In this subtitle the following terms have the meanings indicated. “Bank” has the meaning stated in § 1–201 of this article. “Consumer–directed earned wage access” means delivery to a consumer of access to unpaid but earned wages: That is provided to a consumer by a third party who does not have a relationship with the consumer’s employer; That is based on employment, income, or attendance data obtained directly from the consumer; and Where the consumer does not pay the provider interest. “Consumer reporting agency” has the meaning stated in § 14–1201 of this article. “Earned wage” means salary, wages, compensation, or other income earned: On an hourly, project–based, piecework, or other basis; or Through services rendered as an independent contractor. “Earned wage access” means: Consumer–directed earned wage access; or Employer–integrated earned wage access. “Employer–integrated earned wage access” means delivery of unpaid but earned wages: That are provided to a consumer directly by a person the employer has contracted to provide the service; That are determined based on employment, income, or attendance data obtained directly or indirectly from the consumer’s employer, including a payroll service provider; and Where the consumer does not pay the provider interest. “Fee” means: A fee imposed by a provider for delivery or expedited delivery of earned wage access to a consumer; or A subscription or membership fee imposed by a provider for a group of services that includes earned wage access. “Fee” does not include a voluntary tip, gratuity, or other donation. “Interest” has the meaning stated in § 12–101 of this title. “Interest” does not include a fee imposed by an earned wage access provider licensed under Title 11, Subtitle 2 of the Financial Institutions Article. “Loan” has the meaning stated in § 12–101 of this title. “Loan” includes earned wage access, subject to the provisions of this subtitle. “Payroll period” means a period of time during which a consumer earns wages that an employer owes to the employee at the end of the period. “Proceeds” means a payment to a consumer by a provider that is based on unpaid but earned wages. “Provider” means a person who provides to consumers either consumer–directed earned wage access or employer–integrated earned wage access. “Provider” does not include: A service provider, such as a payroll service provider, that may verify the available earnings of a consumer but that is not contractually obligated to fund any proceeds delivered as part of an earned wage access service; or An employer that offers a portion of salary, wages, or other compensation directly to its employees or independent contractors before a normally scheduled pay date for a payroll period. “Tip” has the meaning stated in § 12–101 of this title. “Wages” has the meaning stated in § 12–101 of this title.

A person may not engage in the business of providing earned wage access unless the person is licensed under or is exempt from the licensing requirements of Title 11, Subtitle 2 of the Financial Institutions Article. Failure to obtain a consumer loan license shall subject a provider to the enforcement provisions of Title 11, Subtitle 2 of the Financial Institutions Article. An earned wage access provider licensed under Title 11, Subtitle 2 of the Financial Institutions Article and subject to this subtitle is exempt from other provisions of State law governing lending, credit, or debt, including the provisions of Subtitle 1, Subtitle 3, Subtitle 9, and Subtitle 10 of this title. Earned wage access services provided in accordance with this subtitle may not be considered: A money transmission; or A violation of or noncompliance with State laws governing deductions from payroll, salary, wages, compensation, or other income or the purchase, sale, assignment, or order for unpaid but earned wages.

A provider of earned wage access shall: Develop and implement policies and procedures to respond to questions raised by consumers; Address complaints from consumers in an expedient manner; Whenever the provider offers a consumer the option to receive earned wage access services for a fee, offer the consumer at least one reasonable option to obtain earned wage access at no cost to the consumer; Clearly explain to a consumer how to elect a no–cost option described in item (3) of this subsection; Before entering into an agreement with a consumer for the provision of earned wage access services: Inform the consumer of the consumer’s rights under the agreement; and Fully and clearly disclose all fees associated with the earned wage access services; Inform a consumer of any material changes to the terms and conditions of the earned wage access services before implementing those changes for that consumer; Allow a consumer to cancel use of the provider’s earned wage access services at any time without incurring a cancellation fee imposed by the provider; Comply with all applicable local, state, and federal privacy and information security laws; Clearly and conspicuously disclose in the provider’s service contract with the consumer that the provider is prohibited by law from soliciting or retaining tips, gratuities, or other donations; Provide proceeds to a consumer by any means mutually agreed upon by the consumer and the provider; and Except as provided in subsection (b) of this section, if the provider will seek repayment of outstanding proceeds or payment of fees or other amounts owed or incurred from a consumer’s account at a bank in connection with earned wage access services covered by this subtitle, including by means of electric fund transfer: Comply with the federal Electronic Fund Transfer Act and regulations adopted to implement the Act; and Reimburse the consumer within 5 business days for the full amount of any overdraft or nonsufficient fund fees imposed on a consumer by the consumer’s bank that were caused by the provider attempting to seek repayment of any outstanding proceeds or payment of fees in connection with earned wage access services covered by this subtitle. Subsection (a)(11) of this section does not apply to a provider seeking repayment of outstanding proceeds or payment of fees or other amounts owed that were received or incurred by a consumer through fraudulent or other unlawful means.

