This failed proposal would keep wage garnishments in place until debts are paid and require creditors to send workers regular notices about their rights.
A wage garnishment would stay in place until the debt is paid or a court ends it. The creditor would send the worker notices every 13 weeks, for up to five years.
When support or restitution orders also take money from a worker’s wages, those payments would come first, and the payer would calculate what remains for other creditors.
If the payer has a different address for the worker, it would notify the creditor, who must send required garnishment papers to that address.
A wage garnishment would stay in effect until the debt is paid or a court ends it. This applies to earnings garnishments, including those for people who owe court-ordered victim restitution. A court may end the garnishment sooner. The creditor must send the first notice by the payday of the first affected pay period, then every 13 weeks. Notices stop when the debt is paid, a court ends the garnishment, or five years pass after it takes effect, whichever comes first.
The person or business paying the debtor’s wages would give priority to certain court-ordered support and restitution payments when distributing garnished wages. These rules apply when a debtor’s earnings are also assigned for support or maintenance, or garnished to pay court-ordered restitution. Support assignments take priority over ordinary garnishments and restitution garnishments. Restitution garnishments take priority over ordinary garnishments. Limits apply to the amount left for other creditors, and the payer must notify the creditor and court in certain cases. The payer applies these rules when distributing earnings during an active garnishment.
The person or business paying the debtor’s wages would tell the creditor if its records show a different address, and the creditor would send required papers there. This applies when the payer’s records show an address for the debtor that differs from the address on the garnishment form. The creditor must use one of the listed methods to send the required papers. The payer must notify the creditor in writing within seven business days after receiving the garnishment form.
No hearings or votes scheduled.