§ 12-1501
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/md/commercial-law/12-1501A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–1501.
(a)In this subtitle the following terms have the meanings indicated.
(b)“Bank” has the meaning stated in § 1–201 of this article.
(c)“Consumer–directed earned wage access” means delivery to a consumer of access to unpaid but earned wages:
(1)That is provided to a consumer by a third party who does not have a relationship with the consumer’s employer;
(2)That is based on employment, income, or attendance data obtained directly from the consumer; and
(3)Where the consumer does not pay the provider interest.
(d)“Consumer reporting agency” has the meaning stated in § 14–1201 of this article.
(e)“Earned wage” means salary, wages, compensation, or other income earned:
(1)On an hourly, project–based, piecework, or other basis; or
(2)Through services rendered as an independent contractor.
(f)“Earned wage access” means:
(1)Consumer–directed earned wage access; or
(2)Employer–integrated earned wage access.
(g)“Employer–integrated earned wage access” means delivery of unpaid but earned wages:
(1)That are provided to a consumer directly by a person the employer has contracted to provide the service;
(2)That are determined based on employment, income, or attendance data obtained directly or indirectly from the consumer’s employer, including a payroll service provider; and
(3)Where the consumer does not pay the provider interest.
(1)“Fee” means:
(i)A fee imposed by a provider for delivery or expedited delivery of earned wage access to a consumer; or
(ii)A subscription or membership fee imposed by a provider for a group of services that includes earned wage access.
(2)“Fee” does not include a voluntary tip, gratuity, or other donation.
(1)“Interest” has the meaning stated in § 12–101 of this title.
(2)“Interest” does not include a fee imposed by an earned wage access provider licensed under Title 11, Subtitle 2 of the Financial Institutions Article.
(1)“Loan” has the meaning stated in § 12–101 of this title.
(2)“Loan” includes earned wage access, subject to the provisions of this subtitle.
(k)“Payroll period” means a period of time during which a consumer earns wages that an employer owes to the employee at the end of the period.
(l)“Proceeds” means a payment to a consumer by a provider that is based on unpaid but earned wages.
(1)“Provider” means a person who provides to consumers either consumer–directed earned wage access or employer–integrated earned wage access.
(2)“Provider” does not include:
(i)A service provider, such as a payroll service provider, that may verify the available earnings of a consumer but that is not contractually obligated to fund any proceeds delivered as part of an earned wage access service; or
(ii)An employer that offers a portion of salary, wages, or other compensation directly to its employees or independent contractors before a normally scheduled pay date for a payroll period.
(n)“Tip” has the meaning stated in § 12–101 of this title.
(o)“Wages” has the meaning stated in § 12–101 of this title.