[Federal Register Volume 80, Number 195 (Thursday, October 8, 2015)]
[Rules and Regulations]
[Pages 60797-60802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25427]
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DEPARTMENT OF LABOR
Office of the Secretary
29 CFR Part 20
RIN 1290-AA27
Administrative Wage Garnishment Procedures
AGENCY: Office of the Secretary, Labor.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule will allow the U.S. Department of Labor (Department)
to garnish the disposable wages of non-federal workers who are indebted
to the Department without first obtaining a court order. It implements
the administrative wage garnishment provisions contained in the Debt
Collection Improvement Act of 1996 (DCIA) in accordance with the
regulations issued by the Secretary of the Treasury.
DATES: This rule is effective October 8, 2015. Comments must be
received within 30 days of publication, which is on or before November
9, 2015.
ADDRESSES: You may submit written comments to the docket using any one
of the following methods:
(1) Federal eRulemaking Portal: http://www.regulations.gov.
(2) Mail: Address comments concerning this interim rule to Shelia
Alexander, Office of Chief Financial Officer, U.S. Department of Labor,
Frances Perkins Building, Room S4030, 200 Constitution Avenue NW.,
Washington, DC 20210.
(3) Email: Comments may also be submitted by electronic mail to
[email protected].
Additionally, any comments that concern information collection may
be sent to the Office of Information and Regulatory Affairs, Attention
OMB Desk Officer for DOL, Office of Management and Budget, Room 10235,
New Executive Office Building, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Shelia Alexander, Office of the Chief
Financial Officer, (202) 693-4472; or Rachel Rikleen, Office of the
Solicitor, (202) 693-5702.
SUPPLEMENTARY INFORMATION:
I. Background
Section 31001(o) of the Debt Collection Improvement Act of 1996
(DCIA), which is codified at 31 U.S.C. 3720D, authorizes federal
agencies to use administrative procedure to garnish the disposable pay
of an individual to collect delinquent non-tax debt owed to the United
States in accordance with regulations promulgated by the Secretary of
the Treasury. Wage garnishment is a process whereby an employer
withholds amounts from an employee's wages and pays those amounts to
the employee's creditor pursuant to a withholding order. Under the
DCIA, agencies may garnish up to 15% of a delinquent non-tax debtor's
disposable wages. Prior to the enactment of the DCIA, agencies were
generally required to obtain a court
[[Page 60798]]
judgment before garnishing the wages of non-Federal employees.
The DCIA requires the Secretary of the Treasury to issue
regulations implementing the administrative wage garnishment
requirements. These implementing regulations, which are at 31 CFR
285.11, provide for due process for nontax debtors and require agencies
to publish regulations for administrative wage garnishment hearings.
Pursuant to 31 CFR 285.11(f), federal agencies must either prescribe
regulations for the conduct of an administrative wage garnishment
hearing consistent with the procedures set forth in section 285.11 or
adopt section 285.11 without change by reference. Through this rule,
the Department has decided to issue its own regulations consistent with
the procedural requirements of section 285.11.
This interim rule governs only administrative wage garnishment.
Nothing in this regulation precludes the use of collection remedies not
contained in the regulation. The Department and other federal agencies
may simultaneously use multiple collection remedies to collect a debt,
except as prohibited by law.
The Department may, but is not required to, promulgate additional
policies, procedures, and understandings consistent with this
regulation and other applicable Federal laws, policies, and procedures,
subject to the approval of the Department's Chief Financial Officer or
their delegate. The Department does not intend for its components,
agencies, and entities to be able to adopt different policies,
procedures, or understandings.
II. Public Participation
The Department is issuing this interim final rule to provide the
public with an opportunity to comment. The Department must receive
comments by the deadline stated above, which is no later than 30 days
after this notice appears in the Federal Register.
III. Compliance With the Administraive Procedure Act; The Paperwork
Reduction Act; The Regulatory Flexibility Act; The Unfunded Mandates
Reform Act; and Executive Orders 12866, 12988, and 13132
For purposes of the Administrative Procedure Act, 5 U.S.C. 551-559,
this rule involves an agency procedure or practice, and therefore no
notice of proposed rulemaking is required under section 553.
