© 2025 American Payroll Institute, Inc.
June 16, 2025 Volume 27 Issue 12
Maryland Earned Wage Access Law to Take Effect October 1
Effective October 1, 2025, earned wage access (EWA)
providers in Maryland will be subject to certain
requirements, including registration requirements [H.B. 1294,
L. 2025]. PayrollOrg’s Government Relations Task Force State
and Local Topics Subcommittee sent a letter to the Maryland
legislature last year expressing support and concerns
regarding provisions in a previous EWA bill.
Definitions
Under the law, a loan includes EWA (subject to the
provisions of the law). Employer-integrated EWA means
delivery of unpaid but earned wages that are provided to a
consumer (employee) directly by a person the employer has
contracted to provide the service that are determined based
on employment, income, or attendance data obtained from
the employer, including a payroll service provider and where
the employee does not pay the provider interest. Interest
does not include a fee imposed by a licensed EWA provider.
A provider does not include a payroll service provider
that may verify an employee’s available earnings but is not
contractually obligated to fund any EWA proceeds or an
employer that offers a portion of salary or wages directly to
its employee (or independent contractor) before a normally
scheduled pay date.
Providers must obtain license
A person may not engage in the business of providing
EWA in the state unless the person is licensed under state
law or is exempt from the licensing requirements. A licensed
EWA provider is exempt from other provisions of state law
governing lending, credit, or debt.
Beginning in 2026, EWA providers will submit a report,
due by July 1, to the Maryland Office of Financial Regulation
(OFR). The report will be used to assess the size and status of
the EWA market in Maryland.
Provider requirements
An EWA provider must:
(1) Develop and implement policies and procedures to
respond to questions raised by employees
(2) Address complaints from employees in a timely
manner
(3) Offer at least one reasonable option to obtain EWA
at no cost, when the provider offers services for a fee or
solicits an optional tip
(4) Clearly explain how to elect the no-cost option
(5) Inform the employee of their rights under the EWA
agreement and fully and clearly disclose all fees associated
with EWA services before entering into an agreement to
provide the EWA services
(6) Inform an employee of any material changes
to the terms and conditions of the EWA services before
implementing those changes for that employee
(7) Allow an employee to cancel EWA services at any
time without a cancellation fee
(8) Provide proceeds by any means mutually agreed
upon with the employee and
(9) Reimburse the employee for the full amount of
any overdraft fees within 5 business days if the provider
seeks repayment of outstanding proceeds or fees from an
employee’s bank account.
Fees
An EWA provider may charge a fee for delivery or
expedited delivery of EWA services. The fees cannot exceed
$5 for any advance of proceeds equal to or less than $75 or
$7.50 for any advance of proceeds greater than $75.
Tips
Tipping is usually more common in the direct-to-
consumer EWA model. If a provider solicits tips, the default
tip must be set at zero. The provider must clearly disclose
to each employee, immediately prior to each transaction,
that any tip paid by the employee does not go to a specific
person working for the provider directly and that tipping is
voluntary. This information must also be included in the EWA
service contract.
Provider prohibitions
EWA providers cannot: share fees with an employer
condition an employee’s ability to get EWA services on
tipping charge an employee a late fee for failure to pay any
proceeds, fees, or tips report an employee’s failure to pay
any proceeds, fees, or tips to a consumer reporting agency
use an employee’s credit report to qualify the employee for
EWA services receive interest from a consumer or compel
payment from an employee via civil action, use of a third-
party collection agency, or sale of outstanding amounts to a
collection agency.
