Florida Senate - 2025 SB 422
By Senator Trumbull
2-00915A-25 2025422__
1 A bill to be entitled
2 An act relating to earned wage access services;
3 creating s. 437.01, F.S.; providing a short title;
4 creating s. 437.02, F.S.; defining terms; creating s.
5 437.03, F.S.; requiring providers to register with the
6 Financial Services Commission; providing registration
7 requirements; requiring a provider to display its
8 registration certificate; providing for renewal of
9 such certificate; providing requirements with which a
10 provider must comply; specifying mechanisms by which
11 registrations may be denied, not renewed, or revoked;
12 requiring the commission to deny, refuse to renew, or
13 revoke a registration certificate under certain
14 circumstances; creating s. 437.04, F.S.; providing
15 requirements with which a provider must comply;
16 prohibiting certain acts by a provider; requiring a
17 provider offering consumer-directed earned wage access
18 services to comply with certain requirements; creating
19 s. 437.05, F.S.; providing construction and
20 applicability; creating s. 437.06, F.S.; providing
21 administrative penalties; providing construction;
22 authorizing the Financial Services Commission to adopt
23 rules; requiring the commission, by a date certain, to
24 prescribe the form and content of an application for
25 registration; authorizing a person who previously
26 provided earned wage access services to continue for a
27 specified time without registering under certain
28 conditions; specifying applicability; providing
29 effective dates.
30
31 Be It Enacted by the Legislature of the State of Florida:
32
33 Section 1. Section 437.01, Florida Statutes, is created to
34 read:
35 437.01 Short title.—This chapter may be cited as the
36 “Florida Earned Wage Access Services Act.”
37 Section 2. Section 437.02, Florida Statutes, is created to
38 read:
39 437.02 Definitions.—As used in this chapter, the term:
40 (1) “Business entity” means a corporation, a limited
41 liability company, a partnership, an association, or any other
42 commercial entity.
43 (2) “Commission” means the Financial Services Commission
44 created by s. 20.121(3).
45 (3) “Consumer” means a person who resides in this state.
46 (4) “Consumer-directed earned wage access services” means
47 the business of delivering to consumers access to earned but
48 unpaid income that is based on the consumer’s representations
49 and the provider’s reasonable determination of the consumer’s
50 earned but unpaid income.
51 (5) “Director” means a person on the provider’s board of
52 directors.
53 (6) “Earned but unpaid income” means salary, wages,
54 compensation, or other income that a consumer or an employer has
55 represented, and that a provider has reasonably determined has
56 been earned or accrued to the benefit of the consumer, in
57 exchange for the consumer’s provision of services to the
58 employer or on behalf of the employer, including on an hourly
59 basis, a project-based basis, a piecework basis, or any other
60 basis and including circumstances in which the consumer is
61 acting as an independent contractor of the employer, but that
62 has not, at the time of the payment of proceeds, been paid to
63 the consumer by the employer.
64 (7) “Earned wage access services” means the business of
65 providing consumer-directed earned wage access services or
66 employer-integrated earned wage access services, or both.
67 (8)(a) “Employer,” except as provided in paragraph (b),
68 means either of the following:
69 1. A person who employs a consumer.
70 2. A person who is contractually obligated to pay a
71 consumer earned but unpaid income in exchange for the consumer’s
72 provision of services to the employer or on behalf of the
73 employer, including working on an hourly basis, a project-based
74 basis, a piecework basis, or any other basis and including
75 circumstances in which the consumer is acting as an independent
76 contractor of the employer.
77 (b) The term does not include the following:
78 1. A customer of an employer.
79 2. Any other person whose obligation to make a payment of
80 salary, wages, compensation, or other income to a consumer is
81 not based on the provision of services by that consumer for or
82 on behalf of the person.
83 (9) “Employer-integrated earned wage access services” means
84 the business of delivering to consumers access to earned but
85 unpaid income that is based on employment, income, or attendance
86 data obtained directly or indirectly from an employer.
87 (10) “Fee” means a payment imposed by a provider for
88 delivery or expected delivery of proceeds to a consumer or a
89 subscription or membership payment imposed by a provider for a
90 bona fide group of services which includes earned wage access
91 services. The term does not include a voluntary tip, gratuity,
92 or other donation.