Nonetheless, this is an interim rulemaking, with a provision for a 30-
day public comment period. The Department will review all comments
received during the comment period and will consider any modifications
that appear appropriate in adopting these rules as final.
The Department has determined that this rule contains no collection
of information subject to the Paperwork Reduction Act, 44 U.S.C. 3501-
3521. However, the Department specifically invites comments on this
determination. In addition to having an opportunity to file comments
with the Department, comments about the paperwork implications of the
proposed regulations may be addressed to the Office of Management and
Budget (OMB). Comments to the OMB should be directed to: Office of
Information and Regulatory Affairs, Attention OMB Desk Officer for the
DOL, Office of Management and Budget, Room 10235, Washington, DC 20503;
Telephone: 202-395-7316/Fax: 202-395-6974 (these are not toll-free
numbers). You can also submit comments to the OMB by email at
[email protected]. The OMB will consider all written comments
that agency receives within 30 days of publication of this rule.
(Commenters are encouraged, but not required, to send a courtesy copy
of any comments submitted to the OMB regarding the information
collections by mail or courier to: U.S. Department of Labor-OASAM,
Office of the Chief Information Officer, Attn: Departmental Information
Compliance Management Program, Room N1301, 200 Constitution Avenue NW.,
Washington, DC 20210; or by email: [email protected].) As
previously indicated, written comments directed to the Department may
be submitted within 30 days of publication of this notice. Should a
commenter believe this rule contains a covered information collection,
then the Department and OMB seek comments that:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
(2) Evaluate the accuracy of the agency's estimate of the burden of
the proposed collection of information, including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires
administrative agencies to consider the effect of their actions on
small entities, including small businesses. Because no notice of
proposed rulemaking is required for procedural rules, the requirements
of the RFA pertaining to regulatory flexibility analysis do not apply.
However, even if the RFA were to apply, the Department certifies that
this interim rule will not have a significant impact on a substantial
number of small entities. Although the employer of a delinquent debtor
would have to certify certain information about the debtor such as the
debtor's employment status and earnings, that information is normally
in the employer's payroll records. It would not take a significant
amount of time or result in a significant cost for an employer to make
this certification. An employer is not required to vary its normal pay
cycle to comply with a garnishment order issued under these
regulations.
For purposes of the Unfunded Mandates Reform Act (UMRA), 2 U.S.C.
1501-1516, the Department has determined that the rule contains no
Federal mandates, as defined in Title II of UMRA. Therefore the rule is
not subject to the requirements of section 202 and 205 of UMRA.
Executive Orders 12866 and 12988 require that each agency write
regulations that are easy to understand and specify how individual
civil litigation rights will be affected. The Department has determined
that this rule is drafted, to the extent practicable, under the
standards established in those orders. However, the Secretary invites
comments on how to make these proposed regulations easier to
understand.
Executive Order 13132 requires us to ensure meaningful and timely
input by state and local elected officials in the development of
regulatory policies that have federalism implications. The interim rule
does not have substantial direct effects on the States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government.
IV. Summary of Key Aspects of the Rule
This rule applies to debts owed to the Department or in connection
with any program administered by the Department. The administrative
wage garnishment process will be applied consistently throughout the
Department.
[[Page 60799]]
The Department can enter into agreements, such as memoranda of
understanding, with other Federal agencies permitting that agency to
administer part or all of the Department's administrative wage
garnishment process. Nothing in this regulation requires the Department
to duplicate notices or administrative proceedings required by
contract, this regulation, or other laws or regulations. Thus, for
example, the Department is not required to provide a debtor with two
hearings on the same issue merely because two different collection
tools are used, each of which requires that the debtor be provided with
a hearing.
Section 20.205 lists the notice requirements, which includes an
explanation of the debtor's rights. The debtor is allowed to inspect
Department records related to the debt, enter into a written repayment
agreement, and have a hearing. A debtor can request one of two types of
available hearings--a paper hearing or an oral hearing. The format of
oral hearings is not limited to in-person and telephone hearings and
may include new forms of technology. The hearing official has the
authority to determine the kind of hearing and the amount of time
allotted each hearing.
