Indiana and Maryland join seven other states in enacting laws that specifically regulate earned wage access (EWA) providers.
EWA is an on-demand payment product that allows workers to access their wages as they are earned rather than waiting for a scheduled payday. Indiana Gov. Mike Braun signed House Enrolled Act 1125 (HEA 1125) into law on May 6, 2025, and Maryland Gov. Wes Moore allowed House Bill 1294 (HB 1294) to be enacted without his signature on May 20, 2025, joining Arkansas, Utah, Kansas, Missouri, Nevada, South Carolina and Wisconsin as the first to enact EWA legislation within the past two years. Regulators in Connecticut and California also weighed in on the product with differing approaches.
The laws represent contrasting approaches on how to classify EWA. Indiana’s law clarifies that EWA providers do not engage in lending, and Maryland took an approach akin to California’s, calling EWA a loan but offering a framework for providers to operate without having to substantially overhaul their models.
Indiana’s HEA 1125
Set to go into effect Jan. 1, 2026, HEA 1125 is a licensing regime requiring mandatory licensing and reporting.
Providers will be required to offer at least one no-cost option and transparent fee disclosures and are prohibited from assessing late fees, interests or other penalties for nonpayment. Providers can charge fees for expedited delivery of funds and subscriptions and solicit tips in a transparent manner. This law contains a fee cap: Fees charged cannot exceed the greater of $5 or 5% of the amount of the payment.
The law prohibits making fee-based disbursement the default delivery option and includes restrictions on accessing a user’s location — except to verify Indiana residency — and advertisements without opt-in consent.
Maryland’s HB 1294
Set to go into effect Oct. 1, 2025, HB 1294 reflects years of negotiations and compromise between industry stakeholders and state regulators. While HB 1294 classifies EWA products as loans, it provides a clear framework for providers to continue operating in Maryland without — in most cases — dramatic changes.
HB 1294 requires EWA providers to set the default tip option at zero and abide by a fee cap: $5 for proceeds equal to or less than $75 and $7.50 for proceeds greater than $75.
On or before July 1 each year beginning in 2026, EWA providers must submit a report to the Office of Financial Regulation that includes information necessary for the commissioner to assess the size and status of the EWA market within Maryland.
In a letter explaining that HB 1294 will be enacted without his signature, Moore acknowledged that EWA products can provide tangible benefit to workers and that the new law takes steps in the right direction for consumer protection.
