The PaymentsSource / American Banker publication reports that while the CFPB’s latest advisory opinion on earned wage access (EWA) is being welcomed by the industry as a symbolic win, legal experts caution that it does not materially change the regulatory landscape, particularly given the continued patchwork of state-level laws and the opinion’s non-binding nature
The CFPB clarified that employer-integrated EWA products are not credit under the Truth in Lending Act and that optional tips or expedited fees are not finance charges when a free option exists, reinforcing long-held industry positions. From Jason Lee’s perspective, however, the guidance is more than symbolic: he views it as critical validation for employers, confirming that employer-integrated, free EWA is not a loan and, when paired with existing state wage-assignment laws, provides employers nationwide with the confidence to move forward. In Lee’s view, this federal clarity—despite its advisory status—removes a major barrier to adoption and gi
