Louisiana Joins List of States Regulating Earned Wage Access

Louisiana is the latest state to enact a law regulating earned wage access services, under an act effective Aug. 1.

EWA services allow employees and independent contractors residing in Louisiana to receive payments, called “proceeds,” from providers offering such services, under the Louisiana Earned Wage Access Services Act. The proceeds are based on a worker’s earned but unpaid income and provide a way for them to access funds in advance of their regular payday. Providers recoup the cost of proceeds at a future date and can earn additional revenue by charging fees or soliciting tips, under the act.

Louisiana distinguishes between consumer-directed and employer-integrated EWA services, under the act. Consumer-directed EWA services base proceed amounts on an individual’s representation and the provider’s determination of the individual’s earned but unpaid income, according to the act. The employer-integrated variant bases proceeds on employment, income, and attendance data from an individual’s employer or the employer’s payroll service providers.

Although employer-integrated EWA services require collaboration between employers and providers, the act restricts providers from sharing any fees or tips with employers. However, employers may choose to pay provider fees on their employees’ behalf.

The act contains consumer protections, such as the mandatory disclosure of any fees and requiring providers to offer at least one free method of receiving proceeds. Providers are also limited in their methods for recouping outstanding proceed amounts, the ways they advertise their services, and the type of fees they charge, under the act.

Late fees, cancellation fees, deferral fees, interest, and charges for failing to repay outstanding proceeds are prohibited, under the act.

If a provider does charge fees, including transaction fees, membership fees, and fees for expedited delivery of proceeds, it must submit an annual report to the Louisiana Office of Financial Institutions by March 1. The report will include information on the provider’s revenue, the total number of consumers and EWA transactions performed, the total amount of proceeds provided to consumers, and the amount of fees and tips collected. The office is to make this data publicly available in annual reports that analyze the impact of EWA services in the state.

Providers are protected against any state violations of minimum wage, overtime, and wage deduction laws as long as they comply with the act.

The act became law July 1 without the signature of Gov. Jeff Landry (R). Louisiana is the fifth state in 2025 to enact an earned wage access law, after Maryland, Utah, Arkansas, and Indiana.