[Federal Register Volume 64, Number 103 (Friday, May 28, 1999)]
[Rules and Regulations]
[Pages 28916-28917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13342]


=======================================================================
-----------------------------------------------------------------------

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1650


Revision of Debt Collection Regulation

AGENCY: Equal Employment Opportunity Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Equal Employment Opportunity Commission (EEOC) is revising 
its regulation on debt collection to provide general debt collection 
standards and to implement the administrative wage garnishment 
provisions of the Debt Collection Improvement Act (DCIA) of 1996. This 
final rule adopts the federal claims collection standards issued 
jointly by the General Accounting Office (GAO) and the Department of 
Justice (DOJ) in 4 CFR Parts 101-105 and the regulation on 
administrative wage garnishment issued by the Department of the 
Treasury at 31 CFR 285.11.

EFFECTIVE DATE: May 28, 1999.

FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal 
Counsel, or Susan Murphy, Senior Attorney, Office of Legal Counsel, at 
(202) 663-4669 (voice), (202) 663-7026 (TDD). This final rule is also 
available in the following formats: large print, braille, electronic 
file on computer disk, and audio-tape. Copies may be obtained from the 
EEOC's Publication Center by calling 1-800-669-3362 (voice) or 1-800-
669-6820 (TDD).

SUPPLEMENTARY INFORMATION: EEOC is revising its regulation on debt 
collection found in 29 CFR Part 1650 to indicate that it follows the 
federal claims collection standards of the Department of Justice and 
the General Accounting Office at 4 CFR Parts 101-105. A statement of 
adoption by cross-reference is being added to each of the subparts of 
29 CFR Part 1650.
    EEOC is also adding a new subpart D to implement administrative 
wage garnishment provisions under section 31001(o) of the Debt 
Collection Improvement Act of 1996 (DCIA), Pub. L. 104-134, 110 Stat. 
1321-358 (April 26, 1996). Here, EEOC is adopting by cross-reference 
the administrative wage garnishment regulation issued by the Department 
of the Treasury at 31 CFR 285.11. Under the DCIA, a federal agency that 
is collecting delinquent nontax debt may administratively garnish the 
debtor's wages in accordance with regulations promulgated by the 
Secretary of the Treasury. EEOC's debt collection program does not 
necessitate procedures different from those established by the 
Department of the Treasury, and therefore the Commission is adopting 
the Treasury regulation. This new subpart will also contain the 
statement of adoption by cross-reference of the federal claims 
collection standards issued by the Department of Justice and the 
General Accounting Office.
    We are issuing a final rule rather than a notice of proposed 
rulemaking because we have determined, for good cause, that publication 
of a proposed rule and solicitation of comments are not necessary. Good 
cause also exists for waiving the 30-day delay in effectiveness as to 
these revisions. These amendments concern matters of agency practice 
and procedure. Their purpose is to incorporate without change existing 
regulations of the Departments of Justice and the Treasury and the 
General Accounting Office, which were the subject of public comment 
when promulgated by those agencies. Incorporation of the federal claims 
collection standards reflects existing requirements and longstanding 
Commission practice.

Regulatory Procedures

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (Pub. L. 96-354, 
as amended by Pub. L. 104-121), the Commission has reviewed this 
regulation, and by approving it, certifies

[[Page 28917]]

under 5 U.S.C. 605(b) that this regulation will not have a significant 
economic impact on a substantial number of small entities. The EEOC's 
debt collection activities do not affect a substantial number of small 
entities. Moreover, as found by the Department of the Treasury, wage 
garnishment requirements do not have a significant economic impact on 
small entities. Employers of delinquent debtors must certify certain 
information about the debtor, such as the debtor's employment status 
and earnings. This information is contained in the employer's payroll 
records. Therefore, it will not take a significant amount of time or 
result in a significant cost for an employer to complete the 
certification form. Even if an employer is served withholding orders on 
several employees over the course of a year, the cost imposed on the 
employer to complete the certification would not have a significant 
economic impact on that entity. Employers are not required to vary 
their normal pay cycles in order to comply with a withholding order 
issued pursuant to this rule. For these reasons, a regulatory 
flexibility analysis is not required.