A provider of earned wage access may not: Share with an employer any charges received from a consumer for earned wage access; Solicit or charge a tip; Condition a consumer’s ability to obtain earned wage access on the consumer’s ability or willingness to pay the provider a tip; Charge a consumer a late fee, interest, or other penalty for failure to pay any proceeds or fees; Report any information about a consumer’s failure to pay any proceeds or fees to any consumer reporting agency; Obtain a consumer’s credit report as a method of qualifying the consumer for earned wage access; Receive interest from a consumer; or Compel or attempt to compel payment by a consumer of any proceeds, fees, tips, gratuities, or other donations through: A civil action against the consumer; The use of a third party to pursue collection from the consumer on the provider’s behalf; or The sale or assignment of outstanding amounts to a third–party collector or debt buyer for collection from the consumer.

A provider of earned wage access may charge a fee for delivery or expedited delivery of earned wage access to a consumer not exceeding: $5.00 for any advance of proceeds equal to or less than $75.00; or $7.50 for any advance of proceeds greater than $75.00.

On or before July 1 each year, beginning in 2026, a provider of earned wage access shall submit a report to the Office of Financial Regulation that includes any information considered necessary by the Commissioner, as prescribed by regulation, to assess the size and status of the earned wage access market in the State.

A provider may not directly or indirectly print, publish, distribute, or broadcast any false, misleading, or deceptive statement regarding the fees, rates, terms, or conditions of earned wage access. If fees or rates of fees are advertised by a licensee, the Commissioner may require the licensee to state the fees or rates of fees fully and clearly in any manner the Commissioner considers necessary to prevent misunderstanding by a prospective consumer. Subject to any condition which the Commissioner may impose to prevent a false impression regarding the scope or degree of protection provided by this subtitle, the Commissioner may authorize or require a licensee to refer to the fact that the licensee is under State supervision in the advertising materials of the licensee.

In granting or denying a consumer request for earned wage access, a licensee may not discriminate against any consumer on the basis of race, color, creed, national origin, sex, sexual orientation, gender identity, disability, marital status, or age. Denying a request for earned wage access by a consumer who is a minor is not discrimination on the basis of age.

A licensee or a person exempt from licensing under this subtitle is not subject to a penalty for a violation that arises because the licensee or person exempt from licensing in good faith: Performed or omitted to perform an act in conformity with or in reliance on: A written opinion of the Attorney General of Maryland or a regulation adopted by the Commissioner; A written opinion by the Commissioner given on request of the licensee or person exempt from licensing; or An interpretation by the Commissioner in a written notice or examination report; or Used a form or procedure that has been approved in writing by the Commissioner and the Attorney General. The provisions of subsection (a) of this section do not apply to an act or omission to act that occurs after: The opinion, regulation, or interpretation relied on is amended, repealed, or determined to be invalid for any reason by any judicial or other authority; or Approval for a form or procedure is amended, rescinded, or determined to be invalid for any reason by any judicial or other authority. This section may not be construed to: Limit the imposition of any civil or criminal penalty for a knowing or willful violation of this subtitle; or Limit the power of the Commissioner or the courts to order a refund to a consumer of money collected in violation of this subtitle.

The Commissioner may adopt regulations to carry out this subtitle.