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The Uniform Wage
Garnishment Act
●William Dunn, CPPDirector, Government Relations
2
● What is the UWGA?
● Why do we need it?
● Major provisions
● Enactment
● National Conference of Commissionersfor Uniform State Laws
◦ Uniform Interstate Family Support Act
◦ Uniform Electronic Transactions Act
◦ Uniform Commercial Code
5
● Answer directly to creditor
◦ Reduce court costs
◦ ERs won’t need attorneysto handle garnishments
● Parties retain right to petition court
7
● Workers treated as EEs for FIT
● Former EEs owed earnings
● Independent contractors receivingperiodic payments from employer
● Garnishment served in state of EE’sprincipal place of employment◦ EE can attend court proceeding without
traveling out of state
◦ Exemption if ER is not subject to jurisdiction in statewhere EE works
● Served on ER’s registered agent
● Order must include◦ Debtor’s name and last known address
◦ Amount owed
◦ Something to identify the debt
◦ Name & address of creditor’s agent
● Separately, creditor must provide debtor’s◦ Date of birth
◦ Full Social Security number
◦ Or else state that date or number is not known
● Provided only to ER◦ Not filed with the court
◦ Does not become public document
● Plain language notice explains◦Why am I getting this notice?
◦How much do I owe?
◦How will the amount I owe be paid?
◦What options do I have?
◦What if I don’t do anything?
● Single up-front fee◦ Paid at time of service‒ APA suggests $75
◦ Likely charged back to EE
● Two-fee structure◦ Up-front fee to be paid at time of service
‒ APA suggests $20
◦ Per-payment fee deducted from paycheck
‒ APA suggests $3.50
AK
HI
OH
CAVA
MI
GA
KS
IA PA
WV
MS
ORSD
MO
WI
MN
KY
SC
FL
NC
UT
AZ
ND
NM OK
TN
NE
WY
LA
IL IN
AR
NY
CO
AL
MT
ID
NV
TX
MEWA
NH
VT
MA
RI
CT
NJ
DE
MD
DC
Per payment fee (11) No fee allowed for creditor garnishment (25)One-time fee (13) Up-front and per payment fee (2)
State Administrative Fees
● ER has 21 days to answer
● Reasons for refusal:◦ EE doesn’t work for ER
◦ Garnishment not served in EE’s work state
◦ Order is incomplete
◦ No administrative fee
AK
HI
OH
CAVA
MI
GA
KS
IA PA
WV
MS
ORSD
MO
WI
MN
KY
SC
FL
NC
UT
AZ
ND
NM OK
TN
NE
WY
LA
IL IN
AR
NY
CO
AL
MT
ID
NV
TX
MEWA
NH
VT
MA
RI
CT
NJ
DE
MD
DC
Garnishee response time
immediatelyWithin 1 week (2-7 days)Within 2 weeks
Within 3 weeks (15-21 days)30 days or moreVaries, per pay period, or N/A
● If ER refuses order, creditor has 21 days to:
◦ Seek dismissal of the garnishment action or
◦ Request hearing to determine whether ER mustproceed
● If garnishment is OK, ER must:◦ Tell creditor’s agent that debtor works for ER
◦ Include pay frequency, date of next payday
◦ Include name, contact info for ER contact
◦ Notify the EE of garnishment
● 1st payday at least 30 days afterER notifies EE of garnishment◦ Gives EE time to act
● Withholding limits set by state◦ Format like Consumer Credit Protection Act
‒ Lesser of:
[x]% disposable income Amount >[x] x [fed]/[state] minimum wage
AK
HI
OH
CAVA
MI
GA
KS
IA PA
WV
MS
ORSD
MO
WI
MN
KY
SC
FL
NC
UT
AZ
ND
NM OK
TN
NE
WY
LA
IL IN
AR
NY
CO
AL
MT
ID
NV
TX
MEWA
NH
VT
MARI
CT
NJ
DE
MD
DC
CCPA limitsModified CCPA: min wage multiplierModified CCPA: % withheld
State Withholding Limits
Fixed amountOtherNot applicable
MA
● ER pays creditor within 5 days
● Payable by check or EFT, if available
● Payments for multiple EEs to samecreditor may be combined
● On service, creditor declares amount owed
● If EE does not dispute amount,ER withholds until paid in full
● Garnishment ceases when◦ ER’s records show that debt is paid in full or
◦ Debtor no longer works for ER
AK
HI
OH
CAVA
MI
GA
KS
IA PA
WV
MS
ORSD
MO
WI
MN
KY
SC
FL
NC
UT
AZ
ND
NM OK
TN
NE
WY
LA
IL IN
AR
NY
CO
AL
MT
ID
NV
TX
MEWA
NH
VT
MA
RI
CT
NJ
DE
MD
DC
ContinuousOther (1, 60, 90, 120, 179, 180, 182 days; 13 weeks; 6, 60 months; 1 year)Not applicable
State Garnishment Period
● ER tells creditor’s agent within 21 days
● Creditor has 21 days to seek dismissalof garnishment once told:◦ Debt is paid or
◦ Employment terminated
● ERs must◦ Keep record of amount withheld each pay period
◦ Prepare calculation worksheet showinghow payment is determined
● ERs provide copy upon request◦ To employee:
‒ no more than1 worksheet per pay period
◦ To creditor:
‒ no more than4 worksheets per year
● 2 or more garnishments of equal prioritymay be withheld at same time
◦ Amounts divided equally among creditors
● No change to priority under state law
◦ Child support still has priority overcreditor garnishments
● After receiving notification of default◦ Fines may apply for‒ Failure to respond to a garnishment
‒ Failure to withhold
‒ Failure to remit
● Fines range from $5 a day to $20 a day
◦ May not exceed amount of debt
● Fines paid to creditor are applied to EE’s debt
● ER cannot recoup amount from EE
● Sanctions only imposed if debtor or creditorfiles motion with court describing misconduct◦ Once notified, ER has time to comply
◦ Time depends on nature of misconduct
● Court may waive all or part of sanctions
● ER cannot fire or punish EE for garnishment
● Creditor wrongly seeking garnishmentsubject to court fine◦ Fines not to exceed $1,000
● Bad faith◦ Failing to stop garnishment within 7 days
of being notified garnishment is wrongful
◦ Failing to request court hearing to determinewhether garnishment was wrongful
◦ After 7 days, $50 daily fine may apply
● Creditors must refund $$ withheld fromdebtor in past 60 days◦ Court may award or waive fines as appropriate
35
● Coalition partners◦ Uniform Law Commission
◦ American Payroll Association
◦ Creditor attorneys
◦ National Association of Consumer Advocates
AK
HI
OH
CAVA
MI
GA
KS
IA PA
WV
MS
ORSD
MO
WI
MN
KY
SC
FL
NC
UT
AZ
ND
NM OK
TN
NE
WY
LA
IL IN
AR
NY
CO
AL
MT
ID
NV
TX
MEWA
NH
VT
MA
RI
CT
NJ
DE
MD
DC
UWGA introducedUWGA enacted
Enactment
● UWGA Fact Sheet
● UWGA Summary
● UWGA Final Act
● APA Endorsement Letter
● “Why Your State Should Adopt”
● Download: www.uniformlaws.org/Acts.aspx
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