SB 282: "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 tied to their employer or their own account information. Georgia law currently has no specific rules for these services. This bill adds a new section to the Fair Business Practices Act of 1975 (O.C.G.A. § 10-1-393.20) that defines these services and sets requirements for the companies that offer them. Providers would have to disclose fees upfront, offer at least one no-cost way to get funds, let consumers cancel anytime without a cancellation fee, and follow federal electronic funds transfer rules. Providers could not share fee revenue with employers, charge more than $5 or 5 percent of the amount advanced (whichever is greater), charge late fees or interest, use credit reports to decide eligibility, or sue, use debt collectors, or make unsolicited calls to collect unpaid amounts. The bill also declares that compliant earned wage access services are not loans, lending, or money transmission, and that permitted fees are not interest. It would apply to agreements entered into or renewed on or after July 1, 2025.

• Creates a new legal category called earned wage access services and defines providers, consumers, employers, and fees under Georgia's Fair Business Practices Act.
• Requires providers to disclose all fees before an agreement starts, offer a no-cost option to get funds, and let consumers cancel anytime without a cancellation fee.
• Caps per-transaction fees at the greater of $5.00 or 5 percent of the amount advanced to a consumer.
• Bans late fees, deferral fees, interest, credit report checks, credit card repayment, and reporting unpaid amounts to credit agencies or debt collectors.
• Prohibits lawsuits, third-party debt collection, debt sales, and unsolicited phone calls to collect unpaid advances or fees from consumers.
• States that compliant earned wage access services are not loans, lending activity, or money transmission, and that permitted fees are not interest.

Companies that offer earned wage access apps or programs, employers who partner with them, and Georgia workers who use these services to access wages before their scheduled payday. Consumer reporting agencies and debt collectors are also affected because providers are barred from using them against consumers.

Georgia workers who use paycheck advance apps would get new protections, including fee caps and a ban on aggressive collection tactics like lawsuits or credit reporting. Providers would gain legal clarity that their services are not classified as loans, which affects what other lending laws apply to them.

• Section 1 adds new Code section 10-1-393.20 defining terms including 'consumer,' 'earned but unpaid income,' 'employer,' 'fee,' and 'outstanding proceeds.'
• Subsection (b) requires providers to disclose fees, offer a no-cost option, allow free cancellation, and follow federal Electronic Funds Transfer Act rules when collecting via bank transfer.
• Subsection (c) bans fee-sharing with employers, caps per-transaction fees at the greater of $5.00 or 5 percent of proceeds, and bans late fees, credit checks, and using debt collectors or lawsuits to collect.
• Subsection (d) declares that compliant services are not lending, money transmission, or payroll deduction violations, and that permitted fees are not interest.
• Subsection (e) makes noncompliance an unfair or deceptive act punishable under the Fair Business Practices Act.
• Section 2 applies the new rules 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 advances
• fintech regulation
• payroll