Connecticut Issues Earned Wage Access Guidance for Employers

The Connecticut Labor Department’s Wage and Workplace Standards Division released legal guidance on May 10 for employers that wish to use earned wage access products with their employees.

The division distinguishes between two types of earned wage access products: third-party advances and employer advances.

Third-party advances are agreements between employees and third-party providers only, according to the guidance. Employers must deduct any advances and associated fees through payroll deductions and send them to the third-party provider on the next scheduled payday.

Under employer advances, a third-party provider makes employees’ hours worked and wages earned transparent to employees who can ...