Two More States Usher in Earned Wage Access Laws

Financial Services attorney Eamonn Moran was quoted in an American Banker article covering the latest state-level developments in earned wage access (EWA) regulations, as Louisiana and Connecticut join the growing number of states enacting specific rules for EWA providers. Louisiana’s new law closely aligns with similar regulations in other states, exempts providers from being classified as lenders and includes consumer protections such as clear fee disclosure and a no-cost option—becoming law without the governor’s signature. In contrast, Connecticut’s approach is notably stricter, reclassifying EWA as a small loan product with the nation’s lowest fee cap and additional compliance hurdles, including strict limits on loan amounts, provider verification requirements and consumer safeguards. Mr. Moran emphasized that while there are some consistent regulatory themes, the variations from state to state create complex challenges for EWA companies operating nationwide, making compliance increasingly demanding.

"One of the key points is that while there are some topics of uniformity in at least some of these states, there are also a lot of little – but yet critical – distinctions and variations from state to state. So, this can make compliance a bit more challenging than some might expect, especially for EWA platforms doing business nationwide," he said.

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