D.C. Court of Appeals Leaves in Place Dismissal of OAG Claims Against EarnIn

Reinforcing Regulatory Clarity for Earned Wage Access, Hogan Lovells Secures Landmark Appellate Victory as Court Chooses Not to Disturb Trial Court's Dismissal of DC OAG Claims

WASHINGTON, Feb. 9, 2026 /PRNewswire/ -- Hogan Lovells, a leading global law firm, secured a significant legal outcome for Activehours, Inc. d/b/a EarnIn before the District of Columbia Court of Appeals, which denied the D.C. Office of the Attorney General's (OAG) request to appeal the dismissal of multiple claims against the leading earned wage access (EWA) provider.

As EWA has expanded nationwide, courts and regulators have increasingly examined how these innovative fintech products should be treated under existing legal frameworks. In the District of Columbia, where EarnIn has consistently maintained that EWA is a distinct and novel product, the case stands out as the first to be dismissed and for that dismissal to be upheld by a state appellate court.

The D.C. Court of Appeals let stand a May 2025 ruling that dismissed most of the D.C. Attorney General's claims against EarnIn. The trial court found that questions about whether EWA is a loan should be addressed by the District's financial regulator — not through enforcement litigation — and ruled that the Attorney General exceeded its authority, leading to the dismissal of OAG's core claims.

"This decision affirms the Superior Court's careful and well-reasoned conclusion that EarnIn's earned wage access product has not been established to be a loan under current District law," said Karl Racine, co-head of the Hogan Lovells State AG practice. "The courts correctly recognized that there is no statute or regulation in the District that classifies earned wage access as lending or subjects these products to usury limits. By allowing that decision to stand, the Court of Appeals has delivered a major win for EarnIn and for earned wage access more broadly, ensuring that innovation can continue in D.C. and that working Americans can access the wages they have already earned, on the timeline they choose."

"This result reinforces the importance of regulatory expertise in evaluating emerging financial products and we're proud of this win on behalf of EarnIn," said partner Jason Downs, who leads the State AG practice alongside Racine. "When it comes to novel and innovative products, the best approach is thoughtful and considered regulation, not litigation. Regulators and legislators are best equipped to fully assess complex policy implications and the benefits of new tools, like EWA. The DCCA's decision recognizes just that."

This reaffirmed victory underscores the strength and continued expansion of Hogan Lovells' State Attorneys General practice, which serves clients navigating complex, multistate investigations and regulatory challenges brought by Attorneys General across the country.

In addition to Racine and Downs, the Hogan Lovells team included partner Jo-Ann Sagar; counsel Lauren Cooper; senior associates Emily Goldenberg, Victoria Glover, and Natalie Salmanowitz; and associates Jessica Valdes Garcia and Steven Higgins, all based in Washington, D.C.

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SOURCE Hogan Lovells