Maryland § 12-1501

§ 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.

    (h)    (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.

    (i)    (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.

    (j)    (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.

    (m)    (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.