Bloomberg Law
March 17, 2023, 8:42 PM

California Aims to Increase Regulations for Earned-Wage Access

Evan Weinberger
Evan Weinberger

California regulators plan to subject earned-wage access firms, income share agreement providers, and other fintech lenders to the state’s consumer financial protection laws and regular examinations.

The California Department of Financial Protection and Innovation’s proposal, released Friday, would for the first time require firms like PayActiv Inc., DailyPay Inc., and Dave Inc. to register with the state to come under the regulator’s oversight.

Such firms, using software and apps, partner with employers to enable workers to get cash advances on their paychecks before payday. Income share agreements are student loans where a borrower repays the lender with portions of ...