13-78 - Earned Wage Access Services Act
Title 13 > 13-78
Sections (6)
13-78-101 - Definitions.
13-78-101(1) “Consumer” means an individual who resides in the state. 13-78-101(2) “Earned but unpaid income” means compensation, including salary, wages, or other income, that is:earned or accrued by a consumer through services provided to an employer or as an independent contractor; andnot paid yet to the consumer by the employer or hiring party. 13-78-101(3) “Earned wage access services” means the payment of funds to a consumer determined by:a consumer’s representation; andthe provider’s reasonable determination of earned but unpaid income; oremployment, income, and attendance data obtained directly or indirectly by a provider from an employer or an employer’s payroll service provider. 13-78-101(4) “Fee” means a charge the provider imposes on a consumer for earned wage access services, expedited delivery of funds, or a subscription or membership that includes earned wage access services.”Fee” does not include a voluntary tip, gratuity, or donation. 13-78-101(5) “Provider” means a person engaged in the business of offering earned wage access services.”Provider” does not include:a service provider, such as a payroll service provider, that verifies, but does not fund, earned wages;an employer that advances a portion of earned wages directly to employees or independent contractors; ora person regulated under Title 7, Financial Institutions Act.
13-78-102 - Provider registration and registration renewal.
13-78-102(1) Except as provided in Subsection (4), a person may not act as a provider without registering with the division. 13-78-102(2) To register as a provider, a person shall submit to the division a registration application:in the manner the division determines; andthat includes:a registration application fee in an amount the division determines in accordance with Sections 13-1-2 and 63J-1-504;a copy of the agreement for earned wage access services the provider uses with a consumer; andany information that the division requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. 13-78-102(3) Each year a provider shall renew the provider’s registration by submitting to the division an application for registration renewal:in a manner the division determines; andthat includes:a registration renewal application fee in an amount the division determines in accordance with Sections 13-1-2 and 63J-1-504; andany information the division requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. 13-78-102(4) A person that acts as a provider on May 7, 2025, may continue to act as a provider:if the person:applies for registration in accordance with this section on or before October 6, 2025; andcomplies with the requirements of this chapter; anduntil the day on which the division issues a decision on the registration application after which:a person for which a registration application is denied may no longer operate; anda person for which a registration application is granted may operate as provider. 13-78-102(5) The division shall require a provider’s principal to:submit a fingerprint card in a form acceptable to the division; andconsent to a criminal background check by:the Federal Bureau of Investigation;the Utah Bureau of Criminal Identification; oranother agency of any state that performs criminal background checks.The provider shall pay the cost of:the fingerprint card described in Subsection (5)(a)(i); andthe criminal background check described in Subsection (5)(a)(ii). 13-78-102(6) The division may grant or deny the registration application or the renewal application in accordance with Section 13-78-105.
13-78-103 - Regulation of earned wage access services.
13-78-103(1) A provider is exempt from Title 7, Financial Institutions Act, and Title 12, Collection Agencies. 13-78-103(2) A provider shall:develop and implement procedures to address consumer questions and complaints;before entering into an agreement for earned wage access services with a consumer, clearly and conspicuously disclose:the consumer’s rights under the agreement;all fees; andany voluntary tip, gratuity, or donation opportunities;obtain customer consent to changes to terms and conditions of the earned wage access services; orclearly and conspicuously disclose any material changes to terms and conditions of the earned wage access services at least 30 days before the effective date of the material changes;allow a consumer to cancel the use of earned wage access services at any time without incurring a penalty;offer at least one no-fee option to receive funds and clearly and conspicuously disclose how to select the no-fee option to receive funds;comply with all applicable local, state, and federal privacy and information security laws;deliver funds through any method agreed upon by the consumer and provider;reimburse overdraft or non-sufficient fund fees the consumer incurs as a result of the provider’s error in disclosed or actual payment amount or payment date unless the funds were acquired by a consumer through fraudulent means;clearly and conspicuously disclose the voluntary nature of tips, gratuities, or donations and ensure the availability or terms of the earned wage access services are not contingent