What happened?

On May 25, 2025, Maryland Governor Wes Moore signed House Bill 1294 into law, establishing a comprehensive regulatory framework for Earned Wage Access (EWA) providers operating in the state. 

Overview:

The new law defines permissible EWA practices, introduces licensing requirements, and implements robust consumer protections for both employer-integrated and consumer-directed EWA models.

Highlights of HB 1294 – Maryland Earned Wage Access and Credit Modernization Act:

• Licensing Requirement: All EWA providers must be licensed under Maryland’s Consumer Loan Law unless exempt.

• Oversight: provided by the Office of Financial Regulation (OFR), which will also receive annual reports starting July 1, 2026.

• Oregon Consumer Information Protection Act
  • Anti-Discrimination: AI systems must avoid biased outcomes that discriminate based on protected characteristics.

• Defined EWA Models:
  • Employer-Integrated: Providers contract directly with employers and access payroll data.
  • Consumer-Directed: Providers rely on employment data submitted by workers without employer involvement.

• Non-Loan Classification: EWA services are not considered loans if providers do not charge interest and comply with statutory conditions.

• Consumer Protections:
  • Transactions are non-recourse, and users may cancel at any time.
  • Providers must offer at least one no-cost option for accessing earned wages.
  • Fee caps apply to expedited delivery: $5 for transfers ≤ $75 and $7.50 for transfers > $75.
  • Tips must be voluntary, default to zero, and not affect service terms. Refunds are required if tips result in impermissible interest.
  • Prohibited practices include charging interest, using credit reports, imposing late fees, or pursuing collections or litigation.
  • Providers must clearly disclose all fees, allow penalty-free cancellation, and reimburse overdraft fees caused by failed repayment attempts (unless due to fraud).

Source References

• Maryland HB 1294 – Commercial Law – Credit Regulation – Earned Wage Access and Credit Modernization

Resources

• Maryland Commissioner of Financial Regulation – Guidance on EWA Products

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