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Thursday, February 11, 2021
In between blasts of arctic air and record snow falls, we are starting to see state legislatures emerge from their winter hibernation and introduce new legislation.  With regard to Earned Wage Access (EWA), first out of the cave in 2021 is South Carolina who earlier this week introduced S. 532 which would authorize EWA providers to operate in the state.
The legislation focuses exclusively on employer-integrated business models.  It uses the term “earned income access” instead of “earned wage access” because it covers both employers and other persons who are contractually obligated to pay consumers for labor or services (called “obligors”). This means the bill encompasses independent contractors and the “gig” economy as well as traditional employees.  Under the proposed law, the provision of EWA services would not be considered a form of lending. ....

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