News & Analysis as of

Payroll Advances

Manatt, Phelps & Phillips, LLP

Why The CFPB’s Earned Wage Access Rule Is Subject To Challenge

Earned wage access (“EWA”) programs are financial products that allow workers to receive payment for wages they have already earned before their next scheduled payday. Many of these programs are integrated into their...more

Morrison & Foerster LLP

Earned Wage Access Products would be “Credit” under CFPB Proposed Interpretive Rule

On July 18, 2024, the Consumer Financial Protection Bureau (CFPB) issued a proposed interpretive rule on earned wage access (EWA) products (“Proposed Interpretive Rule”) that, if finalized, would clarify that EWA products are...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

On-Demand Pay: Employees Love It, But Tax Implications Linger

​​​​​​​Research suggests that more than 60 percent of U.S. workers would like to be able to access their earnings before their regularly scheduled paydays. Responding to this desire, many employers and their payroll providers...more

Holland & Knight LLP

Mexico Will Regulate Employer-Deducted Payroll Loans

Holland & Knight LLP on

Mexico will regulate payroll loan agreements with automatic employer deduction. To this end, on Feb. 18, 2021, the Mexican Senate approved a bill in order to reform provisions under the General Law of Negotiable Instruments...more

Allen Matkins

But Is It A Loan?

Allen Matkins on

Earlier this week, California' Department of Financial Protection & Innovation announced that it had entered into memorandums [sic] of understanding with five earned wage access companies.  If you haven't heard of a "earned...more

Hudson Cook, LLP

New York DFS and Other Regulators Launch Investigation into Payroll Advance Industry

Hudson Cook, LLP on

On August 6, 2019, the New York Department of Financial Services Superintendent Linda A. Lacewell announced that the DFS will lead a multistate investigation into the payroll advance industry and allegations of unlawful...more

Womble Bond Dickinson

What Employers Need to Know About Advance Wage Payment Products

Womble Bond Dickinson on

A hot topic of discussion in payroll offices around the country is the prospect of new services that provide workers with immediate access to their wages for hours they have worked but which aren’t due to be paid until after...more

Ballard Spahr LLP

NY DFS announces multistate investigation of payroll advance industry

Ballard Spahr LLP on

The New York Department of Financial Services (DFS) issued a press release this week to announce that it is leading a multistate investigation into the payroll advance industry.  A payroll advance allows an employee to access...more

Fisher Phillips

Are "Draws" Against Commissions Unlawful "Kick-Backs"?

Fisher Phillips on

Media reports have mistakenly suggested that a recent decision by the Sixth Circuit U.S. Court of Appeals (Kentucky, Michigan, Ohio, and Tennessee) found the federal Fair Labor Standards Act to prohibit recouping a draw or...more

Katten Muchin Rosenman LLP

Employment Matters – UK - March 2017

There Is No Implied Term Waiving the Obligation To Repay a Loan in a Voluntary Redundancy Situation - Employers who advance sums to employees, such as relocation costs, will often try to claw back those sums in the event...more

Foley & Lardner LLP

Think Twice Before Making Payroll Advances to Employees

Foley & Lardner LLP on

It can be difficult to turn down an employee who asks for an advance on their earnings. However, there are lots of reasons for companies to think twice before making payroll advances to employees....more

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