93 (11) “Key officer” means the chief executive officer, chief
94 financial officer, or chief compliance officer of a business
95 entity.
96 (12) “Member” means a person who has the right to receive
97 upon dissolution, or who has contributed, 10 percent or more of
98 the capital of a provider that is organized as a limited
99 liability company.
100 (13) “Outstanding proceeds” means proceeds remitted to a
101 consumer by a provider which have not yet been repaid to the
102 provider.
103 (14) “Partner” means a person who has the right to receive
104 upon dissolution, or has contributed, 10 percent or more of the
105 capital of a provider that is organized as a partnership.
106 (15) “Proceeds” means a payment to a consumer by a provider
107 which is based on earned but unpaid income.
108 (16) “Provider” means a business entity that is in the
109 business of providing earned wage access services to consumers.
110 The term does not include:
111 (a) A service provider, such as a payroll service provider,
112 whose role may include verifying available earnings but which is
113 not contractually obligated to fund proceeds as part of an
114 earned wage access service; or
115 (b) An employer that offers to provide a portion of salary,
116 wages, or other compensation before the normally scheduled pay
117 date.
118 Section 3. Section 437.03, Florida Statutes, is created to
119 read:
120 437.03 Registration and certificate renewal.—
121 (1) Each provider must register with the commission by
122 submitting all of the following information:
123 (a) The provider’s legal business name, trade name, mailing
124 address, and business locations.
125 (b) The full names and mailing addresses of the provider’s
126 partners, members, directors, or key officers and the designated
127 agent for service of process for the business entity.
128 (c) A statement documenting whether the provider is a
129 domestic or foreign business entity.
130 (d) The name of the state in which and the date on which
131 the business entity was formed or incorporated. If applicable,
132 the business entity must provide its charter number and, if a
133 foreign corporation, the date it registered with the Department
134 of State.
135 (e) If the provider operates under a fictitious name, the
136 date on which the provider registered its fictitious name with
137 the Department of State.
138 (2) The commission shall issue a certificate evidencing
139 proof of registration, which the provider must prominently
140 display at its primary place of business. If the provider
141 conducts business through a website, the provider must post a
142 copy of its certificate or provide its registration number on
143 the website.
144 (3) A provider must renew its certificate biennially on or
145 before the expiration date. The commission may extend the
146 expiration date of a provider’s certificate for up to 1 year in
147 order to establish staggered expiration dates.
148 (4) A certificate issued under this section is not
149 assignable, and the provider may not conduct business under more
150 than one name, unless such name is registered. A provider must
151 notify the commission if the provider changes its registered
152 name, location, or designated agent for service of process.
153 (5) The commission may deny, refuse to renew, or revoke the
154 certificate of any provider based upon a determination that the
155 provider, or any of the provider’s partners, members, directors,
156 or key officers, has:
157 (a) Failed to meet the requirements for registration as
158 provided in this section;
159 (b) Been convicted of a crime involving fraud, dishonest
160 dealing, or any other act of moral turpitude;
161 (c) Not satisfied a civil fine or penalty arising out of an
162 administrative or enforcement action brought by a governmental
163 agency or private person based upon conduct involving fraud,
164 dishonest dealing, an act of moral turpitude, or a violation of
165 this chapter which has not been satisfied;
166 (d) Pending against it any criminal, administrative, or
167 enforcement proceeding based upon conduct involving fraud,
168 dishonest dealing, or any other act of moral turpitude in any
169 jurisdiction; or
170 (e) Had a judgment entered against it in an action brought
171 by the commission or the Department of Legal Affairs under this
172 chapter or the Florida Deceptive and Unfair Trade Practices Act.
173 (6) The commission must deny, refuse to renew, or revoke
174 the certificate of a provider or deny a registration or renewal
175 request by any of the provider’s partners, members, directors,
176 or key officers if the provider has not satisfied a civil
177 penalty or administrative fine imposed for a violation of s.
178 437.04.