Executive Order 12866

    This rule is not a significant regulatory action as defined in 
Executive Order 12866 and is therefore not subject to review by the 
Office of Management and Budget.

Paperwork Reduction Act

    This regulation contains no information collection requirements 
subject to review by the Office of Management and Budget under the 
Paperwork Reduction Act of 1980 (44 U.S.C. chapter 35).

List of Subjects in 29 CFR Part 1650

    Administrative practice and procedure, Claims, Debts, Garnishment 
of wages, Hearing and appeal procedures, Salaries, Wages.

    For the reasons stated in the preamble, 29 CFR Part 1650 is amended 
as set forth below.

PART 1650--DEBT COLLECTION

    1. The authority citation for 29 CFR Part 1650 is revised to read 
as follows:

    Authority: 5 U.S.C. 5514; 31 U.S.C. 321, 3701, 3711, 3716, 
3720A, 3720D; EO 13019, 61 FR 51763, 3 CFR 1996 Comp., p. 216; 5 CFR 
550.1101.

    2-3. Section 1650.101 is amended by adding two new sentences at the 
end of the section to read as follows:


Sec. 1650.101  Purpose.

    * * * The general standards and procedures governing the 
collection, compromise, termination, and referral to the Department of 
Justice of claims for money and property that are prescribed in the 
regulations issued jointly by the General Accounting Office and the 
Department of Justice pursuant to the Federal Claims Collection Act of 
1966 (4 CFR Parts 101-105) apply to the administrative collection 
activities of the EEOC. The Director of the Financial Management 
Division shall act on all claims arising out of the activities of the 
EEOC.
    4. Section 1650.201 is amended by adding two new sentences at the 
end of the section to read as follows:


Sec. 1650.201  Purpose.

    * * * The general standards and procedures governing the 
collection, compromise, termination, and referral to the Department of 
Justice of claims for money and property that are prescribed in the 
regulations issued jointly by the General Accounting Office and the 
Department of Justice pursuant to the Federal Claims Collection Act of 
1966 (4 CFR Parts 101-105) apply to the administrative collection 
activities of the EEOC. The Director of the Financial Management 
Division shall act on all claims arising out of the activities of the 
EEOC.
    5. Section 1650.301 is amended by adding two new sentences at the 
end of the section to read as follows:


Sec. 1650.301  Purpose.

    * * * The general standards and procedures governing the 
collection, compromise, termination, and referral to the Department of 
Justice of claims for money and property that are prescribed in the 
regulations issued jointly by the General Accounting Office and the 
Department of Justice pursuant to the Federal Claims Collection Act of 
1966 (4 CFR Part 101-105) apply to the administrative collection 
activities of the EEOC. The Director of the Financial Management 
Division shall act on all claims arising out of the activities of the 
EEOC.
    6. A new Subpart D is added to 29 CFR Part 1650 to read as follows:

Subpart D--Procedures for the Collection of Debts by Administrative 
Wage Garnishment


Sec. 1650.401  Purpose and regulatory procedures for the collection of 
debts by administrative wage garnishment.

    The Commission hereby adopts by cross-reference the administrative 
wage garnishment regulation issued by the Department of the Treasury at 
31 CFR 285.11. The general standards and procedures governing the 
collection, compromise, termination, and referral to the Department of 
Justice of claims for money and property that are prescribed in the 
regulations issued jointly by the General Accounting Office and the 
Department of Justice pursuant to the Federal Claims Collection Act of 
1966 (4 CFR Parts 101-105) apply to the administrative collection 
activities of the EEOC. The Director of the Financial Management 
Division shall act on all claims arising out of the activities of the 
EEOC.

    Dated: May 20, 1999.

    For the Commission.
Ida L. Castro,
Chairwoman.
[FR Doc. 99-13342 Filed 5-27-99; 8:45 am]
BILLING CODE 6570-01-M