Connecticut has become the 12th US state to regulate on-demand pay, with the bill set to come into effect on 1 October 2025.
The news comes after the state made changes to its banking regulations that eliminated consumers’ ability to pay a fee for instant wage transfers through the Earned Wage Access (EWA) programme, on 1 January 2024.
The Connecticut legislature enables Connecticut workers to have additional freedom of choice, demonstrating on-demand pay’s positive impact on the financial well-being of Connecticut workers. DailyPay, a worktech company and provider of on-demand pay, has welcomed the return of the service in Connecticut.
“DailyPay welcomes the full return of its On-Demand Pay product in the state of Connecticut, and we look forward to serving thousands of hardworking employees in the State upon the legislation’s effective date,” explained Jared DeMatteis, chief legal and strategy officer at DailyPay.
“We also appreciate the state legislature’s recognition of On-Demand Pay’s value in Connecticut and look forward to collaborating with lawmakers to ensure that any proposed regulatory changes, such as fee caps, are evidence-based and consider consumer impact.”
From October, Connecticut users will have access to new ways to access their earned pay. Local users will be able to access no-fee and low-fee transfer options to a bank account of their choosing.
Reintroducing on-demand pay
Many workers in Connecticut who lost access to On-Demand Pay had to go without what they needed or turned to high-cost alternatives to access liquidity, according to a recent independent survey conducted by the University of Connecticut.
These findings helped highlight the need for a solution that would enable on-demand pay to fully operate in the state again to Connecticut legislators, ensuring a critical tool for workers’ financial flexibility was available.
DailyPay’s on-demand pay solution offers employees the ability to access their earned pay when they need it and provides tools to optimise their income, helping them achieve financial stability. The company says it is a safe and important alternative to late fees, overdraft fees, or high-interest credit products.
Governor Ned Lamont signed the on-demand pay bill into law on 8 July 2025.
Source: https://thefintechtimes.com/