If a hearing is held, the Department can meet its initial burden by
offering documentation, including a copy of the debt adjudication,
which demonstrates the existence of the debt and its amount. Once the
Department has established its prima facie case, the debtor can dispute
the existence or amount of the debt. For example, the debtor can meet
his or her burden by demonstrating that he or she is not the person who
owes a debt to the Department, that he or she has not received payments
from the Department or has not been fined by the Department, or that he
or she has already paid the debt.
Additionally, the Federal Employees Compensation Act (FECA), 5
U.S.C. 8101-8193, contains a provision that precludes administrative
and judicial review of agency determinations, which normally includes a
repayment schedule. As a result, for hearings related to FECA debts,
once the Department has made its prima facie case, the debtor has only
two limited grounds on which he or she can demonstrate that an
administrative wage garnishment is not appropriate. The debtor may not
challenge the underlying merits of the determination that created the
debt.
Section 20.209 describes how much the Department can withhold
through administrative wage garnishment, which is up to 15%, and the
employer's administrative wage garnishment duties. A withholding order
for family support would always have priority over an administrative
wage garnishment order. If there are multiple federal garnishment
orders, priority depends on which garnishment order was first obtained.
When a debtor's disposable pay is already subject to one or more
withholding orders with higher or equal priority with the Department's
administrative wage garnishment order, the amount that the employer
must withhold and remit to the Department would not be more than an
amount calculated by subtracting the amount(s) withheld under the other
withholding order(s) from 25% of the debtor's disposable pay. For
example, if the employer is withholding 20% of a debtor's disposable
pay for a family support or prior withholding order, the amount
withheld for the subsequent withholding order issued under this section
is limited to 5% of the debtor's disposable pay. When the family
support or prior withholding order terminates, the amount withheld for
the subsequent withholding order issued under this section may be
increased to 15%.
List of Subjects in 29 CFR Part 20
Administrative wage garnishment, debt collection, Labor.
Signed at Washington, DC, on this 29th day of September, 2015.
Thomas E. Perez,
U.S. Secretary of Labor.
For the reasons set forth in the preamble, the Department of Labor
amends part 20 of title 29 of the Code of Federal Regulations as
follows:
PART 20--FEDERAL CLAIMS COLLECTION
0
1. The authority citation for part 20 is revised to read as follows:
Authority: 31 U.S.C. 3711 et seq.; Subpart D is also issued
under 5 U.S.C. 5514; Subpart E is also issued under 31 U.S.C. 3720A;
Subpart F is also issued under 31 U.S.C. 3720D.
0
2. Add subpart F to read as follows:
Subpart F--Administrative Wage Garnishment
Sec.
20.201 Purpose.
20.202 Scope.
20.203 Definitions.
20.204 General rule.
20.205 Notice requirements.
20.206 Hearing.
20.207 Wage garnishment order.
20.208 Certification by employer.
20.209 Amounts withheld.
20.210 Exclusions from garnishment.
20.211 Financial hardship.
20.212 Ending garnishment.
20.213 Actions prohibited by employer.
20.214 Refunds.
20.215 Right of Action.
Sec. 20.201 Purpose.
This section provides procedures the U.S. Department of Labor may
use to collect money from a debtor's disposable pay by means of
administrative wage garnishment to satisfy delinquent nontax debt owed
to the Department. In accordance with the procedures set forth in 31
U.S.C. 3720D and 31 CFR 285.11, the Department may request that a non-
Federal employer garnish the disposable pay of an individual to collect
delinquent non-tax debt owed to the Department or in connection with
any program administered by the Department.
Sec. 20.202 Scope.
(a) This subpart applies to any non-tax debt owed to the U.S.
Department of Labor or in connection with any program administered by
the Department and to any entity that pursues recovery of such debt.
The Department can enter into arrangements with other federal agencies
to carry out its responsibilities under this part.
(b) This subpart shall apply notwithstanding any provision of State
law.
