NY A02495

Establishes two categories of on-demand pay providers: employer-integrated providers (verified through employer data) and non-verified providers, with different regulatory requirements for each.

Requires employer-integrated on-demand pay providers to register with the superintendent by submitting name, address, audited financial statements, fee schedules, and privacy policies.

Mandates employer-integrated providers implement complaint procedures, clearly disclose all fees, allow users to cancel without charge, and prohibits initiating collection actions or credit reporting for unpaid advances absent fraud.

Classifies non-verified on-demand pay services as loans subject to article nine licensing requirements, federal Truth in Lending Act disclosures, and capped interest rates not to exceed 10 percent per year.

Exempts employer-integrated on-demand pay providers from money transmitter licensing under article thirteen-B if they comply with the bill's requirements, with violations subject to penalties up to $1,000 per violation.