Kansas is the fourth state to enact an earned wage access (EWA) law [H.B. 2560, L. 2024]. The new law defines terms, requires EWA providers to be licensed in the state, and sets requirements for EWA services. EWA services are not considered a loan under Kansas law.
The law took effect April 19, but providers that were doing business in Kansas as of January 1, 2024, can continue to do. Providers must submit an application for registration within three months after the registration form is made available by the Kansas Office of the Banking Commissioner.
Providers are required to provide all payments on a non-recourse basis and must treat all fees as non-recourse payment obligations. Non-recourse means that the provider will not compel repayment by certain methods. Before entering into an agreement to provide EWA services, the provider must inform the employee of their rights, disclose all fees, and clearly describe how payments can be obtained at no cost.
Missouri, Nevada, and Wisconsin also have EWA laws. Learn more about EWA on PayrollOrg’s Earned Wage Access Hot Topic page. Check out PayrollOrg’s EWA report, updated for 2024!
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.