© 2024 American Payroll Institute, Inc.
Wisconsin Becomes Third State to Pass Earned Wage Access Law
Effective September 1, 2024, a new law will regulate
earned wage access (EWA) services and create license
requirements for EWA providers in Wisconsin [A.B. 574,
L. 2024]. The state agency in charge of regulation will be the
Wisconsin Division of Banking (DOB). PayrollOrg previously
commented on proposed EWA legislation in Wisconsin (see
PAYSTATE UPDATE, Issue 22, Vol. 25). Two other states have
enacted EWA laws: Missouri and Nevada.
Definitions
The following definitions apply in the EWA law.
Consumer. An individual who resides in Wisconsin.
Earned but unpaid income. Salary, wages, compensation,
or other income that a consumer or an employer has
represented, and that a provider has reasonably determined,
has been earned or accrued to the benefit of the consumer
in exchange for the provision of services to the employer or
on behalf of the employer. This definition includes earnings
or accrued earnings paid on an hourly, project-based,
piecework, or other basis, and includes circumstances in
which the consumer is acting as an independent contractor
of the employer/hiring entity but has not, at the time of
payment of proceeds, been paid to the consumer by the
employer. Earned but unpaid income is not considered a loan
under state law.
Employer. A person who employs a consumer, or any
person who is contractually obligated to pay a consumer
earned but unpaid income in exchange for the consumer’s
provision of services to the employer or on behalf of the
employer. The definition also includes entities that hire
independent contractors.
An employer does not include: customers of an employer,
or any other person whose obligations to make a payment of
salary, wages, compensation, or other income to a consumer
is not based on the provision of services by that consumer for
or on behalf of the person.
Employer-integrated wage access services. The business
of delivering access to earned but unpaid income to
consumers based on employment, income, or attendance
data obtained directly or indirectly from an employer.
Fee. This includes a fee imposed by a provider for
delivery or expediated delivery of proceeds to a consumer.
It also includes a subscription or membership fee imposed
by a provider for a bona fide group of services that includes
EWA services. It does not include a voluntary tip, gratuity, or
other donation.
Proceeds. A payment in U.S. dollars to a consumer by a
provider based on earned but unpaid income.
Provider. A business entity that provides EWA services
to a consumer. A provider does not include payroll service
providers that may verify available earnings but are not
contractually obligated to fund proceeds delivered as part of
EWA services. A provider also does not include an employer
that offers a portion of salary, wages, or compensation
directly to employees or independent contractors prior to
the normally scheduled payday.
License requirements
EWA providers, including providers not physically located
in Wisconsin, may not provide EWA services in Wisconsin
unless the provider has been issued a license by the DOB.
The application for a license must include:
• Name of provider
• Business name, if different from provider name
• Address of the provider’s principal office (may be
located outside of Wisconsin)
• Addresses of provider’s offices or retail stories in
Wisconsin (if there are any)
• A brief description of the manner in which the provider
provides the EWA services, if the EWA services are offered
outside of Wisconsin
• Address of provider’s designated agent upon whom
service of process may be made in Wisconsin
• Provider’s federal employer identification number
(FEIN) and
• Any other information required by the DOB.
Providers will also be required to register with the
nationwide mortgage licensing system and registry. Providers
must update information required in the license application
within 15 business days after a material change in the
information. Providers must pay a nonrefundable fee to the
DOB when submitting the license application.
The DOB will not issue a license if the provider fails to
provide the required information or the provider is liable for
delinquent taxes or unemployment insurance contributions.
EWA program requirements
Providers must offer the consumer at least one
reasonable option to obtain the proceeds at no cost to the
consumer. Providers must clearly explain how to elect the no-
cost option.
EWA providers must develop and implement policies
and procedures to respond to questions raised by consumers
and address complaints in a timely manner.
Before entering into an agreement with a consumer
to provide EWA services, the provider must inform the
consumer of his or her rights under the agreement and fully
and clearly disclose all fees associated with EWA services.
