Earned wage access (EWA) programs allow employees to access their already-earned wages before payday. Employer-sponsored EWA programs are typically funded by fees paid by the employee, the employer, or both. Fintech-sponsored direct-to-consumer programs are typically funded by fees for expedited advances and/or tips and usually offer a free option for advances made within one or two days. The programs are a popular and helpful service, letting workers cover bills without waiting for payday.

Multiple states have issued rulings that affect EWA or have passed or are considering EWA-related statutes. As of December 2025, three states treat EWA advances as loans (or “credit”), and nine states have passed EWA laws providing that EWA advances are not loans. Whether the law should treat EWA advances as loans is doubtful: resolving the legal issue (so far) depends on details of state law. As a policy matter, treating EWA as lending is problematic because lending is so heavily regulated.

When EWA advances are treated as loans, lender licensing laws and interest rate caps may apply, reducing EWA availability. In Connecticut, for example, a 2024 ruling that employers offering EWA must be licensed discouraged employers from offering EWA. State laws limiting the assignment of wages may also restrict EWA offerings. When EWA programs are unavailable, workers resort to higher-cost options or struggle to pay bills.

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