AFC strongly supports Nevada Senate Bill 290 (SB 290) sponsored by Senators Nicole Cannizzaro and Roberta Lange that create important consumer protection safeguards while allowing employees to access wages that have already been earned

AFC joined its members in Carson City to testify before the Nevada State Senate and State Assembly on behalf of the legislation

Carson City, NV (June 13, 2023) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies creating critical access to safe and affordable financial services has asked Governor Joe Lombardo to sign Senate Bill 290. Sponsored by Nevada State Senators Nicole Cannizzaro and Roberta Lange, this bill will ensure transparency, implement key safeguards, and create important standards for earned wage access (EWA) providers to protect Nevada consumers.

“Earned wage access provides a needed and affordable alternative to high-cost credit and debt options in the marketplace,” said Gerron Levi, SVP, Head of Government Affairs at AFC in her testimony before the Nevada Assembly Committee on Commerce and Labor. “AFC fully supports the state setting standards and parameters for responsible providers and responsible use of this product, and that honors key features and principles…allowing workers to access their wages early is an option that Nevada consumers deserve.”

In a recent letter to Governor Joe Lombardo, AFC urged immediate signage of the legislation citing research finding that earned wage access reduces employee turnover by 50%, employee absenteeism by 26%, and the time to fill open jobs by 52%. Employees are 56% more motivated to pick up extra shifts. Earned wage access also helped consumers avoid and replace more expensive financial strategies, saving EWA users between approximately $600 and $900 per year.

“Nevada's bill sets a high standard for EWA regulation and would be the first bill signed in the country,” said Molly Jones, Vice President of Government Affairs at Payactiv. “It creates a number of strong consumer protections that do not exist today, including protections for models that cause overdraft, numerous safeguards not contemplated in existing credit laws, and numerous limits on fees.”

“Employees appreciate this new option because in today’s modern economy, Nevada residents, like most Americans, expect life on-demand,” wrote AFC in their letter. “In addition, nearly three quarters of Americans today live paycheck to paycheck. But bills and emergencies do not wait every two weeks or once a month for an employer to run payroll. EWA solves for these disconnects by facilitating access to already earned wages - not future wages - for a low, flat, ATM-like fee.” ‍

Read the full letter here.