PRIOR PRINTER'S NO. 1612                      PRINTER'S NO. 2984

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1391 Session of 1995


        INTRODUCED BY DEMPSEY, TRELLO, FLEAGLE, MERRY, NAILOR, WAUGH,
           PLATTS, BROWN, FARGO, GEIST, BARLEY, SAYLOR, SATHER,
           L. I. COHEN, MILLER, MICOZZIE, E. Z. TAYLOR, GODSHALL, LEH,
           SCHRODER, WOGAN, BATTISTO, HERSHEY, STABACK, SEMMEL, HALUSKA,
           BAKER, HENNESSEY, BOSCOLA, GLADECK, CHADWICK, FEESE,
           STEELMAN, RAYMOND, SERAFINI AND STRITTMATTER, APRIL 20, 1995

        AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JANUARY 30, 1996

                                     AN ACT

     1  Authorizing the attachment of wages; AND MAKING A REPEAL.         <--

     2     The General Assembly of the Commonwealth of Pennsylvania
     3  hereby enacts as follows:
     4  Section 1.  Short title.
     5     This act shall be known and may be cited as the Garnishment
     6  Authorization Act.
     7  Section 2.  Definitions.
     8     The following words and phrases when used in this act shall
     9  have the meanings given to them in this section unless the
    10  context clearly indicates otherwise:
    11     "Employee."  The term includes an employee whether he is a
    12  resident or nonresident of this Commonwealth.
    13     "Wages."  The NET monetary remuneration paid to an employee    <--
    14  for his employment.
    15  Section 3.  Nature of attachment.

     1     (a)  Attachment constitutes containing CONTINUING lien.--When  <--
     2  an attachment is levied against the wages of a judgment debtor,
     3  the attachment shall constitute a lien on all attachable wages
     4  that are payable at the time the attachment is served or which
     5  become payable until the judgment, interest and costs, as set
     6  forth in the attachment, are satisfied.
     7     (b)  Waiver.--A waiver of the limitations set forth in
     8  section 4, whether given orally or in writing, shall be void.
     9     (C)  NOTICE TO DEBTOR.--A JUDGMENT DEBTOR MUST BE GIVEN        <--
    10  ADVANCE NOTICE PRIOR TO ANY ATTACHMENT OF INCOME UNDER THIS ACT.
    11  THE NOTICE MUST SPECIFY THE PERCENTAGE OF WAGES TO BE WITHHELD,
    12  THE APPLICATION OF THE ORDER OF ATTACHMENT, HOW AND WHEN THE
    13  ORDER MAY BE CONTESTED AND THE GROUNDS UPON WHICH THE ORDER MAY
    14  BE CONTESTED. THE NOTICE MUST BE SERVED UPON THE JUDGMENT DEBTOR
    15  BY FIRST CLASS, CERTIFIED MAIL, WHICH REQUIRES A RECEIPT TO BE
    16  SIGNED BY THE ADDRESSEE. NO ATTACHMENT SHALL CONSTITUTE A LIEN
    17  OR TAKE EFFECT IN ANY MANNER UNTIL NOTICE HAS BEEN PROVIDED TO
    18  THE JUDGMENT DEBTOR UNDER THIS SUBSECTION.
    19  Section 4.  Limitations on wages subject to attachment.
    20     (a)  Amount of wages exempt.--The following are exempt from
    21  attachment:
    22         (1)  Payments for medical insurance, dental insurance, or
    23     both, deducted from an employee's wages by the employer.
    24         (2)  The greater of 30 times the Federal minimum wage or
    25     75% of the net weekly take-home pay.
    26     (b)  Calculation per pay period.--The amount subject to
    27  attachment shall be calculated per pay period.
    28  Section 5.  Duties of employer.
    29     (a)  Duty to withhold and remit.--While the attachment
    30  remains a lien, the employer who is subject to a garnishment
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     1  shall withhold the attachable wages payable to a judgment debtor
     2  and shall remit the amount withheld to the judgment creditor or
     3  his legal representative within 15 days from the close of the
     4  last pay period in each month. The employer shall be entitled to
     5  deduct from the moneys collected from each employee the costs
     6  incurred from the extra bookkeeping necessary to record such
     7  transactions, not exceeding 2% of the amount of money so
     8  collected.
     9     (b)  Order in which attachments satisfied.--If an employer is  <--
    10         (1)  THE FOLLOWING ATTACHMENTS HAVE PRIORITY IN THE ORDER  <--
    11     OF PRECEDENCE IN WHICH THEY ARE LISTED:
    12             (I)  CHILD SUPPORT UNDER 23 PA.C.S. § 4348 (RELATING
    13         TO ATTACHMENT OF INCOME).
    14             (II)  ALIMONY UNDER 23 PA.C.S. § 3703 (RELATING TO
    15         ENFORCEMENT OF ARREARAGES).
    16             (III)  ATTACHMENT BY A GOVERNMENTAL ENTITY.
    17         (2)  EXCEPT AS PROVIDED IN PARAGRAPH (1), IF AN EMPLOYER
    18     IS served with more than one attachment against the same
    19     judgment debtor, then the attachments shall be satisfied in
    20     the order in which they were served. Each prior attachment
    21     shall be satisfied before any effect is given to a subsequent
    22     attachment.
    23  Section 6.  Resignation or dismissal of employee.
    24     (a)  Lapse of attachment.--If a judgment debtor resigns or is
    25  dismissed from his employment while an attachment on his wages
    26  is wholly or partially unsatisfied, the attachment shall lapse.
    27  No further deduction may be made unless the judgment debtor is
    28  reinstated or reemployed within 90 days from the date of
    29  dismissal, IN WHICH CASE THE ATTACHMENT SHALL NOT BE DEEMED TO    <--
    30  HAVE LAPSED.
    19950H1391B2984                  - 3 -

