Payroll Alert: Maryland Changes the Rules for Earned Wage Access

Maryland added new restrictions to earned wage access (EWA) programs, becoming the latest state to reshape how these services operate. For employers with multistate workforces, it’s another sign that EWA compliance is becoming increasingly state-specific. 

In April, Gov. Wes Moore signed SB 94, significantly overhauling the state’s earned wage access framework. The law takes effect Oct. 1, 2026.

The most notable change for employers is the prohibition on EWA providers soliciting, charging or accepting tips from employees using the service – practices that critics compare to a fee in disguise.  

Under the amended law, EWA providers will be required to disclose in their service contracts that tips are prohibited. They must also offer at least one no-cost access option and explain how to use it. Additional provisions address advertising restrictions, anti-discrimination protections, and a good-faith reliance safe harbor for EWA providers acting on written guidance from state regulators.

If your organization offers EWA to Maryland employees, contact your EWA vendor now and ask what compliance steps it is taking. Confirm that your vendor is removing tipping from its program, will complete any required contract updates before Oct. 1, and will update required employee disclosures.

A Patchwork Getting More Complex

Maryland isn’t alone. Across the country, states are moving quickly to regulate EWA, but they’re not taking the same approach. As of mid-2026, 12 states have enacted EWA-specific legislation, creating an increasingly complex compliance landscape for multistate employers.

Nine states – Arkansas, Indiana, Kansas, Louisiana, Missouri, Nevada, South Carolina, Utah and Wisconsin – have passed laws explicitly stating that EWA is not a loan, typically requiring registration, fee disclosures, and, in many cases, a no-cost option.

Meanwhile, Connecticut and California have enacted laws treating EWA as a form of credit subject to consumer lending rules. Maryland also treats EWA as a form of credit. SB 94 builds on the state’s existing framework by prohibiting tips and expanding disclosure requirements.

Pending Earned Wage Access Legislation

New York has two competing bills in play. The Stop Taking Our Pay Act, introduced in January, would classify all EWA advances as loans subject to the state’s 16% civil usury cap. A separate bill would take the opposite approach, regulating EWA through licensing and disclosure requirements without treating it as credit. Neither has passed.

At the federal level, H.R. 9330, the Earned Wage Access Consumer Protection Act, would classify EWA as non-credit nationwide and preempt state laws that treat EWA as credit. The bill cleared the House Financial Services Committee on June 30, 2026, but has no Senate companion, so its path forward remains uncertain.

Action Steps

Even when an employer uses a third-party EWA provider, compliance responsibility stays with the employer. You’ll want to:

• Review your EWA vendor contract now for tipping provisions, fee structures and repayment methods before Maryland’s Oct. 1 deadline
• Confirm your EWA vendor is properly registered or licensed in each state where you have employees (and that your contract reflects that)
• Map your workforce against the 12 states with EWA-specific laws and identify any gaps in compliance, and
• Monitor the federal preemption bill. If enacted, it could significantly change the state-by-state compliance landscape.