(c) Nothing in this subpart precludes the compromise of a debt or
the suspension or termination of a collection action in accordance with
applicable law. See, for example, the Federal Claims Collection
Standards (FCCS), 31 CFR parts 900-904.
(d) The receipt of payments pursuant to this subpart does not
preclude the Department from pursuing other debt collection remedies
separately or in conjunction with administrative wage garnishment,
including the offset of Federal payments, to satisfy delinquent nontax
debt owed to the Department.
(e) This subpart does not apply to the collection of delinquent
nontax debt owed to the United States from the wages of Federal
employees from their Federal employment. Federal pay is subject to the
Federal salary offset procedures set forth in 5 U.S.C. 5514 and other
applicable laws.
(f) Nothing in this subpart requires the Department to duplicate
notices or administrative proceedings required by contract, this
subpart, or other laws, regulations, or procedures.
Sec. 20.203 Definitions.
As used in this section the following definitions shall apply:
(a) The term business day means Monday through Friday, not
including Federal legal holidays. For purposes of
[[Page 60800]]
computation, the last day of the period will be included unless it is a
Federal legal holiday.
(b) The term day means calendar day. For purposes of computation,
the last day of the period will be included unless it is a Saturday, a
Sunday, or a Federal legal holiday.
(c) The term debt or claim means any amount of money, funds or
property that has been determined by an appropriate official of the
Federal Government to be owed to the Department by an individual,
including debt administered by a third party as an agent for the
Federal Government.
(d) The term debtor means an individual who owes a delinquent
nontax debt to the Department.
(e) The term delinquent nontax debt means any nontax debt that has
not been paid by the date specified in the initial written demand for
payment, or applicable agreement, unless other satisfactory payment
arrangements have been made. For purposes of this section, the terms
``debt'' and ``claim'' are synonymous and refer to delinquent nontax
debt.
(f) The term Department means the United States Department of
Labor.
(g) The term disposable pay means that part of the debtor's
compensation (including, but not limited to, salary, bonuses,
commissions, and vacation pay) from an employer remaining after the
deduction of health insurance premiums and any amounts required by law
to be withheld. For purposes of this subpart, ``amounts required by law
to be withheld'' include amounts for deductions such as social security
taxes and withholding taxes but do not include any amount withheld
pursuant to a court order.
(h) The term employer means a person or entity that employs the
services of others and that pays their wages or salaries. The term
employer includes, but is not limited to, State and local Governments
but does not include an agency of the Federal Government.
(i) The term evidence of service means information retained by the
Department indicating the nature of the document to which it pertains,
the date of mailing of the document, and to whom the document is being
sent. Evidence of service may be retained electronically so long as the
manner of retention is sufficient for evidentiary purposes.
(j) The term garnishment means the process of withholding amounts
from an employee's disposable pay and the paying of those amounts to a
creditor in satisfaction of a withholding order.
(k) The term hearing official means any qualified individual, as
determined by the Department.
(l) The term withholding order means any order for withholding or
garnishment of pay issued by the Department. For purposes of this
section, the terms ``wage garnishment order'' and ``garnishment order''
have the same meaning as ``withholding order.''
Sec. 20.204 General rule.
Whenever the Department determines that a delinquent debt is owed
by an individual, to the Department or in connection with any program
administered by the Department, the Department may initiate proceedings
administratively to garnish the wages of the delinquent debtor.
Sec. 20.205 Notice requirements.
(a) At least 30 days before the initiation of garnishment
proceedings, the Department shall mail, by first class mail to the
debtor's last known address a written notice informing the debtor of:
(1) The nature and amount of the debt;
(2) The intention of the Department to initiate proceedings to
collect the debt through deductions from pay until the debt and all
accumulated interest, penalties and administrative costs are paid in
full; and
(3) An explanation of the debtor's rights, including those set
forth in paragraph (b) of this section, and the time frame within which
the debtor may exercise his or her rights.