179 Section 4. Section 437.04, Florida Statutes, is created to
180 read:
181 437.04 Provider requirements and prohibitions.—
182 (1) A provider registered under s. 437.03 must do all of
183 the following:
184 (a) Develop and implement policies and procedures to
185 respond to questions raised by consumers and to address
186 complaints from consumers in an expedient manner.
187 (b) If the provider offers a consumer the option to receive
188 proceeds for a fee or solicits a tip, gratuity, or other
189 donation, it must offer the consumer at least one reasonable
190 option to obtain proceeds at no cost to the consumer and clearly
191 explain how to elect the no-cost option.
192 (c) Before entering into an agreement with a consumer for
193 the provision of earned wage access services:
194 1. Inform the consumer of his or her rights under the
195 agreement.
196 2. Clearly disclose all fees associated with the earned
197 wage access services.
198 (d) Inform the consumer of any material changes to the
199 terms and conditions of the earned wage access services before
200 implementing such changes for that consumer.
201 (e) Allow the consumer to cancel use of the provider’s
202 earned wage access services at any time without incurring a
203 cancellation fee imposed by the provider.
204 (f) Comply with all applicable local, state, and federal
205 privacy and information security laws.
206 (g) If a provider solicits, charges, or receives a tip,
207 gratuity, or other donation from a consumer, the provider must
208 do the following:
209 1. Clearly and conspicuously disclose to the consumer
210 immediately before each transaction that a tip, gratuity, or
211 other donation amount may be zero and is voluntary.
212 2. Clearly and conspicuously disclose in its service
213 agreement with the consumer that tips, gratuities, or donations
214 are voluntary and that the offering of earned wage access
215 services, including the amount of proceeds a consumer is
216 eligible to request and the frequency with which proceeds are
217 provided to a consumer, is not contingent on whether the
218 consumer pays the tip, gratuity, or other donation, or on the
219 size of the tip, gratuity, or other donation.
220 (h) Provide proceeds to a consumer by any means mutually
221 agreed upon by the consumer and the provider.
222 (i) If the provider seeks from a consumer’s depository
223 institution, including by means of electronic funds transfer,
224 repayment of outstanding proceeds or payment of fees or other
225 amounts owed or paid, including voluntary tips, gratuities, or
226 other donations, in connection with the activities covered under
227 this chapter, the provider must:
228 1. Comply with applicable provisions of the federal
229 Electronic Funds Transfer Act of 1978, 15 U.S.C. ss. 1693 et
230 seq., and regulations adopted under the act.
231 2. Reimburse the consumer for the full amount of any
232 overdraft or insufficient funds fee imposed on a consumer by the
233 consumer’s depository institution which was caused by the
234 provider attempting to seek payment of any outstanding proceeds,
235 fees, or other payments, including voluntary tips, gratuities,
236 or other donations, in connection with the activities covered by
237 this chapter on a date before, or in an incorrect amount from,
238 the date or amount disclosed to the consumer. This subparagraph
239 does not apply to payments of outstanding amounts or fees
240 incurred by a consumer through fraudulent or other unlawful
241 means.
242 (2) A provider registered under s. 437.03 may not do any of
243 the following:
244 (a) Share with an employer a portion of any fees or
245 voluntary tips, gratuities, or other donations that were
246 received from or charged to a consumer for earned wage access
247 services.
248 (b) Require a consumer’s credit report or a credit score
249 provided or issued by a consumer reporting agency to determine a
250 consumer’s eligibility for earned wage access services.
251 (c) Accept payment of outstanding proceeds, fees, or
252 voluntary tips, gratuities, or other donations from a consumer
253 by means of a credit card, charge card, or debit card.
254 (d) Charge a late fee, a deferral fee, interest, or any
255 other penalty or charge for the failure to pay outstanding
256 proceeds, fees, or voluntary tips, gratuities, or other
257 donations.
258 (e) Report to a consumer reporting agency or debt collector
259 any information about a consumer regarding the inability of the
260 consumer to repay outstanding proceeds, fees, or voluntary tips,
261 gratuities, or other donations.
262 (f)1. Compel or attempt to compel a consumer to pay any
263 outstanding proceeds, fees, or voluntary tips, gratuities, or
264 other donations to the provider through any of the following
265 means:
266 a. A lawsuit against the consumer in a court of competent
267 jurisdiction.
