Update Applicable to:	Effective Date
All Licensed EWA Providers	January 1, 2026

What happened?

On May 6, 2025, Indiana Governor Mike Braun signed the Indiana Earned Wage Access Act (House Enrolled Act 1125) into law.

Overview:

This legislation establishes a regulatory framework for earned wage access (EWA) services—also known as on-demand pay—allowing workers to access their earned but unpaid wages before payday.

Licensing & Oversight

• EWA providers must be licensed by the Indiana Department of Financial Institutions (DFI) and renew annually.
• The DFI has authority to enforce, examine, and issue rules for compliance.
• Providers must submit quarterly reports and retain transaction records for at least two years.

Service Models

• Employer-Integrated: Uses employer-provided data (e.g., hours worked).
• Consumer-Directed: Relies on information reported by the consumer.

Consumer Protections

• Providers must offer at least one no-cost option for accessing wages, with delivery within one business day.
• Fees are capped at $5 or 5% of the amount accessed.
• Tips must be voluntary, clearly disclosed, and cannot be shared with employers.
• Providers may not charge interest, late fees, or accept credit card payments.
• Debt collection through lawsuits, calls, or third parties is prohibited unless fraud is involved.

Privacy & Advertising

• Location tracking is only allowed to verify Indiana residency.
• No unsolicited ads or notifications without the user’s opt-in consent.

Legal Clarifications

• EWA services are not classified as loans or credit.
• Fees and tips are not considered interest or finance charges.

Exemptions

• Employers offering EWA directly to their employees.
• Federally insured financial institutions.

Source References

• Indiana HB 1125 – Earned wage access services

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