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MD SB31

Commercial Law - Attachment of Wages - Exemptions (Exempt Income Protection Act)


summary

Introduced
01/08/2025
In Committee
01/08/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Altering the amount of wages of a judgment debtor that are exempt from attachment to 150% of the federal poverty level; and requiring an employer served with an attachment to notify the judgment debtor in writing of the amount of wages exempt from attachment, the method used to calculate the amount of attachable wages, and the procedure by which the judgment debtor may contest the attachment.

AI Summary

This bill modifies Maryland's laws regarding wage attachment (the legal process of withholding an employee's earnings to pay a debt) by changing the exemption calculations and notification requirements. Specifically, the bill replaces the previous exemption standard of 75% of disposable wages or 30 times the state minimum wage with a new standard that protects 150% of the federal poverty level for weekly income, based on the size of the judgment debtor's household. The bill also requires employers served with a wage attachment to notify the employee in writing about the exempt wage amount, calculation method, and procedures for contesting the attachment. Additionally, the bill explicitly includes social security, disability, and unemployment benefits in the wage exemption calculation. When multiple attachments are served for the same employee, they will continue to be satisfied in the order received. The changes are set to take effect on July 1, 2025, providing employers and employees time to prepare for the new wage attachment rules.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Senate Finance Hearing (13:00:00 1/30/2025 ) (on 01/30/2025)

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