What the CFPB Earned Wage Access Advisory Means for HR Professionals

The CFPB’s earned wage access (EWA) advisory opinion arrives at a moment when HR leaders are being asked to do more with less—support retention, reduce financial stress, and drive productivity—without introducing new risk into the employee experience.

Here is the summary:

• The new CFPB guidance clarifies much of the uncertainty around EWA for both HR and Payroll professionals.  We have included a flowchart which lays out both the federal and state considerations for an optimal program.

• One of the CFPB’s strongest signals is that fees fundamentally change how employees experience EWA. Even small fees can cause a product to feel less like a supportive benefit.

• EWA continues to be one of the most sought after employee benefits across corporate America. For HR, the advisory opinion does something important: it acknowledges that earned wage access is an important benefit rather than a fringe perk and that certain EWA is not credit under the Truth in Lending Act. With this new guidance, every employer can feel confident about offering this benefit to its employees. 

Why regulatory clarity matters for HR decision-making

For years, many HR teams hesitated to adopt EWA due to unclear federal guidance. In fact, 62% of employers report they have avoided offering EWA due to regulatory concerns.That hesitation was warranted. Federal ambiguity made it difficult to distinguish between employee-first models and those that introduced hidden risks.

With the CFPB’s advisory opinion, federal clarity now complements existing state-level rules, giving HR leaders more confidence to evaluate EWA as a mainstream benefit rather than an experimental offering.

This clarity enables HR teams to focus on:

• Employee experience

• Equity and inclusion

• Alignment with financial wellness goals

• Long-term impact on retention and engagement

Instead of asking “Is this allowed?” HR can now ask “Is this the right model for our people?”

Are all earned wage access products credit under the Truth in Lending Act and Regulation Z?

The CFPB clarifies that providers that settle as part of the payroll process, or that offer completely free products, are not creditors under the Truth in Lending Action and Regulation Z. 

That distinction matters deeply for HR. When EWA is structured as early wage payment—not as consumer credit under TILA and Regulation Z—it behaves like pay flexibility rather than borrowing. Employees are not treated as borrowers, subjected to repayment pressure, or exposed to downstream financial harm.

For HR leaders, non-credit EWA:

• Feels like pay flexibility, not taking out a loan

• Avoids stigma associated with loans

• Supports dignity and trust in the workplace

This aligns EWA with benefits strategy rather than financial liability.

What does the CFPB say employee-friendly EWA should include?

The advisory outlines guardrails that protect employees by design, not by disclosure:

• No cost to the employee

• Access limited to earned wages (providers can’t offer more than what has accrued)

• No credit checks or underwriting

• No collections or credit reporting

• No debt sold or transferred

• Clear and transparent terms

These principles matter because they prevent EWA from drifting into extractive models or more traditional payday lending models. For HR, that translates into fewer employee escalations, reduced reputational risk, and greater confidence that the benefit delivers on its promise.

Why fee-free EWA matters for employee trust

One of the CFPB’s strongest signals is that fees fundamentally change how employees experience EWA. Even small fees can cause a product to feel less like a supportive benefit.

Research shows employer-integrated EWA is most effective when:

• It is fee-free

• It is paired with savings and credit-building tools

• It supports progress, not dependency

Employers themselves overwhelmingly agree:

• 89% prefer an EWA program that helps users become savers

• 84% prefer EWA integrated with savings and credit-building tools

• 80% prefer EWA as part of a financial wellness platform—not a stand-alone app

For HR, this reinforces that EWA should be designed as a gateway to financial wellness, not a transactional stopgap.

Why EWA matters more than ever

According to the Willis Towers Watson (“WTW”), financial wellbeing is the number 1 employee challenge with 2 in 3 workers seeking support from their employers, financial stress has become a workplace issue. Enterprises increasingly view EWA as:

• A first step toward financial wellness

• A tool to bridge gaps between paydays

• A benefit that can reduce stress, improve retention, and support productivity

In fact, 77% of organizations cite employee wellness as the primary driver of EWA adoption.

The CFPB’s clarity arrives at a moment when employers need solutions that are both compassionate and responsible.

Why Chime Workplace reflects the CFPB’s employee-first vision

Chime Workplace’s earned wage access offering reflects the CFPB federal guidance and offers a sustainable solution that is employer and employee-friendly.

Employees access only wages they have already earned, without credit checks, underwriting, or taking out a loan. If employees are unable to repay, employees are not sent to collections, not reported to credit bureaus, and not treated as debtors. 

The program is completely fee-free, removing friction and financial anxiety at the point of use. Chime Workplace's EWA is embedded within a broader financial wellness platform that includes savings and credit-building tools—supporting long-term financial progress rather than short-term dependency. For HR leaders, this positions Chime Workplace as a people-first earned wage access solution designed in alignment with regulatory guidance and employee wellbeing goals.

Want to learn more about how Chime Workplace is built for the latest CFPB announcement? Let’s connect.