One bill being reviewed at the Indiana Statehouse would allow employees access to their already-earned wages in between pay cycles.

It’s called the Indiana Earned Wage Access Act (EWA). Republican Senator Kyle Walker is one of the sponsors of the bill.

“An EWA would allow them the option to access these funds that they’ve already earned. The bill allows them to do that with no fee and/or interest,” said Walker during a meeting with the Senate Committee on Insurance and Financial Institutions in early April.

At that same meeting, Erin Macey, director of the Indiana Community Action Poverty Institute, told Walker and other members of the committee that the EWA could possibly trap the most economically vulnerable Hoosiers in a serious cycle of debt.

“One analysis of transactions from these employer integrated wage advanced services showed that when employers are not picking up the costs, 82% of transactions carried fees,” said Macey.

Macey said she noticed a disturbing trend when she experimented with these app-based products.

“One requested $12 for an advance of $50 for seven days. While this current bill proposes to regulate this industry, it places earned wage access products outside of the scope of Indiana’s lending laws. As such, they’re not subject to any rate caps, fee limits, or a criminal loan sharking statute,” said Macey.

Walker said at the meeting that he took Macey’s advice and even added some of her suggestions into the bill’s amendment language.

“I just can’t think of anything that’s more consumer friendly that’s available today. No fees, no recourse, no interest, it’s literally a free option,” said Walker.

Walker also reiterated that if anybody operating the app tries to take advantage of the consumers, they will be held criminally liable.

Several advisors and cosponsors have been added to the bill as it continues to be scrutinized by legislators. The legislative session is supposed to end April 29.