![]() įinancial Code section 2003, subdivision (q), defines “money transmission” to include receiving money for transmission. However, in the event that the employee does not receive a wage payment from the employer corresponding to the advance, _ does not have recourse against either the employer or the employee if the employee fails to repay _. Alternatively, the employee can elect to repay the advance directly by authorizing _ to debit the employee’s bank account for the amount of the advance. The employee authorizes the employer to make a deduction from the employee’s next scheduled paycheck in the amount of the advance and to pay such amount directly to _. Under _’s program, in exchange for a payroll advance, a participating employee sells his or her future received wage payment to _. ‘Client’ is defined as _.” The Employee Wellness Services Agreement (“_ Wellness Agreement”) between _ and an employer specifies: “_ has the responsibility of funding the payments to participating employees, and the employer shall not be obligated to fund such payments.” The Master Agreement between _ (an affiliate of _) and _ (“Master Agreement”) provides: “_ will debit the account containing ‘Client’s funds’ for transfers to beneficiaries. The relevant agreements confirm this fact. The funds that _ transmits are _’s own funds. _ does not receive funds directly from employers. As the funds are leveraged to pay participating employees, _ replenishes its wallet, to ensure sufficient funds at all times to support _’s projected disbursements activity. _ is repaid by the employers when the participating employee’s wages are reconciled or by the employee directly via a debit by _ from the employee’s bank account. In order to disburse payroll advances, _ funds its wallet in _’s bank account and provides payment instructions to _. This contractual relationship allows _ to verify, through the employer, the wages that an employee has earned in order to determine the amount the employee is eligible to transfer. _ contracts with both the employee and the employer. These advances can be used to fund a participating employee’s Health Savings Account, Health Reimbursement Account, and/or Flexible Spending Account, or as a general payroll advance. _ offers an electronic payment solution in which its non-employer clients can utilize _’s Digital Disbursements platform to transfer payroll advances to individuals. _ is a California money transmitter licensee. _ (“_”) has requested a determination that its digital disbursements offering (“Digital Disbursements”) qualifies for the payroll processing exemption in Financial Code section 2010, subdivision (j). Thank you for your letter to the Department of Business Oversight (“Department”) dated March 11, 2020, which provided additional information requested by the Department. Re: _ – Request for Exemption under Financial Code section 2010(j)
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