EWA stands for earned wage access. It is a way for employees to receive their earned wages before their regular pay day. Basically, a third party provider is given information about time worked by the employee and pays them the amount earned right away rather than the employee having to wait for payday. While EWA programs are gaining in popularity, they raise a host of compliance and administrative issues for employers who use them. Potential issues arise from laws governing:
- Assignment of Wages;
- Free and Clear Payment of Wages;
- Direct Deposit;
- Unauthorized Deductions from Wages;
- Final Pay;
- Employee Privacy.
Employers using or considering EWA programs need to carefully consider all applicable laws and determine if their program is in compliance.
Listen in to find out how your business can avoid problems with EWA programs.
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KMK Law articles and blog posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. The laws/regulations and interpretations thereof are evolving and subject to change. Although we will attempt to update articles/blog posts for material changes, the article/post may not reflect changes in laws/regulations or guidance issued after the date the article/post was published. Please consult with counsel of your choice regarding any specific questions you may have.
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