268 b. Use of a third party to pursue collection from the
269 consumer on the provider’s behalf.
270 c. The sale of outstanding amounts to a third-party
271 collector or debt buyer to pursue collection from the consumer.
272 2. This paragraph does not preclude a provider from
273 compelling the payment of outstanding proceeds or fees incurred
274 by a consumer through fraudulent or other unlawful means or
275 pursuing an employer for breach of its contractual obligations
276 to the provider.
277 (g) Mislead or deceive the consumer about the voluntary
278 nature of any tips, gratuities, or other donations the provider
279 solicits, charges, or receives or make representations that
280 tips, gratuities, or other donations will benefit a specific
281 person.
282 (3) A provider may use the mailing address provided by a
283 consumer to determine the consumer’s state of residence for
284 purposes of this chapter.
285 (4) A provider offering consumer-directed earned wage
286 access services must comply with the requirements set forth in
287 s. 560.404.
288 Section 5. Section 437.05, Florida Statutes, is created to
289 read:
290 437.05 Construction; applicability.—
291 (1)(a) Notwithstanding any other law to the contrary,
292 earned wage access services offered or provided by a provider in
293 compliance with this chapter are not considered any of the
294 following:
295 1. A violation of or noncompliance with s. 516.17 or any
296 other state law governing deductions from payroll, salary,
297 wages, compensation, or other income or the purchase, sale or
298 assignment of, or an order for, earned but unpaid income.
299 2. A loan or other form of credit or debit, and the
300 provider is not considered a creditor, debt collector, or lender
301 with respect thereto.
302 3. A money transmission, and the provider is not considered
303 a money transmitter as defined in s. 560.103.
304 (b) Notwithstanding any other law to the contrary, fees
305 paid to a provider in accordance with this chapter are not
306 considered interest or finance charges.
307 (2) Chapter 516 does not apply to proceeds paid to a
308 consumer in accordance with this chapter.
309 (3) A voluntary tip, gratuity, or other donation paid by a
310 consumer to a provider in accordance with this chapter is not
311 considered a finance charge.
312 (4) If there is a conflict between this chapter and any
313 other state law, this chapter prevails.
314 Section 6. Section 437.06, Florida Statutes, is created to
315 read:
316 437.06 Administrative penalties.—
317 (1) If the commission finds that a provider has violated
318 this chapter or any rules adopted or orders issued under this
319 chapter, the commission may enter an administrative order that
320 does one or more of the following:
321 (a) Issues a notice of noncompliance pursuant to s.
322 120.695.
323 (b) Imposes an administrative fine in the Class II category
324 pursuant to s. 570.971 for each act or omission.
325 (c) Directs the provider to cease and desist activities
326 specified by the commission.
327 (d) Refuses to renew, revoke, or suspend the provider’s
328 certificate.
329 (e) Places the provider on probation, subject to conditions
330 specified by the commission.
331 (2) An administrative proceeding that could result in the
332 entry of an order imposing any of the penalties specified in
333 this section is governed by chapter 120.
334 Section 7. Upon this act becoming a law, the Financial
335 Services Commission is authorized, and all conditions are deemed
336 met, to adopt rules pursuant to ss. 120.536(1) and 120.54,
337 Florida Statutes. By January 1, 2026, the Financial Services
338 Commission must prescribe the form and content for an
339 application for registration to provide earned wage access
340 services pursuant to this act.
341 Section 8. A person who was engaged in the business of
342 providing earned wage access services in this state on or before
343 January 1, 2025, may continue to engage in the business of
344 providing earned wage access services without registering until
345 July 1, 2026, if the person has submitted an application for
346 registration and otherwise complies with this act.
347 Section 9. Section 437.04(1)(b) and (h), Florida Statutes,
348 as created by this act, first apply, with respect to a provider
349 that offers proceeds to a consumer under the terms of an
350 agreement that specifies the consumer’s cost of obtaining
351 proceeds, to any agreement entered into, renewed, or modified on
352 or after January 1, 2025.
353 Section 10. Except as otherwise expressly provided in this
354 act and except for this section, which shall take effect upon
355 this act becoming a law, this act shall take effect January 1,
356 2026.