§3591.2. Definitions

            As used in this Chapter, the following terms have the following meanings ascribed to them:

            (1) "Consumer" means a natural person residing in this state. A provider may use the mailing address provided by a consumer or the consumer's employer to determine the consumer's state of residence.

            (2) "Consumer-directed earned wage access services" means the business of delivering to consumers access to earned but unpaid income based on the consumer's representation and the provider's reasonable determination of the consumer's earned but unpaid income.

            (3) "Earned but unpaid income" means the salary, wages, compensation, or other income that a consumer or an employer has represented and, that a provider has reasonably determined, has been earned or has accrued to the benefit of the consumer in exchange for the consumer's provision of services to an employer or on behalf of an employer, including services provided on an hourly, project-based, piecework, or other basis or when the consumer is an independent contractor of the employer, but, which has not, at the time of the payment of proceeds, been paid to the consumer by the employer.

            (4) "Earned wage access services" means consumer-directed earned wage access services or employer-integrated earned wage access services, or both.

            (5) "Employer" means a person who employs a consumer or any other person who is contractually obligated to pay a consumer's earned but unpaid income in exchange for a consumer's provision of services to the person or on behalf of the person, including but not limited to a consumer who is employed on an hourly basis, a project-based, a piecework, or other basis or as independent contractor with respect to the person. "Employer" does not mean a customer of an employer or any other person whose obligation to make a payment of salary, wages, compensation, or other income to a consumer is not based on the provision of services by the consumer for or on behalf of the person.

            (6) "Employer-integrated earned wage access services" means the business of delivering to consumers access to earned but unpaid income that is based on employment, income, and attendance data obtained directly or indirectly from an employer, including without limitation an employer's payroll service provider.

            (7) "Fee" means a charge imposed by a provider for delivery or expedited delivery of proceeds to a consumer, a subscription or membership charge imposed by a provider for a bona fide group of services that include earned wage access services, or an amount paid by an employer to a provider on a consumer's behalf, which entitles the consumer to receive proceeds at reduced or no cost to the consumer. "Fee" does not mean a voluntary tip, gratuity, or donation.

            (8) "Outstanding proceeds" means a payment of proceeds to a consumer by a provider that has not yet been repaid to that provider.

            (9) "Proceeds" means a payment to a consumer by a provider that is based on earned but unpaid income.

            (10) "Provider" means a person that is engaged in the business of offering and providing earned wage access services to consumers. "Provider" does not include any of the following:

            (a) A service provider, such as a payroll service provider, whose role may include verifying the available earnings but who is not contractually obligated to fund proceeds delivered as part of an earned wage access service.

            (b) An employer that offers a portion of salary, wages, or compensation directly to his employees or independent contractors prior to the normally scheduled pay date.

            (c) An entity that offers or provides earned wage access services and reports a consumer's payment or nonpayment of outstanding proceeds, fees, or voluntary tips, gratuities, or other donations solely attributable to the earned wage access services to a consumer reporting agency, as defined in Section 603(p) of the federal Fair Credit Reporting Act, 15 U.S.C. 1681a(p).

            Acts 2025, No. 496, §1.