(b) The debtor shall be afforded the opportunity:
(1) To inspect and copy the Department's records related to the
debt;
(2) To enter into a written repayment agreement with the Department
under terms agreeable to the Department; and
(3) For a hearing in accordance with Sec. 20.206 before a hearing
official. The debtor is not entitled to a hearing concerning the terms
of the proposed repayment schedule if these terms have been established
by written agreement under 20.206(b)(2).
(c) The Department will retain evidence of service indicating the
date of mailing of the notice.
Sec. 20.206 Hearing.
(a) Request for hearing. If the debtor submits a written request
for a hearing concerning the existence or amount of the debt or the
terms of the repayment schedule, the Department shall provide a written
or oral hearing in accordance with 31 CFR 285.11(f) before a hearing
official.
(b) Type of hearing or review. (1) For purposes of this subpart,
whenever the Department is required to afford a debtor a hearing, the
Department shall provide the debtor with a reasonable opportunity for
an oral hearing when the hearing official determines that the issues in
dispute cannot be resolved by review of the documentary evidence, for
example, when the validity of the claim turns on the issue of
credibility or veracity.
(2) If a hearing official determines that an oral hearing is
appropriate, the time and location of the hearing, including the amount
of time allotted for the hearing, shall be at the discretion of the
hearing official. An oral hearing may, at the discretion of the hearing
official, be conducted either in-person, by telephone conference, or by
other electronic means. All travel expenses incurred by the debtor in
connection with an in-person hearing will be borne by the debtor. All
charges incurred during the hearing as a result of the use of telephone
conference or other electronic means will be the responsibility of the
Department.
(3) In those cases when an oral hearing is not required by this
section, a hearing official shall nevertheless accord the debtor a
``paper hearing,'' that is, a hearing official will decide the issues
in dispute based upon a review of the written record. The hearing
official will establish a reasonable deadline for the submission of
evidence.
(c) Effect of timely request. Subject to Sec. 20.206(k), if the
debtor's written request is received by the Department on or before the
15th business day following the mailing of the notice described in
Sec. 20.205(a), the Department shall not issue a withholding order
under Sec. 20.207 until the debtor has been provided the requested
hearing and a decision in accordance with paragraphs (h) and (i) of
this section has been rendered.
(d) Failure to timely request a hearing. If the debtor's written
request is received by the Department after the 15th business day
following the mailing of the notice described in Sec. 20.205(a), the
Department shall provide the debtor with a hearing before a hearing
official. However, the Department will not delay issuance of a
withholding order unless the Department determines that the delay in
filing the request was caused by factors beyond the debtor's control or
the Department receives information that the Department believes
justifies a delay or cancellation of the withholding order.
(e) Procedure. After the debtor requests a hearing, the hearing
official shall notify the debtor of:
(1) The date and time of a hearing conducted by telephone
conference or other electronic means;
[[Page 60801]]
(2) The date, time, and location of an in-person oral hearing; or
(3) The deadline for the submission of evidence for a written
hearing.
(f) Burden of proof. (1) The agency will have the burden of going
forward to prove the existence or amount of the debt. The Department
can satisfy this burden by submitting a certified copy of the
adjudication or other document that establishes the existence of the
debt and the amount of the debt.
(2) Thereafter, if the debtor disputes the existence or amount of
the debt, the debtor must show by a preponderance of the evidence that
no debt exists or that the amount of the debt is incorrect. In
addition, the debtor may present evidence that:
(i) The terms of the repayment schedule are unlawful;
(ii) The terms would cause a financial hardship to the debtor; or
(iii) The collection of the debt may not be pursued due to
operation of law.
(3) Debts that arise under the Federal Employees Compensation Act,
5 U.S.C. 8101-8193, are subject to preclusion of administrative and
judicial review, as described at 5 U.S.C. 8128(b). As a result, once
the Department meets its burden of showing the existence and amount of
a debt under this statute, the debtor must prove by a preponderance of
the evidence that:
(i) The documentation put forward by the agency to establish the
debt was not authentic; or
(ii) The debt was incurred by someone other than the debtor as a
result of identity theft.
(g) Record. The hearing official must maintain a summary record of
any hearing provided under this section.
