Democrat Governor Laura Kelly Signs Kansas EWA Bill into Law

On April 19, Governor Laura Kelly (D-KS) signed the country’s fourth earned wage access (EWA) bill into law. The bill received broad bipartisan approval in the Kansas House of Representatives and Senate, and Payactiv was proud to support the bill.

Like other states before it, the bill creates a new licensing system for EWA providers. In doing so, the state recognizes EWA as a unique financial services product requiring a tailored oversight system, and confirms that EWA is neither credit nor subject to lending requirements.

The bill also encodes a number of best practices into law as consumer protections – ensuring there will never be any recourse related to an EWA transaction; there will never be any interest, late fees, or penalties of any kind; there is no credit impact or reporting; and users have access to at least one free option to receive their earned wages. Payactiv offers users five free options to access their earned wages, most of which are delivered instantly.

As the bill creates a new EWA license, it will require some time for the Kansas Office of State Banking Commissioner to set up the license. After it is available, Payactiv will go through the process and expects to become a licensed EWA provider in Kansas later this year.

Kansas joins a growing number of states that have provided welcome regulatory clarity for the rapidly-growing EWA industry. Nevada, Missouri, and Wisconsin are among the first states to enact similar legislation. Attorneys General in Arizona and Montana have also released formal opinions confirming EWA is not credit or a loan.