Missouri Is Second State to Enact Earned Wage Access Law

Missouri recently became the second state to enact an earned wage access (EWA) law. The law takes effect on August 28, 2023. The law requires EWA providers to register with the state and pay an annual registration fee.

Registered EWA providers in Missouri will be required to:

• Create procedures for managing consumer (employee or worker) questions and complaints
• Identify how the EWA service will be provided
• Explain the notices that employees or workers will receive when they participate
• Specify any fees associated with the EWA service
• Describe how repayment will be managed and reimburse the employee or worker for any overdraft or insufficient funds fee caused by the provider

Nevada is the first state to enact an EWA law.

More States May Follow

Several other states are considering EWA bills, including: California, Georgia, Kansas, Mississippi, New York, North Carolina, Texas, Vermont, and Virginia.

PayrollOrg Spport

PayrollOrg’s Government Relations Task Force (GRTF) urged the governor of Missouri to sign the bill, saying it provides for transparency on fees and is an effective alternative to payday loans and bank overdraft fees.

Interested in more state and local payroll coverage? PayrollOrg’s PayState Update eNewsletter is perfect for you.

Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.