Arkansas joins five other states in enacting a law that specifically regulates earned wage access (EWA) providers as nonlenders.
EWA is an on-demand payment product that allows workers to access their wages as they are earned rather than waiting for a scheduled payday. Arkansas Gov. Sarah Huckabee Sanders signed HB 1517 into law on March 20, 2025, joining Kansas, Missouri, Nevada, South Carolina and Wisconsin, which enacted legislation regulating EWA products in 2023 and 2024. In addition, Utah’s H.B. 279 awaits Gov. Spencer Cox’s signature. Regulators in Connecticut, Maryland and California have weighed in on the product with differing approaches.
Arkansas’s EWA Act
Set to go into effect 90 days after the legislature adjourns, H.B. 1517 establishes guidelines for providers without requiring them to be registered or licensed in the state. The act requires providers to develop and implement policies and procedures to respond to questions and address complaints in “an expedient manner.”
Like other state equivalents, providers will be required to offer at least one no-cost option, transparent fee disclosures and the ability for users to cancel the service at any time without penalties. Providers are prohibited from assessing late fees, interests or other penalties for nonpayment. However, providers can charge fees for expedited delivery of funds and subscriptions and may solicit tips in a transparent manner.
The bill exempts payroll providers that verify time and attendance but do not fund the wage advances; employers that directly advance earned funds to their employees; and providers that furnish information related to outstanding proceeds or fees, tips, gratuities or other donations in connection with EWA services to consumer reporting agencies.
The law represents another instance in which a legislature has determined that EWA providers do not engage in lending, money transmissions or debt collection, solidifying their status and shielding them from other, ill-fitting regulatory regimes.
The bill was supported by industry groups such as the American Fintech Council and is expected to be well received by EWA providers. Like Utah’s H.B. 279, the new Arkansas law represents a clear departure from EWA’s treatment in states such as Connecticut, where regulators have subjected most EWA products to the state’s small loan law.
McGuireWoods’ financial services and securities enforcement team counsels EWA clients and will continue to monitor legislation. For questions about EWA legislation and its impact, contact the authors of this alert.
About the Authors
Aaron Marienthal is a San Francisco partner in the firm’s Financial Services & Securities Enforcement Department, and one of the country’s leading authorities on EWA regulation. Aaron previously served as general counsel of leading EWA provider Payactiv, Inc. where he was instrumental in developing the country’s first EWA legislation.
Alex Farley is an associate in the firm’s Financial Services & Securities Enforcement Department. She counsels clients in the EWA space, in addition to her practice representing clients in complex litigation and regulatory matters.