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FlexWage Receives First of Its Kind Earned Wage Access Legal Opinion from California’s DFPI

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FlexWage watershed Legal Opinion from DFPI, validating that FlexWage and its EWA clients are not subject to California lending nor deferred deposit laws.

FlexWage was designed from day one to strike an elegant balance between employee needs, employer desires, and regulatory constraints. Our dedication to doing it right has delivered sustainability.”
— Frank Dombroski
SCOTTSDALE, ARIZONA, UNITED STATES, February 23, 2022 / -- FlexWage Solutions, the patented inventor of Earned Wage Access, has received the first ever legal opinion from California’s Department of Financial Protection and Innovation (DFPI) stating that, “for its EWA solution, neither FlexWage nor its employer partners are subject to licensing requirements by the California Financing Law (CFL) or California Deferred Deposit Transaction Law (CDDTL).”

With this watershed opinion, employers and partners of FlexWage can feel confident that the FlexWage EWA solution is the only solution in the market that has received a legal opinion from California’s top financial regulator. In the opinion of California’s DFPI, FlexWage can operate without a license.

“FlexWage has been engaged with regulators and consumer advocates since creating OnDemand Pay in 2010. Our solution was designed to provide employers and employees with sustainable financial empowerment benefits while meeting the complexities of federal and state labor, banking and lending laws” said Frank Dombroski, FlexWage Founder and CEO. “We believe regulatory clarity will help eliminate some of the misconception and misrepresentation that has become pervasive on our marketplace. We have always described our solution as ‘Earned Wage Access done right’ and this strong and positive opinion from California supports that.”

In arriving at their conclusion, California’s DFPI described several key attributes of the FlexWage EWA solution that led to their opinion:
• Funding Source – Employer funded
• Data Integration with near zero risk of overpayment – Accurate net earned wage calculation
• Funds Delivery - Instantly to the employee’s account of choice
• Fee Structure – High dollar value transactions, low fees, pay cycle and monthly caps

It goes on to state: “A third-party with no financial obligation to the employee could not rely upon this reasoning, because the funds provided would be for the recipient’s temporary use, and the third-party would presumably arrange to recoup the amounts it advanced.”

California’s DFPI has been recognized by industry analysts, EWA providers, and consumer advocates for its leadership position in taking a thoughtful, thorough and diligent approach to understanding and regulating the complex Earned Wage Access industry.

For the full opinion on FlexWage’s Earned Wage Access solution, refer to the linked opinion letter on DFPI’s official site.

About FlexWage
FlexWage Solutions LLC is the patented inventor of Earned Wage Access and created this industry in 2010. Our mission is to provide workers with safe and responsible solutions to assist them on their journey to better financial wellness. We believe financial security begins most effectively at the workplace. Utilizing earned wages to manage cash flow volatility enables employees to avoid the high cost and stress induced by bank overdraft, late fees and short-term loans. Once established on more solid footing, employees are more receptive to financial education, budgeting and planning. FlexWage provides our Financial Wellness solutions through employers, to assist employees with each step of their journey.

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