Joe Lombardo, the 31st governor of Nevada, signed the first law in the United States to introduce regulatory standards for companies that offer access to wages (EWA).
Access to a salary is a kind of concept, the popularity of which has been growing in recent years. All over the world, workers whose well-being is currently under the tangible impact of such negative factors as an increase in interest rates and the high cost of living realize that access to money already earned is more profitable than a system that provides payments once a month or even less often.
The American Fintech Council (AFC) has repeatedly joined its members in Carson City, Nevada, to testify before the state Senate and Assembly. The council urged Governor Lombardo to sign the bipartisan law.
AFC also thanked Senate Majority Leader Nicole Cannizzaro, Deputy Senate Leader Roberta Lange, and Assembly Majority Leader Sandra Jauregui for their assistance in creating an important law that allows Nevada to implement a system of standards and guarantees of access to a well-deserved salary.
Phil Goldfeder, CEO of the American Financial Technology Council, said that Nevada has become the first state in which regulatory standards for the industry are in effect EWA, which is at the nascent stage and expressed confidence that this region will become a leader in providing consumers with access to finance without compromising their rights.
The law requires state licensing for all EWA providers that operate in Nevada, including those who integrate with the business and offer services directly to consumers. The bill codifies the best industry practices and measures to protect the rights of citizens, including maximum transparency, the absence of recourse and late payment fees, the absence of debt collection, credit reporting, and any measures to collect the amount paid.
Kevin Koop, CEO of the payment provider EWA DailyPay, positively assessed the legislative decision in the context of strengthening regulation of the scope of his company’s activities. He noted that the law creates a basis for protecting the rights of hundreds of thousands of consumers who get access to wages in Nevada. Also, according to him, within the framework of the new regulatory system, DailyPay will be able to promote its mission of providing American workers with the opportunity to improve their financial condition without the need for expensive and predatory strategies and products.
AFC stated that employees of companies, enterprises, and other organizations appreciate the new option of access to earned money. Currently, in the United States, almost 75% of citizens live from paycheck to paycheck.
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