First Of Its Kind CA EWA Legal Opinion
FlexWage is the only solution on the market that can operate freely and without license in CA
The legal opinion from California’s DFPI states that, “for its EWA solution, neither FlexWage nor its employer partners are subject to licensing requirements by the California Financing Law (CFL) or California Deferred Deposit Transaction Law (CDDTL).
KS EWA Legal Opinion
FlexWage does not require supervised loan license in Kansas.
“This determination is based on employer funding, no advancement of unearned wages, and the lack of a repayment obligation. Since access to already earned wages are employer funded, FlexWage is not creating a debt for the employee. The fee structure for data services to ensure this process was also considered.”
CT EWA Legal Opinion
Small loan company licensure will not be required by FlexWage to continue offering its earned wage access product in Connecticut
- “Monies paid to employees before payday are always employer‐funded and never paid by FlexWage and constitute earned wages that are never repaid by the consumer to the employer or FlexWage. In this scenario, since neither FlexWage nor the employer provides a loan of money or extension of credit, or a purchase or advance of money, to a consumer”
VT EWA Legal Opinion
Lender or money transmitter licensure will not be required by FlexWage to offer earned wage access products in Vermont
- “Based on the information FlexWage has provided, and as more fully discussed below, the Banking Division would not recommend that the Commissioner of Financial Regulation (“Commissioner”) require a lender license or a money transmitter license or otherwise take action against FlexWage were it to provide EWA services to Vermont employers and employees as described herein.”
FlexWage
Background
Onboarding & Support
Earned Wage Access (EWA)
Powered by FlexWage OnDemand Pay
Your EWA program is safe, secure, and compliant. With the FlexWage EWA program, your employees get quick and easy access to wages they’ve earned, helping them feel less stress and more in control of their finances.
Three-Phased Launch Program
- FlexWage helps you plan and launch your Earned Wage Access (EWA) Program.
- The Program Launch has three phases:
- Pre-Launch
- Launch
- Management
Management & Administration Support
To support your ongoing promotion of EWA, FlexWage provides you with:
- Daily monitoring of data integration integrity
- Administration support to assist with overall program management
- Monthly client management meetings and KPIs
- Program statistics reports
- New features and enhancements
Training Tools
Manager Training Deck
OnDemand Pay FAQs
Manager Talking Points
Engagement Tools
Examples include:
- Employee training decks and recorded webinars
- Employee posters
- Employee flyers
- Email campaigns
YOUR support is KEY to employee
adoption!
Support
Administration support includes:
- Daily monitoring of data integration integrity
- Program statistics reports
- Overall program management and regular client management meetings
Employee support includes 24-7-365 phone support in English or Spanish languages
Federal & State Regulatory Compliance
Consumer Financial Protection Bureau (CFPB) Regulations
1. Payroll card Is not linked to a loan (Per CFPB)
Fair Labor Standards Act |(FLSA) Regulations
1. No third-party ACH payments to employees creating potential wage payment delay
2. EWA shown as line-item deduction on wage statement
3. EWA benefit program includes taxes in net wage calculation
4. Taxes paid on the originally schedule pay date
U.S. and State Department of Labor (DoL) Regulations
1. EWA is an allowable wage deduction (verify terms and conditions and state DoL laws)
2. EWA does not violate DoL wage assignment
3. Payroll card not mandatory (per state DoL mandates)
Federal and/or State Financing Laws
1. EWA not considered a loan (per state financing laws)
2. EWA repayment and direct deposit withdrawals does not create overdraft fees
3. EWA fees are not considered junk fees (verify state and federal regulatory laws)
State Money Transmitting Licensing Requirements
1. No issues with licensed money transmittal (per state money transmitting licensing requirements)
Contact
Jon Anderson
FlexWage has more than ten years of experience operating Earned Wage Access programs on behalf of employers and licensed partners.