA providers have been able to rely on employer integrations, bank partnerships or so-called nonrecourse structures to avoid being treated as lenders.
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