Nevada Administrative Code Chapter 604d - NEW
đź“Ś Background: NAC Chapter 604D
NAC Chapter 604D regulates providers of Earned Wage Access services in Nevada. It establishes:
Definitions: Who qualifies as a provider, employee, and owner; what counts as “earned wage access.”
Licensing requirements: Providers must apply, disclose ownership, and meet operational standards.
Consumer protections: Prohibitions on certain fees (like cancellation fees) and required disclosures.
Operational standards: Maintaining records, verifying income, and integrating with employer payroll systems.
🧑‍⚖️ Case 1: Misinterpreting “Indirect Data” for Licensing
Situation
QuickPay Now applies for a license. They use third-party workforce platforms to verify wages and consider this “indirect data.”
Issue
The NAC defines indirect data as verified information coming from systems integrated with the employer, not just any payroll platform.
Outcome
The regulator requires QuickPay Now to clarify how their data qualifies as indirect before approving the license.
Lesson: Definitions are strict; misunderstanding them can delay licensure.
🧑‍⚖️ Case 2: Failure to Disclose Ownership
Situation
AdvanceWage LLC submits a license application but does not list a minority owner holding 10% of the company.
Issue
NAC rules require disclosure of all owners with significant ownership stakes.
Outcome
The regulator places the application on hold and requires full disclosure before approval.
Lesson: Transparency in ownership is critical to licensing.
🧑‍⚖️ Case 3: Charging a Cancellation Fee
Situation
FlexPay Access charges a $10 cancellation fee when a user ends participation.
Issue
NAC prohibits any fee for cancelling earned wage access, regardless of what it’s called.
Outcome
FlexPay must refund all cancellation fees and stop the practice immediately.
Lesson: Function matters more than label—fees that act like prohibited charges violate the rules.
🧑‍⚖️ Case 4: Mislabeling the Service
Situation
A company calls its product “earned wage access,” but it allows early withdrawals without verifying actual earned wages from the employer.
Issue
To qualify under NAC, the service must provide access only to earned but unpaid wages verified through employer systems.
Outcome
The company must either restructure the service to comply or reclassify it under a different regulatory framework.
Lesson: The service must meet statutory definitions; names alone aren’t sufficient.
🧑‍⚖️ Case 5: Poor Recordkeeping
Situation
OnTime Access is audited and lacks documentation showing how user wages are verified.
Issue
Regulations require providers to maintain accurate records for compliance verification.
Outcome
The regulator issues a notice requiring complete documentation. Continued failure could lead to license suspension or revocation.
Lesson: Proper recordkeeping is essential to demonstrate compliance and avoid penalties.
🧑‍⚖️ Case 6: Conflict of Interest in Licensing
Situation
An applicant fails to disclose that a major owner also controls another EWA service in a different state.
Issue
NAC rules require disclosure of all ownership interests, and the board may impose conditions to prevent conflicts.
Outcome
The application is paused until disclosure is complete and additional requirements are satisfied.
Lesson: Conflicts of interest must be disclosed to avoid regulatory issues.
🔑 Key Themes from NAC Chapter 604D
Definitions Matter – Misunderstanding “indirect data,” “earned wages,” or service types can block licensing.
Ownership Transparency – All owners must be disclosed; undisclosed interests can delay or block approval.
Consumer Protection – Fees that act like prohibited charges are strictly enforced against.
Operational Compliance – Proper recordkeeping and verification are required.
Service Accuracy – Earned wage access must reflect actual earned income; mislabeling or misclassification violates the rules.
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