Nevada Enacts First EWA Bill, Confirms Not a Loan

On June 13th, Nevada Governor Joe Lombardo signed into law the first-in-the-country earned wage access (EWA) bill – a bipartisan effort that creates numerous consumer protections and confirms EWA is not a loan.

Instead of forcing EWA into ill-fitting legacy regulatory frameworks, Nevada legislators created a new license tailored to EWA providers. In doing so, they recognize EWA as a new, innovative technology that benefits thousands of workers across the state.

The newly-signed legislation creates a number of consumer protections and differentiates between employer-integrated and direct-to-consumer providers. It ensures that EWA is non-recourse and there are no credit impacts or underwriting. The legislation also creates new protections on fees for consumers, including requiring a free option for consumers and ensuring there are no late fees, penalties, or interest in EWA transactions. EWA providers will also report anonymized data to the State of Nevada Financial Institutions Division (FID), which will publish an annual report on the sector in Nevada.

“We have a long history of thoughtful, balanced financial regulation in this state [ …] This legislation leads the nation in regulating a new promising market alternative that has the promise to bring much needed relief to hard-working Nevadans. Particularly during these difficult times of record high inflation as families are struggling and banks are closing, we need to find safe, secure means for Nevada families to avoid predatory credit financing.” – Democrat Senate Majority Leader Nicole Cannizzaro

Known across states as the “gold standard” in policy regulation, Democrat Senate Majority Leader Nicole Cannizzaro’s bill has set a high bar for EWA regulation. Signed by Republican Governor Lombardo, the bill is now the bipartisan blueprint for other states looking to create  licensing or registration systems for EWA providers.

Payactiv strongly supported this regulation, as it provides regulatory certainty for the industry while allowing room to innovate and grow, and confirms that EWA does not fit into traditional lending frameworks.  

The passage of this bill and creation of a new EWA license will provide welcome clarity to the broader EWA ecosystem, as it will be simple and straightforward for employers to determine which EWA providers are licensed to operate in Nevada.