Earned Wage Access Request for Public Comment

NOTICE OF REQUEST FOR PUBLIC COMMENT

The Department of Insurance, Securities and Banking ("DISB" or the "Department") is seeking public comments on how it should regulate Earned Wage Access ("EWA") services.

TO: All Interested Parties

FROM: Karima M. Woods, Commissioner

Department of Insurance, Securities and Banking

Submit comments on or before January 30, 2026

What is EWA?

Earned wage access allows employees to access part of their earned wages before payday. Through financial technology or fintech firms, consumers can access a portion of their paychecks -earned income before payday via an earned wage access service provider. The earned wage access provider may be sponsored or integrated with the consumer's employer or may operate directly with the consumer. Traditional financial institutions may partner with fintech firms or offer similar services, too.

Classification and Regulatory Framework Structure

As with most financial services, using EWA services comes with certain fees and costs. Stakeholders have expressed concerns regarding the nature and transparency of these fees, how frequently individuals rely on EWA services, and whether such products should be classified and regulated as loans or credit. This classification would determine whether they are subject to existing consumer lending laws, including disclosure requirements under the Truth in Lending Act or similar frameworks. The structure of EWA offerings can vary significantly across providers, reflecting differences in business models, funding mechanisms, and partnerships with employers. These variations further complicate efforts to establish consistent regulatory oversight.

DISB, the District of Columbia's primary financial services regulator, has a primary goal to ensure residents have access to a wide choice of financial products and services, while being treated fairly by the companies and individuals that provide these services. Before developing and finalizing any regulatory framework, the Department will consider feedback from the public, consumer advocates, industry stakeholders, employers, and other interested parties. This will be done through an open submission process regarding how the District should regulate EWA products to ensure consumer protection, transparency, and access to safe and affordable financial services.

Both consumer advocates and EWA providers have emphasized the need for a clear, transparent, and balanced regulatory framework that protects consumers while preserving access to flexible financial tools. In recognition of these complexities, the Department will engage in a comprehensive public consultation process. This process will invite input from a broad range of stakeholders -including consumers, advocacy organizations, industry participants, employers, and other interested parties - to inform the development of a regulatory approach tailored to the District's needs. The Department's goal is to ensure that any future regulation of EWA products promotes consumer protection, fosters transparency, and supports access to safe, affordable, and innovative financial services.

Submission Request

DISB is particularly interested in feedback on:

• The benefits and risks of EWA products for District consumers
• Appropriate licensing, registration, or oversight requirements for EWA providers
• Disclosure standards, fee structures, and consumer protections
• Rights of the employee
• The role of employers in facilitating or offering EWA
• How other jurisdictions' approaches to EWA regulation may inform a District framework
• Fee Caps and No-Cost Access Requirements
• Treatment of Voluntary "Tips" and Gratuities
• Frequency and Limits on Advances
• Interchange fees
• Recourse or non-recourse for advance

How to Comment:
Written comments may be submitted to DISB including proposed language draft for consideration in developing a regulatory framework that ensures consumer protection and access to financial services 45 days from the posting of this notice, but no later than Friday, January 30, 2026.

DISB - Office of the Commissioner
Attn: Earned Wage Access Comment
1050 First Street, NE, Suite 801
Washington, DC 20002
Email: [email protected]