AL SB281

Adds Chapter 30 to Title 5 of Alabama Code establishing regulatory framework for earned wage access services providers, which allow employees to access earned but unpaid income before normal pay dates.

Exempts earned wage access services providers from lending, money transmission, and debt collection laws if they comply with consumer protection requirements and refrain from prohibited practices.

Requires providers to disclose all fees upfront, allow free cancellation, provide at least one no-cost option for accessing proceeds, comply with Electronic Fund Transfer Act, and reimburse consumers for overdraft fees caused by provider error.

Prohibits providers from using civil suits, third-party collectors, or debt sales for repayment; charging late fees, interest, or finance charges; requiring credit checks; or conditioning service eligibility on payment of optional tips or donations.

Effective October 1, 2025.