     1     (b)  Prohibition.--An employer may not discharge his employee
     2  because the employee's wages are subjected to attachment. IN      <--
     3  CASE OF A VIOLATION OF THIS SUBSECTION, THE EMPLOYER OR THE
     4  EMPLOYER'S OFFICER OR EMPLOYEE MAY BE ADJUDGED IN CONTEMPT OF
     5  COURT AND SUBJECT TO A FINE LEVIED BY THE COURT OF UP TO $500.
     6  AN EMPLOYEE AGGRIEVED BY A VIOLATION OF THIS SUBSECTION MAY
     7  BRING AN ACTION FOR DAMAGES AND REASONABLE ATTORNEY FEES IN A
     8  COURT OF COMPETENT JURISDICTION.
     9  Section 7.  Duties of judgment creditor.
    10     (a)  Statement of payments credited during month.--Within 15
    11  days after the end of each month, the judgment creditor shall
    12  furnish the employer, judgment debtor and clerk of the court a
    13  written statement showing all payments that were credited to the
    14  account of the judgment debtor during that month. However, this
    15  subsection shall not apply if no payments were received by the
    16  judgment creditor during that month.
    17     (b)  Notice of satisfaction of attachment.--The judgment
    18  creditor shall, within 15 SEVEN BUSINESS days after the           <--
    19  satisfaction of THE TOTAL MONETARY AMOUNT OF the judgment,        <--
    20  INCLUDING interest and costs, notify in writing the employer and  <--
    21  the clerk of the court of the satisfaction. THE JUDGMENT          <--
    22  CREDITOR SHALL, WITHIN 30 DAYS OF SATISFACTION OF THE MONETARY
    23  AMOUNT OF THE DEBT, TAKE THE NECESSARY LEGAL STEPS TO NOTIFY THE
    24  CLERK OF THE COURT OF THE JUDGMENT'S SATISFACTION.
    25     (c)  Application of payments received by judgment creditor.--
    26  All payments received by a judgment creditor shall be credited
    27  first against THE RECORD COSTS OF THE JUDGMENT AND ATTACHMENT     <--
    28  ORDER; SECOND AGAINST the accrued interest on the unpaid balance
    29  of the judgment, if any, second upon; THIRD AGAINST the           <--
    30  principal amount of the judgment, and third upon; AND FOURTH      <--
    19950H1391B2984                  - 4 -

     1  AGAINST those attorney fees and costs actually assessed in the
     2  cause CASE.                                                       <--
     3     (d)  Failure of judgment creditor to comply with section.--If
     4  the judgment creditor fails to comply with the obligations
     5  imposed by this section, the court may set aside the attachment
     6  and order the judgment creditor to pay reasonable attorney fees
     7  and costs of the party seeking to set aside the attachment.
     8  Section 8.  Waiver of sovereign immunity.
     9     Wages due from or payable by the Commonwealth or any
    10  municipal government or authority are subject to this act as if
    11  any of these entities were a private person.
    12  SECTION 9.  REPEAL.                                               <--
    13     THE PROVISIONS OF 42 PA.C.S. § 8127 ARE REPEALED.
    14  SECTION 10.  APPLICABILITY.
    15     THIS ACT SHALL NOT APPLY TO A JUDGMENT ARISING FROM A
    16  CONFESSION OF JUDGMENT FOR MONEY PURSUANT TO AN INSTRUMENT
    17  AUTHORIZING THE CONFESSION.
    18  Section 9 11.  Effective date.                                    <--
    19     This act shall take effect in 90 days.








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