(h) Hearing procedure. A hearing is an informal process and the
hearing official is not bound by common law or statutory rules of
evidence or by technical or formal rules of procedure. However,
witnesses who testify in oral hearings must do so under affirmation, so
that 18 U.S.C. 1001 applies.
(i) Date of decision. The hearing official shall issue a written
opinion stating his or her decision, as soon as practicable, but not
later than 60 days after the date on which the request for such hearing
was received. If a hearing official is unable to provide the debtor
with a hearing and render a decision within 60 days after the receipt
of the request for such hearing:
(1) The Department may not issue a withholding order until the
hearing is held and a decision rendered; or
(2) If the Department had previously issued a withholding order to
the debtor's employer, the Department must suspend the withholding
order beginning on the 61st day after the receipt of the hearing
request and continuing until a hearing is held and a decision is
rendered.
(j) Content of decision. The written decision shall include:
(1) A summary of the facts presented;
(2) The hearing official's findings, analysis, and conclusions; and
(3) The terms of any repayment schedules, if applicable.
(k) Final agency action. The hearing official's decision will be
the final agency action for the purposes of judicial review under the
Administrative Procedure Act, 5 U.S.C. 701-706.
(l) Failure to appear. In the absence of good cause shown to the
hearing official, a debtor who fails to appear at a hearing scheduled
pursuant to this section will be deemed as not having timely filed a
request for a hearing.
Sec. 20.207 Wage garnishment order.
(a) Unless the Department receives information that the Department
believes justifies a delay or cancellation of the withholding order,
the Department shall send, by first class mail, a withholding order to
the debtor's employer:
(1) Within 30 days after the debtor fails to make a timely request
for a hearing (i.e., within 15 business days after the mailing of the
notice described in Sec. 20.205(a), or,
(2) If a timely request for a hearing is made by the debtor, within
30 days after a final decision is made by the hearing official, or,
(3) As soon as reasonably possible thereafter.
(b) The withholding order sent to the employer under paragraph (a)
of this section shall be in the form prescribed by the Secretary of the
Treasury. The withholding order shall contain the signature of, or the
image of the signature of, the Secretary of Labor or his or her
delegatee. The order shall contain only the information necessary for
the employer to comply with the withholding order. Such information
includes the debtor's name, address, and Employee Identification
Number, as well as instructions for withholding and information as to
where payments should be sent.
(c) The Department will retain evidence of service indicating the
date of mailing of the order.
Sec. 20.208 Certification by employer.
Along with the withholding order, the agency shall send to the
employer a certification in the form prescribed by the Secretary of the
Treasury. The employer shall complete and return the certification to
the Department within the time frame prescribed in the instructions to
the form. The certification will address matters such as information
about the debtor's employment status and disposable pay available for
withholding.
Sec. 20.209 Amounts withheld.
(a) After an employer receives a garnishment order, the employer
must deduct from all disposable pay paid to the applicable debtor
during each pay period the amount of garnishment described in paragraph
(b) of this section.
(b) Subject to the provisions in paragraphs (c) and (d) of this
section, the amount of garnishment shall be the lesser of:
(1) The amount indicated on the garnishment order up to 15 percent
of the debtor's disposable pay; or
(2) The amount set forth in 15 U.S.C. 1673(a)(2) (Restriction on
Garnishment). The amount set forth at 15 U.S.C. 1673(a)(2) is the
amount by which a debtor's disposable pay exceeds an amount equivalent
to thirty times the minimum wage. See 29 CFR 870.10.
(c) When a debtor's pay is subject to withholding orders with
priority the following shall apply:
(1) Unless otherwise provided by Federal law, withholding orders
issued under this subpart shall be paid in the amounts set forth under
paragraph (b) of this section and shall have priority over other
withholding orders which are served later in time. However, withholding
orders for family support shall have priority over withholding orders
issued under this subpart.
