Navigating The EWA Regulatory Landscape

I. Introduction: EWA on the Precipice

The increasing use of earned wage access ("EWA") by workers in the United States and around the world has helped to bring financial flexibility to many previously constrained by the employer-selected timing of when paychecks are issued.¹ Even critics of some forms of EWA cannot deny its value as a tool that can ease cashflow problems faced by low-wage workers. But regulatory ambiguity has caused uncertainty for EWA products as the industry awaits promised further guidance from the CFPB and watches a few states address the product in a piecemeal fashion. Below, we discuss key considerations in navigating that ambiguity and delivering a solid EWA product to workers.