The Consumer Financial Protection Bureau (CFPB) recently clarified definitions and changes that will impact how earned wage access can be used in your workplace. 

In brief: The CFPB issued an Earned Wage Access advisory opinion that comes at a time when the legal landscape around earned wage access has been shaped and formed over the past few years, at both the state and federal levels. Rather than being viewed as loans, earned wage access is an elective benefit or perk. 

Let’s dive into the details. 

What This Means For Employers

In late December 2025, the Consumer Financial Protection Bureau (CFPB) issued a new advisory opinion on earned wage access (EWA). The goal: clarify when EWA is not considered credit under federal law.

EWA has become a popular benefit for supporting financial wellness, improving retention, and standing out in competitive labor markets. 

Until now, regulatory uncertainty—especially across state lines—made some organizations hesitant to adopt or expand these programs.

This new guidance helps reset the conversation.

What It Is: The CFPB’s Advisory Opinion on Earned Wage Access

Earned wage access allows employees to receive a portion of wages they have already earned before payday. It is often positioned as an alternative to overdrafts, payday loans, and other short-term borrowing options.

The legal question has always been whether EWA counts as “credit” under the Truth in Lending Act (TILA) and Regulation Z. If it does, providers and employers face stricter compliance, disclosures, and regulatory oversight.

In its December 23, 2025 advisory opinion, the CFPB introduced the concept of “Covered EWA.” These are employer-partnered programs that meet specific criteria:

• Employees only access wages they have already earned
• Repayment happens through payroll deduction
• There is no debt obligation if repayment fails
• Providers do not underwrite or assess credit risk
• Any fees or tips are optional and not finance charges

When structured this way, the CFPB says these programs are not considered credit under federal lending law.

In simpler terms, accessing your own earned pay is not the same as borrowing money.

Why It’s Happening Now

This opinion did not come out of nowhere.

EWA usage has grown quickly in recent years, particularly among hourly and frontline workers. Millions of employees now use these tools, and billions in wages are accessed early each year.

At the same time, the regulatory environment has been inconsistent.

• In 2020, the CFPB issued guidance suggesting some EWA models were not credit
• In 2024, the Bureau proposed rules that would classify many EWA products as loans
• In 2025, the CFPB reversed course for employer-integrated models and created the Covered EWA category

This shift reflects pressure from several directions. Fintech providers and employer groups argued that treating EWA as loans would limit access to helpful benefits. Consumer advocates raised concerns about fees and transparency in some products, especially outside employer partnerships.

The advisory opinion attempts to draw a clearer line between employer-based wage access and consumer cash advance products.

It also signals that payroll-connected benefits are being evaluated differently than stand-alone financial apps.

The Impact: What This Means for Employers and Employees

For employers, the biggest change is clarity.

If your EWA program fits the Covered EWA definition, it is not subject to federal consumer lending rules. That reduces legal ambiguity and compliance concerns when offering early wage access as a benefit.

It also strengthens the case for EWA as part of a broader financial wellness strategy.

Workers continue to report high levels of financial stress. Many live paycheck to paycheck, even while working full-time. When unexpected expenses hit, early wage access can prevent reliance on high-cost alternatives.

From a workforce perspective, EWA can support:

• Short-term financial stability
• Reduced absenteeism tied to financial emergencies
• Improved engagement and retention

The opinion also draws a sharper distinction between employer-sponsored benefits and direct-to-consumer fintech advances. That matters when HR teams are evaluating solutions that integrate with payroll and benefits platforms.

Not all EWA products are the same. Structure matters.

What Employers Should Do Now

With clearer federal guidance in place, employers are in a stronger position to take action, whether they already offer EWA or are still evaluating it.

1. If You Don’t Offer EWA, Consider Adding It to Your Benefits Mix

For organizations that have been waiting on regulatory clarity, this opinion lowers one of the biggest barriers to entry.

Early wage access can be a practical, high-impact benefit, especially for hourly and frontline workers. It does not require changing pay cycles or increasing compensation. But it can materially improve how employees manage cash flow between paydays.

As part of broader financial wellness efforts, EWA can complement:

• Emergency savings programs
• Budgeting tools
• Financial and benefits literacy

The key is choosing solutions that are employer-integrated and aligned with Covered EWA principles.

2. Review How Your Current Program Is Structured

If you already offer EWA, now is a good time to confirm whether your setup aligns with the CFPB’s Covered EWA criteria.

Pay close attention to:

• How earned wages are calculated and verified
• How and when repayment occurs
• Whether any fees are truly optional
• Whether employees can ever carry a balance

These details matter for both compliance and employee trust.

3. Coordinate Across Payroll, HR, and Finance

EWA should not live in a silo.

Payroll accuracy, system integrations, and internal controls all affect how smoothly early wage access works. Cross-functional alignment reduces operational risk and ensures employees have a consistent experience.

4. Educate Employees on Responsible Use

Even when EWA is not credit, it still affects take-home pay.

Employers should clearly communicate:

• How much can be accessed
• When deductions occur
• How frequent usage may affect future paychecks

Financial wellness improves when access is paired with understanding.

5. Stay Aware of State-Level Rules

The CFPB opinion applies at the federal level. States may still impose their own requirements or licensing standards for EWA providers.

Employers should work with legal, payroll, and benefits partners to ensure programs remain compliant at both the state and federal levels.

Why This Matters for the Future of Payroll Benefits

The CFPB’s advisory opinion reflects a broader shift in how compensation is evolving.

Employees increasingly expect flexibility, transparency, and access to their money on their own terms. Employers are being asked to support financial health without becoming lenders or financial institutions.

Covered EWA offers a path forward. It frames early pay not as debt, but as timely access to compensation already earned.

For organizations looking to modernize benefits while supporting retention and engagement, this opinion provides both guidance and opportunity.

And for employees, it reinforces an important idea: getting paid should not require going into debt.

If you’re looking to start offering earned wage access to your team members or want to make the switch to a new platform, get in touch with Keeper today.