Connecticut Welcomes Back On-Demand Pay

DailyPay, a worktech company and the leading provider of On-Demand Pay, welcomes the full return of its On-Demand Pay service in Connecticut. With the passage of Senate Bill 1396, Connecticut became the 12th state to regulate On-Demand Pay, driving regulatory certainty for the growing industry and users relying on innovative financial products. The bill was signed into law by Governor Ned Lamont on July 8, 2025 and goes into effect on October 1, 2025.

With the passage of SB 1396, On-Demand Pay providers are exempted from Connecticut’s Small Loan Act’s annual percentage rate and other requirements of traditional loans and credit products.

The Connecticut legislature allows Connecticut workers to have additional freedom of choice, demonstrating On-Demand Pay’s positive impact on the financial well-being of Connecticut workers. Upon the law’s effective date, Connecticut users will now have additional ways to access their earned pay. Connecticut users will now have the same flexibility and empowerment that’s helping workers nationwide, with no-fee and low-fee transfer options to a bank account of their choosing.

Recently, an independent survey conducted by the University of Connecticut, found that workers who lost access to On-Demand Pay had to go without what they needed or turned to high-cost alternatives to access liquidity. Realities such as this helped to highlight for Connecticut legislators the need for a solution that would allow On-Demand Pay to fully operate in the state again, ensuring a critical tool for workers’ financial flexibility was available.

DailyPay’s On-Demand Pay solution empowers employees with access to their earned pay when they need it and provides tools to optimize their income, helping them maximize their time, achieve financial stability, and ultimately, become happier and more productive at work. It is a safe and important alternative to late fees, overdraft fees, or high-interest credit products.

With the return of Connecticut On-Demand Pay, it is obvious that wages will change in real time. The focus is once again on earned wage access in Connecticut as more providers return to the market, providing employers with a competitive edge and workers with flexibility.