S T A T E O F N E W Y O R K
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9644--A
I N A S S E M B L Y
January 21, 2026
___________
Introduced by M. of A. RAGA, LEE -- read once and referred to the
Committee on Banks -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the general obligations law, in relation to the interest
rate and finance charges on cash advances of wages or salary
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "stop
taking our pay act".
§ 2. Legislative intent. It is the intent of the legislature that this
act clarify and codify existing law, including that (i) all wage and
cash advances are loans subject to the interest rate cap set forth in
section 5-501 of the general obligations law; and (ii) finance charges
include any amount paid or payable in connection with a loan, whether
voluntary or otherwise, regardless of how such amount is denominated,
including, but not limited to, tips and subscription costs.
§ 3. Subdivision 2 of section 5-501 of the general obligations law, as
amended by chapter 883 of the laws of 1980 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is amended and
a new subdivision 1-a is added to read as follows:
1-A. "LOAN" SHALL INCLUDE ANY EXTENSION OF CREDIT OR ADVANCE OF MONEY
ON A BORROWER'S FUTURE, EARNED, OR POTENTIAL SOURCE OF MONEY, INCLUDING
FUTURE PAY, SALARY, AND EARNED BUT UNPAID WAGES OR INCOME.
2. No person or corporation shall, directly or indirectly, charge,
take or receive any money, goods or things in action as interest on the
loan or forbearance of any money, goods or things in action at a rate
exceeding the rate above prescribed. The amount charged, taken or
received as interest shall include any and all amounts paid or payable,
directly or indirectly, VOLUNTARY OR OTHERWISE, by any person, to or for
the account of the lender [in consideration for making], INCLUDING ANY
DISCOUNT APPLIED TO ANY AMOUNTS ADVANCED, IN CONNECTION WITH the loan or
forbearance as defined by the superintendent of financial services
pursuant to subdivision three of section fourteen-a of the banking law,
INCLUDING FEES, CHARGES, TIPS, SUBSCRIPTION COSTS, AND ANY OTHER AMOUNT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14525-02-6
A. 9644--A 2
PAID OR PAYABLE, except such fee as may be fixed by the commissioner of
taxation and finance as the cost of servicing loans made by the property
and liability insurance security fund.
§ 4. This act shall take effect immediately.