Consumers must be informed of any material changes to the
terms and conditions of EWA services before the changes are
April 1, 2024 Volume 26 Issue 7
Wisconsin Becomes Third State to Pass Earned Wage Access Law
Effective September 1, 2024, a new law will regulate
earned wage access (EWA) services and create license
requirements for EWA providers in Wisconsin [A.B. 574,
L. 2024]. The state agency in charge of regulation will be the
Wisconsin Division of Banking (DOB). PayrollOrg previously
commented on proposed EWA legislation in Wisconsin (see
PAYSTATE UPDATE, Issue 22, Vol. 25). Two other states have
enacted EWA laws: Missouri and Nevada.
Definitions
The following definitions apply in the EWA law.
Consumer. An individual who resides in Wisconsin.
Earned but unpaid income. Salary, wages, compensation,
or other income that a consumer or an employer has
represented, and that a provider has reasonably determined,
has been earned or accrued to the benefit of the consumer
in exchange for the provision of services to the employer or
on behalf of the employer. This definition includes earnings
or accrued earnings paid on an hourly, project-based,
piecework, or other basis, and includes circumstances in
which the consumer is acting as an independent contractor
of the employer/hiring entity but has not, at the time of
payment of proceeds, been paid to the consumer by the
employer. Earned but unpaid income is not considered a loan
under state law.
Employer. A person who employs a consumer, or any
person who is contractually obligated to pay a consumer
earned but unpaid income in exchange for the consumer’s
provision of services to the employer or on behalf of the
employer. The definition also includes entities that hire
independent contractors.
An employer does not include: customers of an employer,
or any other person whose obligations to make a payment of
salary, wages, compensation, or other income to a consumer
is not based on the provision of services by that consumer for
or on behalf of the person.
Employer-integrated wage access services. The business
of delivering access to earned but unpaid income to
consumers based on employment, income, or attendance
data obtained directly or indirectly from an employer.
Fee. This includes a fee imposed by a provider for
delivery or expediated delivery of proceeds to a consumer.
It also includes a subscription or membership fee imposed
by a provider for a bona fide group of services that includes
EWA services. It does not include a voluntary tip, gratuity, or
other donation.
Proceeds. A payment in U.S. dollars to a consumer by a
provider based on earned but unpaid income.
Provider. A business entity that provides EWA services
to a consumer. A provider does not include payroll service
providers that may verify available earnings but are not
contractually obligated to fund proceeds delivered as part of
EWA services. A provider also does not include an employer
that offers a portion of salary, wages, or compensation
directly to employees or independent contractors prior to
the normally scheduled payday.
License requirements
EWA providers, including providers not physically located
in Wisconsin, may not provide EWA services in Wisconsin
unless the provider has been issued a license by the DOB.
The application for a license must include:
• Name of provider
• Business name, if different from provider name
• Address of the provider’s principal office (may be
located outside of Wisconsin)
• Addresses of provider’s offices or retail stories in
Wisconsin (if there are any)
• A brief description of the manner in which the provider
provides the EWA services, if the EWA services are offered
outside of Wisconsin
• Address of provider’s designated agent upon whom
service of process may be made in Wisconsin
• Provider’s federal employer identification number
(FEIN) and
• Any other information required by the DOB.
Providers will also be required to register with the
nationwide mortgage licensing system and registry. Providers
must update information required in the license application
within 15 business days after a material change in the
information. Providers must pay a nonrefundable fee to the
DOB when submitting the license application.
The DOB will not issue a license if the provider fails to
provide the required information or the provider is liable for
delinquent taxes or unemployment insurance contributions.
EWA program requirements
Providers must offer the consumer at least one
reasonable option to obtain the proceeds at no cost to the
consumer. Providers must clearly explain how to elect the no-
cost option.
EWA providers must develop and implement policies
and procedures to respond to questions raised by consumers
and address complaints in a timely manner.
Before entering into an agreement with a consumer
to provide EWA services, the provider must inform the
consumer of his or her rights under the agreement and fully
and clearly disclose all fees associated with EWA services.
Consumers must be informed of any material changes to the
terms and conditions of EWA services before the changes are
April 1, 2024 Volume 26 Issue 7
