NY A00682

Creates a new regulatory framework in New York Banking Law for "on-demand pay providers" (also known as earned wage access services) that deliver funds to workers representing earned but unpaid income

Establishes two categories: "employer-integrated" providers who verify earnings through employer data, and "non-verified" providers who do not have such employer arrangements

Requires employer-integrated providers to register with the superintendent, submit annual audited financial statements, and follow consumer protections including clear fee disclosure, user cancellation rights, and prohibition on collection actions or credit reporting for non-repayment

Classifies non-verified on-demand pay services as loans subject to lending regulations, criminal usury laws, Truth in Lending Act disclosures, and caps interest rates at 10% per year (including all fees)

Imposes penalties of up to $1,000 per violation and exempts compliant employer-integrated providers from money transmitter licensing requirements