Alaska Paid Sick Leave Law to Take Effect July 1
Last year, voters in Alaska passed Ballot Measure 1, which
will take effect July 1, 2025 (see PAYSTATE UPDATE, Issue
23, Vol. 26). The measure increases the minimum wage to
$13 per hour on July 1, 2025, and establishes paid sick leave
(PSL) requirements. The Alaska Department of Labor and
Workforce Development (DLWD) Labor Standards and Safety
June 16, 2025 Volume 27 Issue 12
Maryland Earned Wage Access Law to Take Effect October 1
Effective October 1, 2025, earned wage access (EWA)
providers in Maryland will be subject to certain
requirements, including registration requirements [H.B. 1294,
L. 2025]. PayrollOrg’s Government Relations Task Force State
and Local Topics Subcommittee sent a letter to the Maryland
legislature last year expressing support and concerns
regarding provisions in a previous EWA bill.
Definitions
Under the law, a loan includes EWA (subject to the
provisions of the law). Employer-integrated EWA means
delivery of unpaid but earned wages that are provided to a
consumer (employee) directly by a person the employer has
contracted to provide the service that are determined based
on employment, income, or attendance data obtained from
the employer, including a payroll service provider and where
the employee does not pay the provider interest. Interest
does not include a fee imposed by a licensed EWA provider.
A provider does not include a payroll service provider
that may verify an employee’s available earnings but is not
contractually obligated to fund any EWA proceeds or an
employer that offers a portion of salary or wages directly to
its employee (or independent contractor) before a normally
scheduled pay date.
Providers must obtain license
A person may not engage in the business of providing
EWA in the state unless the person is licensed under state
law or is exempt from the licensing requirements. A licensed
EWA provider is exempt from other provisions of state law
governing lending, credit, or debt.
Beginning in 2026, EWA providers will submit a report,
due by July 1, to the Maryland Office of Financial Regulation
(OFR). The report will be used to assess the size and status of
the EWA market in Maryland.
Provider requirements
An EWA provider must:
(1) Develop and implement policies and procedures to
respond to questions raised by employees
(2) Address complaints from employees in a timely
manner
(3) Offer at least one reasonable option to obtain EWA
at no cost, when the provider offers services for a fee or
solicits an optional tip
(4) Clearly explain how to elect the no-cost option
(5) Inform the employee of their rights under the EWA
agreement and fully and clearly disclose all fees associated
with EWA services before entering into an agreement to
provide the EWA services
(6) Inform an employee of any material changes
to the terms and conditions of the EWA services before
implementing those changes for that employee
(7) Allow an employee to cancel EWA services at any
time without a cancellation fee
(8) Provide proceeds by any means mutually agreed
upon with the employee and
(9) Reimburse the employee for the full amount of
any overdraft fees within 5 business days if the provider
seeks repayment of outstanding proceeds or fees from an
employee’s bank account.
Fees
An EWA provider may charge a fee for delivery or
expedited delivery of EWA services. The fees cannot exceed
$5 for any advance of proceeds equal to or less than $75 or
$7.50 for any advance of proceeds greater than $75.
Tips
Tipping is usually more common in the direct-to-
consumer EWA model. If a provider solicits tips, the default
tip must be set at zero. The provider must clearly disclose
to each employee, immediately prior to each transaction,
that any tip paid by the employee does not go to a specific
person working for the provider directly and that tipping is
voluntary. This information must also be included in the EWA
service contract.
Provider prohibitions
EWA providers cannot: share fees with an employer
condition an employee’s ability to get EWA services on
tipping charge an employee a late fee for failure to pay any
proceeds, fees, or tips report an employee’s failure to pay
any proceeds, fees, or tips to a consumer reporting agency
use an employee’s credit report to qualify the employee for
EWA services receive interest from a consumer or compel
payment from an employee via civil action, use of a third-
party collection agency, or sale of outstanding amounts to a
collection agency.
Alaska Paid Sick Leave Law to Take Effect July 1
Last year, voters in Alaska passed Ballot Measure 1, which
will take effect July 1, 2025 (see PAYSTATE UPDATE, Issue
23, Vol. 26). The measure increases the minimum wage to
$13 per hour on July 1, 2025, and establishes paid sick leave
(PSL) requirements. The Alaska Department of Labor and
Workforce Development (DLWD) Labor Standards and Safety