upon the payment of tips, gratuities, or donations;provide information to a consumer on how to file a complaint with the division;provide the following disclosures to a consumer at the time the consumer makes a request for funds:the anticipated timeline the consumer will receive the requested funds;the amount of funds the consumer has requested;the amount of the fee charged;the amount of funds the consumer will receive;the account that will receive the funds; andthe date the provider is authorized to withdraw funds from the consumer’s account, including fees and voluntary payments; andbefore initiating an advance, require the customer to acknowledge receiving the opportunity to view all disclosures listed in Subsection (2)(k) and any costs and fees. 13-78-103(3) A provider may not:compel a consumer to repay funds by:using or threatening to use civil lawsuits, outbound calls, third-party collections, or debt sales;reporting or threatening to report nonpayment to consumer reporting agencies; orcharging or threatening to charge interest, finance charges, late fees, or other penalties for nonpayment;use a consumer’s credit report or credit score as defined by 15 U.S.C. Sec. 1681 et seq., to determine eligibility for earned wage access services;accept payment with a credit card or charge card;condition receipt of funds based on fees, tips, gratuities, or donations;mislead a consumer about the voluntary nature of tips, gratuities, or donations;charge a consumer a fee, interest, or any other penalty for failure to repay outstanding proceeds, fees, tips, or gratuities; orprovide earned wage access services in this state without first registering with the division. 13-78-103(4) Each act performed in violation of Subsection (3) is a separate violation of this chapter. 13-78-103(5) The provider may prohibit a consumer from requesting a transaction if the consumer has outstanding unpaid proceeds from a previous transaction with the provider. 13-78-103(6) A provider is not entitled to the exemption described by Subsection 13-11-22(1)(d).
13-78-104 - Penalties and enforcement — Powers — Legal counsel — Fees.
13-78-104(1) The attorney general, upon request, shall give legal advice to, and act as counsel for, the division in the exercise of the division’s responsibilities under this chapter. 13-78-104(2) In addition to the division’s enforcement powers under Chapter 2, Division of Consumer Protection:the division director may impose an administrative fine of up to 2,500 for each violation of this chapter; oraward any other relief that the court deems reasonable and necessary. 13-78-104(3) If a court grants judgment or injunctive relief to the division, the court shall award the division:reasonable attorney fees;court costs; andinvestigative fees. 13-78-104(4) A person that violates an administrative or court order issued for a violation of this chapter is subject to a civil penalty of no more than $5,000 for each violation.The court may impose a civil penalty authorized under this section in any civil action brought by the attorney general on behalf of the division. 13-78-104(5) The division shall deposit money received for the payment of a fine or civil penalty imposed under this section into the Consumer Protection Education and Training Fund created in Section 13-2-8.
13-78-105 - Denial, suspension, or revocation of provider registration.
13-78-105(1) the division finds that the denial, suspension, or revocation is in the public interest; and 13-78-105(2) the registration is incomplete, false, or misleading; orthe provider or the provider’s principal has:violated, caused a violation, or allowed a violation of a provision of:this chapter; ora rule made by the division under this chapter;violated Chapter 11, Utah Consumer Sales Practices Act;been enjoined by a court, or is the subject of an administrative or judicial order issued in Utah or another state, if the order:includes a finding or admission of fraud, breach of fiduciary duty, or material misrepresentation; orwas based on a finding of lack of integrity, truthfulness, or mental competence;been convicted of a crime involving theft, fraud, or dishonesty;obtained or attempted to obtain a registration by misrepresenting any material fact;failed to provide information the division requests;failed to pay an administrative fine that the division or an administrative or judicial order imposed;failed to pay the fee to file a registration application or a renewal application; orfailed to satisfy the requirements of this chapter or rule made by the division under this chapter.
13-78-106 - Applicability.
13-78-106(1) A provider offering or providing earned wage access services in this state:does not violate state law governing deductions from payroll, salary, wages, compensation, or other income or the purchase, sale or assignment of, or an order for earned but unpaid income;is not offering a loan or other form of credit or debt, if the provider is not a creditor, a debt collector, or a lender; oris not offering a money transmission, if the provider is not a money transmitter. 13-78-106(2) Fees, voluntary tips, gratuities, or other donations paid to the provider, in accordance with this chapter, are not interest or finance charges.