Proposed EWA Legislation Would Undercut State Regulations

Financial Services attorney Eamonn Moran spoke with the American Banker about a proposed federal law that would govern earned wage access (EWA) products and preempt existing state laws. The Earned Wage Access Consumer Protection Act, introduced in the House Financial Services Committee on January 12, 2026, covers both employer-integrated and direct-to-consumer EWA models and introduces disclosure requirements for EWA providers, including a no-cost option and instructions for accessing it as well as limits on the amount consumers can request per day. Notably, the bill does not classify EWA as credit and preempts state laws designating them as such. Mr. Moran underlined this provision, noting preemption means "the state law cannot be imposed, maintained or enforced" and states such as Connecticut and Maryland that currently treat EWA products as loans are at risk. He acknowledged, however, that states could turn to regulations on unfair or deceptive acts or practices (UDAP) to bring actions against EWA providers, already evidenced in New York and Maryland. Finally, he shared his reaction to the involvement of the Consumer Financial Protection Bureau (CFPB), tasked with enforcing the disclosure obligations.

"It's interesting, given the current state of the CFPB, that CFPB has a role here to issue regulations," he commented. "Despite the administration's efforts, there's a requirement that this agency actually still be around, to actually do some of this stuff."

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