House Bill 866: Earned Wage Access Services Summary

• Creates new Article 26 in Chapter 53 of North Carolina General Statutes to establish a regulatory framework for earned wage access service providers offering advances on workers' earned but unpaid wages.

• Requires all providers to register with the Commissioner of Banks and mandates non-recourse lending (providers cannot pursue civil suits, use third-party collectors, or sell debt for non-fraudulent cases).

• Prohibits providers from requiring non-mandatory payments, charging late fees, conditioning advance amounts on fees paid, reporting to credit agencies, or requiring credit checks for eligibility.

• Allows only non-mandatory payments including delivery fees (if free option available), employer-paid subsidies, subscription/membership fees (if free option available), and tips/gratuities (if free option available); providers may charge a percentage-based fee as long as the percentage doesn't vary by transaction size.

• Requires annual reporting to the Commissioner on revenue, transaction counts, consumer numbers, repayment rates, and other financial data; establishes civil penalties of up to $1,000 per violation or $10,000 for willful violations; takes effect October 1, 2024.