Earned Wage Access
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Nevada Introduces First Regulatory Standards for Earned Wage Access in the US

Joe Lombardo, the 31st Governor of Nevada, has signed the first legislative bill in the country to introduce regulatory standards for companies offering earned wage access (EWA). 

Earned wage access is a concept that has increased in popularity significantly in recent years. Driven by rising interest rates and a higher cost of living, employees across the globe are recognising the benefits that gaining access to their already earned wage could offer, over existing systems which require them to wait monthly or bi-monthly for payment.

Joe Lombardo, the 31st Governor of Nevada
Joe Lombardo, the 31st Governor of Nevada

The American Fintech Council (AFC) joined members in Carson City, Nevada on a number of occasions to testify before the State Senate and State Assembly. The council urged Governor Lombardo to sign the bipartisan legislation into law.

AFC has also publically thanked Senate Majority Leader Nicole Cannizzaro, Senate Deputy Leader Roberta Lange, and Assembly Majority Leader Sandra Jauregui for their partnership in drafting important legislation to create the first-in-the-nation standards and safeguards for earned wage access in Nevada.

AFC, the industry association representing responsible fintech companies creating critical standards and access to safe financial services, collaborated with members and stakeholders to advocate for important regulatory standards for EWA companies to protect Nevada consumers.

“As the first state in the nation to embrace regulatory standards for the nascent EWA industry, we are confident Nevada will serve as a leader to enable consumer access to their finances without compromising on consumer protection,” said Phil Goldfeder, CEO of the American Fintech Council.

Goldfeder concluded: “Thank you to Senators Cannizzaro and Lange and Assemblywoman Sandra Jauregui for their tireless efforts on behalf of their constituents and all Nevada families in need of additional safe and affordable financial options”.

A ‘mission to empower American workers’

The bill creates and requires state licensing for all EWA providers operating in Nevada, including those who integrate with business as well as companies that offer services direct to consumers. The bill codifies industry best practices and first-in-the-nation consumer protections, including strong transparency, non-recourse, no late fees, no debt collection, no credit reporting, no collection activity of any kind, and requires that all EWA users must have a ‘no cost’ option.

Kevin Coop, DailyPay on Earned Wage Access Nevada
Kevin Coop, CEO of DailyPay

Kevin Coop, CEO of EWA payment provider DailyPay, also expressed that the company is pleased to see this development for increased regulation for the space: “DailyPay is proud to be part of the broad coalition that helped to develop this bill, which received wide, bipartisan support.

“In its final form, this law includes strong, first-in-the-nation consumer protections for Nevada’s hundreds of thousands of earned wage access consumers and allows DailyPay to advance its mission to empower American workers to improve their financial health by avoiding expensive and predatory financial products and strategies”.

In a letter to Governor Lombardo earlier this week, AFC urged his consideration for the bill and his immediate signing.

AFC wrote: “Employees appreciate this new option because in today’s modern economy, Nevada residents, like most Americans, expect life on-demand. In addition, nearly three quarters of Americans today live paycheck to paycheck. But bills and emergencies do not wait every two weeks or once a month for an employer to run payroll. EWA solves for these disconnects by facilitating access to already earned wages – not future wages – for a low, flat, ATM-like fee.”

The Nevada bill creates a blueprint for EWA regulation that received broad, bipartisan support and is likely to be a model bill for other states to adopt.

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