(2) If amounts are being withheld from a debtor's pay pursuant to a
withholding order served on an employer before a withholding order
issued pursuant to this subpart, or if a withholding order for family
support is served on an employer at any time, the amounts withheld
pursuant to the withholding order issued under this subpart shall be
the lesser of:
(i) The amount calculated under paragraph (b) of this section, or
(ii) An amount equal to 25 percent of the debtor's disposable pay
less the amount(s) withheld under the withholding order(s) with
priority.
(3) If a debtor owes more than one debt to the Department, the
Department may issue multiple withholding orders provided that the
total amount garnished from the debtor's pay for such orders does not
exceed the amount set forth in paragraph (b) of this section.
(d) An amount greater than that set forth in paragraphs (b) and (c)
of this
[[Page 60802]]
section may be withheld upon the written consent of the debtor.
(e) The employer shall promptly pay to the Department all amounts
withheld in accordance with the withholding order issued pursuant to
this subpart.
(f) An employer shall not be required to vary its normal pay and
disbursement cycles in order to comply with the withholding order.
(g) Any assignment or allotment by an employee of his earnings
shall be void to the extent it interferes with or prohibits execution
of the withholding order issued under this subpart, except for any
assignment or allotment made pursuant to a family support judgment or
earlier withholding order.
(h) The employer shall withhold the appropriate amount from the
debtor's wages for each pay period until the employer receives
notification from the Department to discontinue wage withholding. The
garnishment order shall indicate a reasonable period of time within
which the employer is required to commence wage withholding.
Sec. 20.210 Exclusions from garnishment.
The Department may not garnish the wages of a debtor who it knows
has been involuntarily separated from employment until the debtor has
been reemployed continuously for at least 12 months. The debtor has the
burden of informing the Department (or any other federal agency
exercising the Department's authority under this subpart) of the
circumstances surrounding an involuntary separation from employment.
Sec. 20.211 Financial hardship.
(a) A debtor whose wages are subject to a wage withholding order
under this subpart, may, at any time, request a review by the
Department of the amount garnished, based on materially changed
circumstances such as disability, divorce, or catastrophic illness
which result in financial hardship.
(b) A debtor requesting a review under paragraph (a) of this
section shall submit the basis for claiming that the current amount of
garnishment results in a financial hardship to the debtor, along with
supporting documentation. The Department shall consider any information
submitted in accordance with procedures and standards established by
the agency.
(c) If a financial hardship is found, the Department shall
downwardly and temporarily adjust the amount garnished to reflect the
debtor's financial condition. The Department will notify the employer
of any adjustments to the amounts to be withheld.
Sec. 20.212 Ending garnishment.
(a) Once the Department has fully recovered the amounts owed by the
debtor, including interest, penalties, and administrative costs
consistent with the FCCS, the Department shall send the debtor's
employer notification to discontinue wage withholding.
(b) At least annually, the Department shall review its debtors'
accounts to ensure that garnishment has been terminated for accounts
that have been paid in full.
Sec. 20.213 Actions prohibited by employer.
An employer may not discharge, refuse to employ, or take
disciplinary action against the debtor due to the issuance of a
withholding order under this subpart.
Sec. 20.214 Refunds.
(a) If a hearing official, at a hearing held pursuant to Sec.
20.206, determines that a debt is not legally due and owing to the
Department, the Department shall promptly refund any amount collected
by means of administrative wage garnishment.
(b) Unless required by Federal law or contract, refunds under this
section shall not bear interest.
Sec. 20.215 Right of action.
The Department may sue any employer for any amount that the
employer fails to withhold from wages owed and payable to an employee
in accordance with Sec. Sec. 20.207 and 20.209. However, a suit may
not be filed before the termination of the collection action involving
a particular debtor, unless earlier filing is necessary to avoid
expiration of any applicable statute of limitations period. For
purposes of this subpart, ``termination of the collection action''
occurs when the agency has terminated collection action in accordance
with the FCCS or other applicable standards. In any event, termination
of the collection action will have been deemed to occur if the agency
has not received any payments to satisfy the debt from the particular
debtor whose wages were subject to garnishment, in whole or in part,
for a period of 1 year.
[FR Doc. 2015-25427 Filed 10-7-15; 8:45 am]
BILLING CODE 4510-7C-P