SB282: SB282 "Fair Business Practices Act of 1975,"; requirements for earned wage access services; provide

Earned wage access services let workers draw on wages they have already earned but not yet been paid, often through an app connected to an employer or directly by the consumer. Georgia law currently has no specific rules for these services. This bill amends the Fair Business Practices Act of 1975 (O.C.G.A. Title 10) to add a new Code section, 10-1-393.20, spelling out what these providers must and must not do. Providers would have to disclose fees upfront, offer at least one no-cost way to get funds, let consumers cancel anytime without penalty, and follow federal electronic funds transfer rules. Providers could not charge more than $5 or 5 percent of the amount advanced, whichever is greater, could not use credit reports to decide eligibility, and could not sue consumers or send debts to collections to recover unpaid amounts. The bill also states these payments are not loans and the fees are not interest, so the services would not count as lending or money transmission under Georgia law. The new rules would apply to agreements entered into or renewed on or after July 1, 2025.

• Creates a new Georgia Code section (10-1-393.20) defining and regulating 'earned wage access services' for the first time.
• Caps per-transaction fees at the greater of $5.00 or 5 percent of the amount advanced to a consumer.
• Bars providers from charging late fees, deferral fees, interest, or other penalties for failing to repay advances.
• Prohibits providers from suing consumers, using debt collectors, selling debts, or making unsolicited collection calls to recover unpaid advances.
• Declares that compliant earned wage access services are not loans, lending activity, money transmission, or violations of payroll deduction laws.
• Makes any violation of the new rules an unfair or deceptive practice punishable under the Fair Business Practices Act.

Workers who use earned wage access apps or services to access wages before payday, the companies that provide these services, and employers who partner with such providers. It also affects consumer protection enforcement under the Fair Business Practices Act.

Georgia workers using paycheck-advance apps would gain specific legal protections, such as fee caps and a ban on debt collection tactics, that do not currently exist in state law. Providers would get legal clarity that their services are not regulated as loans, which could shape how these products operate and grow in Georgia.

• Subsection (a) defines key terms including 'consumer,' 'earned but unpaid income,' 'employer,' and the two types of earned wage access services (consumer directed and employer integrated).
• Subsection (b) requires providers to have complaint procedures, disclose fees before signing consumers up, offer a no-cost option, and reimburse overdraft fees caused by mistimed withdrawal attempts.
• Subsection (c) bans specific practices including credit report checks, credit card repayment, sharing fees with employers, and reporting nonpayment to credit bureaus.
• Subsection (c)(2) sets the fee cap at the greater of $5.00 or 5 percent of proceeds per transaction.
• Subsection (d) clarifies that compliant services are not loans, lending, or money transmission, and that permitted fees are not interest under Georgia law.
• Subsection (e) makes noncompliance an unfair or deceptive act punishable under the Fair Business Practices Act (O.C.G.A. Title 10).
• Section 2 states the new rules apply to agreements entered into or renewed on or after July 1, 2025.

1. 2026-02-12Senate Withdrawn & Recommitted (Senate)
2. 2025-02-27Senate Read and Referred (Senate)
3. 2025-02-26Senate Hopper (Senate)

• Russ Goodman (R, SD-008)Primary sponsor
• Kim Jackson (D, SD-041)
• Freddie Sims (D, SD-012)
• Ricky Williams (R, SD-025)

• earned wage access
• consumer protection
• payday advance apps
• fee caps
• Fair Business Practices Act