Nevada Passes New Legislation to Require Earned Wage Access Providers to Obtain a License

Nevada has jumped ahead of California in the race to regulate services that allow employees to access their wages before payday.  Nevada has passed legislation requiring earned wage access providers to obtain a license from the state of Nevada, be subject to background checks and other disclosure requirements, and provide at least one option for users to obtain their wages free of charge.  Earned wage access providers are also prohibited from running background checks on users and charging fees for failing to pay outstanding proceeds and cancellation fees.

Notably different than California’s proposed action is that Nevada will not treat the services as lenders, making them subject to regulations that govern entities that loan money.  Nevada also has no state income tax, so no insight into state tax issues has been received.

At least ten other states currently have pending legislation regarding earned wage access providers.  Stay tuned to myHRcounsel’s blog, newsletter, and weekly webinars for up to the minute compliance information that affects your state.