WI: Joint Letter to Committee in Support of Passing Earned Wage Access Legislation

Wisconsin Assembly Committee on Financial Institutions
P.O. Box 8952, State Capitol
Madison, Wisconsin 53708

Re: Support for the passage of earned wage access legislation

Dear Honorable Committee Members:

Thank you for the opportunity to express our strong support for the preliminary draft bill to regulate earned wage access (EWA) that creates a licensing system for EWA providers in the state.

EWA is a new and innovative industry that allows workers to access their earned pay on their schedule without waiting until payday. By enabling Wisconsin workers to access their own, already-earned wages at little or no cost before payday, EWA provides a valuable service that allows them to manage their household finances on their terms.

It is estimated that over 90,000 Wisconsin residents have used an EWA product, and over 725 employers offer it to their employees. Research shows that this helps businesses to greatly reduce employee turnover, employee absenteeism, and the time to fill open positions.

Without this critical service, Wisconsin workers would have to wait weeks to see the benefits of working an extra shift, but with EWA, they can access those funds immediately. Accessing their pay is also a responsible alternative to traditional, high-cost financial products if an unexpected bill needs to be paid between bi-weekly or monthly paychecks.

After nearly ten years of service in Wisconsin to businesses and their employees, it is time to codify operating rules and requirements for the EWA industry. To do so will create meaningful benefits for consumers, protect against bad actors, and provide regulatory clarity for the wide range of entities engaged in this innovative and important industry.

We urge you to pass earned wage access legislation to create a new license for EWA providers that will protect Wisconsin workers and help Wisconsin business owners thrive, while simultaneously promoting innovation and creating regulatory clarity for the EWA industry to grow.‍

Sincerely,

American Fintech Council
Phil Goldfeder, CEO

Chamber of Progress
Kouri Marshall, Director, State and Local Public Policy Central Region

Cleo
Neela Kiely, Head of Legal and Compliance

Cross River
Joseph N. Garba, Head of External Affairs

DailyPay
Jared DeMatteis, Chief Legal & Strategy Officer

EarnIn
David Durant, General Counsel

Financial Technology Association
Penny Lee, President & CEO

Immediate
Michael Orme, COO

Payactiv
Aaron Marienthal, General Counsel

WageStream
Kevin Lefton, Head of Legal & Regulatory, North America

ZayZoon
Garth McAdam, General Counsel