NJ S4720

Establishes a licensing framework through the Department of Banking and Insurance for earned income access service providers (companies that advance workers their earned but unpaid wages through employer integrations), requiring annual licensing, background checks, and filing annual reports on transactions and revenue

Defines compliant earned income access services as non-loans when providers verify income through employer contracts and recoup advances by reducing the consumer's next paycheck, exempting them from usury laws; non-compliant services are treated as loans subject to civil and criminal usury statutes and Truth in Lending Act requirements

Prohibits providers from requiring consumers to open specific bank accounts, using credit reports to determine eligibility, reporting repayment history to third parties, charging fees to defer repayment, or holding consumers liable when employers fail to meet payroll obligations

Caps fees and voluntary payments at an average rate to be determined by the department after stakeholder input, requiring providers to reconcile annually and refund any excess charges within 30 days

Sets penalties of up to $5,000 for first violations and up to $15,000 for subsequent violations, with the department authorized to suspend, revoke, or place licenses on probation for fraudulent activity, consumer complaints, or non-compliance