The APA Director of Government Relations Alice Jacobsohn, Esq., testified before a joint Utah House and Senate study committee in May on earned wage access (EWA), also known as on-demand pay. She explained the APA’s position on employer-integrated EWA and the role of payroll professionals.
APA’s EWA Position
The APA supports retaining the existing legal framework regardless of available EWA programs. In context, employers with EWA programs must comply with all wage and hour requirements no differently than regular payroll period management. Employers must also ensure that sufficient funds are available on payday for legal withholding. The applicability of employment and financial laws and regulations depends on the model.
In employer-integrated EWA programs, payroll managers provide the data on earnings to minimize the risk of mistakes when vendors calculate early wage amounts. A well-designed EWA program is transparent in providing employers and employees with detailed information on how the program works with full disclosure of payroll impacts and fees before program start and employee sign up.
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Alice P. Jacobsohn, Esq., is Director of Government Relations for the APA.
