Effective November 21, 2024, a new law will regulate earned wage access (EWA) services and create registration requirements for EWA providers in South Carolina [S.B. 700, L. 2024]. Kansas, Missouri, Nevada, and Wisconsin have also passed EWA laws.
The state agency in charge of regulation is the South Carolina Department of Consumer Affairs (DCA). EWA is not considered a loan under South Carolina law.
EWA providers will be required to register annually with the DCA. Among other requirements, providers must offer employees at least one reasonable option to get EWA proceeds at no cost. Employees must be allowed to discontinue EWA services at any time without penalty.
Want more information about EWA? Check out PayrollOrg’s Payroll Hot Topic on Earned Wage Access!
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.
