Bill > HB393

This bill modifies Maryland's commercial law regarding wage attachment, which is a legal process where a creditor can collect money owed by garnishing an employee's wages. The bill makes several key changes: First, it updates the exemption calculation for wage attachment from 75% of disposable wages to 150% of the federal poverty level for a household of the judgment debtor's size, which provides more protection for low-income workers. Second, it requires employers who receive a wage attachment order to notify the employee in writing about the specific amount of wages exempt from attachment, how the attachable wages were calculated, and the procedure for contesting the attachment. The bill also clarifies that medical insurance payments deducted from wages remain exempt from attachment. Additionally, the bill maintains existing rules about satisfying multiple attachments in the order they were received and specifies that employers must remit withheld wages to the creditor within 15 days after each pay period. These changes aim to provide greater financial protection for workers facing wage garnishment by ensuring they retain enough income to meet basic living expenses. The bill is set to take effect on July 1, 2025.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0393?ys=2025RS