NY A10309

Creates Article 9-B of Banking Law to regulate on-demand pay providers that deliver earned but unpaid income to users in New York State

Establishes two categories of on-demand pay providers: employer-integrated (verified through employer data) and non-verified, with employer-integrated providers subject to lighter regulation including registration requirements and operational standards but exemption from money transmitter licensing

Treats non-verified on-demand pay services as loans subject to article nine licensing requirements, Truth in Lending Act disclosures, and usury laws, while employer-integrated services are not considered loans

Requires employer-integrated providers to register with superintendent, submit annual financial statements and consumer complaint records, clearly disclose fees, allow free cancellation, and prohibit sharing fees with employers or collection actions absent fraud

Imposes penalties of up to $1,000 per violation for violations of the article, effective 90 days after enactment