Rep. Joe Tate

Maddy summaryHB 5558 creates a new licensing system for businesses providing "earned wage access services" (EWAS), which allow workers to access part of their earned but unpaid wages before payday. It requires all EWAS providers (excluding banks, payroll services, and employers offering early pay) to obtain a state license, pay annual fees based on business volume, and submit detailed application information. The law defines key terms like "earned but unpaid income" (wages earned but not yet paid by an employer) and outlines penalties for unlicensed operation. This directly affects EWAS providers operating in Michigan, imposing regulatory requirements while exempting certain financial institutions and employer-provided early wage options.

Maddy summaryHB 5568 amends Michigan's 1966 interest rate law (MCL 438.31) to explicitly exempt "earned wage access services" from the 7% annual interest cap. This means providers of early paycheck access services (like apps or employer programs that let workers withdraw earned wages before payday) can charge rates outside the standard limit. The bill directly affects workers who use these services and the companies offering them. It clarifies an existing exemption under the law without changing the 7% cap for other loans.

Maddy summaryHB 5569 exempts licensed earned wage access services from Michigan's criminal usury law (MCL 438.41-438.42). This bill adds Section 1a to the existing law, clarifying that the criminal usury regulations do not apply to businesses operating under the earned wage access services act. It directly affects providers of short-term wage advances - such as those offering early access to earned pay - by removing them from criminal usury penalties. The change simplifies regulatory compliance for these services without altering other aspects of the usury law.

Maddy summaryHB 5563 amends Michigan's consumer credit law to exempt licensed earned wage access services from being classified as "regulated persons" under debt collection rules. This means businesses offering early wage access (allowing workers to receive part of their earned wages before payday) are not subject to standard debt collection regulations for their core wage access operations. The exemption specifically applies to activities conducted under the earned wage access services act, separating these services from traditional debt collection oversight. The bill requires another related bill (HB 5558) to become law before it takes effect.

Maddy summaryHB 5560 exempts "earned wage access services" (like apps allowing workers to access earned wages before payday) from Michigan's standard wage and fringe benefit laws, as defined in the separate "earned wage access services act." This exemption applies only to services complying with that specific act, removing them from the scope of the existing 1978 wage law (MCL 408.471-408.490). The bill is conditional, requiring the enactment of HB 5558 first before taking effect. It directly affects providers of these early-wage access services, allowing them to operate under different rules than traditional wage payment systems.

Maddy summaryHB 5565 amends Michigan's Deferred Presentment Service Transactions Act to exempt licensed earned wage access services from requiring a separate license under that law. This directly affects companies offering early paycheck access services (like instant cash advances on upcoming wages), allowing them to operate under their existing earned wage access licenses instead of obtaining additional permits. The key provision adds a specific exemption in Section 11, clarifying that these services are not subject to the standard licensing requirements for check-cashing or short-term loan businesses. The change removes a regulatory barrier for these financial products, streamlining their legal operation in Michigan. (Note: The bill's effective date depends on another related bill, HB 5558, passing.)

Maddy summaryHB 5567 amends Michigan's Regulatory Loan Act to exempt earned wage access services from its regulations. Specifically, it adds a new exemption for businesses operating under a license issued by the earned wage access services act, meaning these services would no longer be treated as loans under the current law. This change would directly affect providers of earned wage access services (such as employers or third-party apps offering early wage access) by removing requirements like licensing under the Regulatory Loan Act. The bill's implementation is contingent on another related bill (HB 5558) being enacted.

Maddy summaryHB 5559 exempts licensed earned wage access services from Michigan's money transmission licensing requirements. It directly affects companies offering "earned wage access" services (like early paycheck access for workers), which are already regulated under a separate state law. The bill adds a specific exemption in the Money Transmission Services Act, stating that these providers are not subject to licensing if they operate under the existing earned wage access services act. This change simplifies regulatory compliance for these businesses without altering other money transmission rules.

Maddy summaryHB 5566 amends Michigan's Credit Reform Act to exempt businesses providing earned wage access services from being classified as "regulated lenders." This directly affects companies offering short-term advances on earned wages (like early paycheck access), removing them from certain financial regulations. The key provision adds a new definition in the law stating that "regulatory lender" does not include entities licensed under Michigan's Earned Wage Access Services Act. This change reduces regulatory burdens for these specific businesses by excluding them from the act's requirements for lenders.

Maddy summaryHB 5561 amends Michigan's Occupational Code to exempt licensed earned wage access services from standard collection agency regulations when collecting debts related to their core services. Specifically, it adds an explicit exemption in the definition of "collection agency" for businesses operating under the Earned Wage Access Services Act. This means these services no longer need separate collection agency licensing for debts tied to their earned wage access offerings. The bill directly affects businesses providing short-term wage access (like early paycheck access) that are already licensed under the Earned Wage Access Services Act. The exemption simplifies regulatory requirements for these specific providers without altering broader collection practices.