New law establishes responsible, consumer-focused regulations for Earned Wage Access services in Indiana

AFC recognizes Gov. Mike Braun, Rep. Jake Teshka, and Sen. Kyle Walker for their dedication to worker access and consumer protection in Indiana

Washington, D.C. (May 7, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies, innovative banks, and the largest number of responsible Earned Wage Access (EWA) providers, applauds the enactment of House Bill 1125 (the Earned Wage Access Act) in Indiana. This critical legislation, signed yesterday by Gov. Mike Braun and led in the legislature by Rep. Jake Teshka and Sen. Kyle Walker, provides a clear and consumer-focused regulatory framework for EWA services in the state.

Last month, AFC testified before the Senate Insurance & Financial Institutions Committee urging the bill’s passage to ensure that innovative financial tools remain available to Hoosiers in a secure and regulated environment. With over 300,000 Indiana workers already benefiting from EWA, the new law responds to the growing demand for this vital financial service. The bill guarantees that EWA services will continue to provide flexibility and stability to working families across the state, while incorporating critical consumer protections.

"The passage of the bill and the new law provides Indiana workers with certainty and stability by ensuring that the tools they rely on to manage their money will remain transparent, responsible, and available," said Phil Goldfeder, CEO of the American Fintech Council. "By establishing these standards, Indiana is creating a financial landscape where consumers can manage their earnings and make informed decisions with confidence. We applaud Governor Braun, Representative Teshka, and Senator Walker for their proactive leadership in providing workers the flexibility and protections they need to thrive in today’s economy.”

Earned Wage Access allows workers to access their earned wages before payday, helping them manage their finances and avoid high-cost alternatives like payday loans. Under the new law, EWA providers in Indiana must offer clear, upfront information about any fees and ensure that a no-cost option is available to all users. Additionally, the bill prohibits the use of credit checks, prohibits charging interest or late fees, and affirms that EWA is non-recourse, meaning providers cannot seek repayment from users.

“This new law fosters a safer environment for workers in Indiana, ensuring they can continue to access responsible EWA services” said Ashley Urisman, Director of State Government Affairs at AFC. “With a focus on transparency, fair fee structures, and giving users greater control over their earnings, this law solidifies the state’s commitment to both financial innovation and consumer protection. Indiana is paving the way for a more equitable financial system that benefits workers and the broader economy.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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