_______________________________________________

 

            ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1687

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By House Committee on Appropriations (originally sponsored by Representatives Sheahan, Delvin, Sheldon, McMorris, L. Thomas, Mielke, Grant, Morris, Benson, D. Schmidt, Alexander, D. Sommers, Johnson, Thompson, Talcott and Boldt)

 

Read first time 03/10/97.

  Reducing the impact of wage garnishments on employers.  


    AN ACT Relating to wage garnishment; amending RCW 6.27.100, 6.27.110, 6.27.190, 6.27.200, 6.27.350, 6.27.360, 26.18.100, 26.18.110, 26.23.060, 26.23.090, 74.20A.080, 74.20A.100, and 74.20A.240; adding new sections to chapter 6.27 RCW; and creating a new section.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    NEW SECTION.  Sec. 1.  The legislature recognizes that the employer has no responsibility in the situation leading to wage garnishment of the employee and that the employer is in fact helping the state and other businesses when the wages of employees are garnished.  It is not the intent of the legislature to interfere in the employer/employee relationship.  The legislature also recognizes that wage garnishment orders create an administrative burden for employers and that the state should do everything in its power to reduce or offset this burden.

 

    Sec. 2.  RCW 6.27.100 and 1988 c 231 s 25 are each amended to read as follows:

    The writ shall be substantially in the following form:  PROVIDED, That if the writ is issued under a court order or judgment for child support, the following statement shall appear conspicuously in the caption:  "This garnishment is based on a judgment or court order for child support":  AND PROVIDED FURTHER, That if the garnishment is for a continuing lien, the form shall be modified as provided in RCW 6.27.340:  AND PROVIDED FURTHER, That if the writ is not directed to an employer for the purpose of garnishing a defendant's earnings, the paragraph relating to the earnings exemption may be omitted:

 

                      "IN THE SUPERIOR COURT

               OF THE STATE OF WASHINGTON IN AND FOR

                     THE COUNTY OF . . . . . .

 

. . . . . . . . . . . . . . . . .,

           Plaintiff,                        No. . . . .

              vs.

. . . . . . . . . . . . . . . . .,

                                              WRIT OF

           Defendant                        GARNISHMENT

. . . . . . . . . . . . . . . . .,

           Garnishee ((Defendant))

 

THE STATE OF WASHINGTON TO: .....................................

                                                         Garnishee    

                                                     ((Defendant))  

 

AND TO: .........................................................

                             Defendant

 

    The above-named plaintiff has applied for a writ of garnishment against you, claiming that the above-named defendant is indebted to plaintiff and that the amount to be held to satisfy that indebtedness is $ . . . . . ., consisting of:

 

Balance on Judgment or Amount of Claim                 $ . . . .

Interest under Judgment from . . . . to . . . .        $ . . . .

Taxable Costs and Attorneys' Fees                      $ . . . .

    Estimated Garnishment Costs:

    Filing Fee                                         $ . . . .

    Service and Affidavit Fees                         $ . . . .

    Postage and Costs of Certified Mail                $ . . . .

    ((Answer Fee or Fees                             $ . . . .))

    Garnishment Attorney Fee                           $ . . . .

 

    YOU MAY DEDUCT A PROCESSING FEE FROM THE REMAINDER OF THE EMPLOYEE'S EARNINGS AFTER WITHHOLDING UNDER THE GARNISHMENT ORDER.  THE PROCESSING FEE MAY NOT EXCEED TWENTY DOLLARS FOR THE FIRST DISBURSEMENT MADE.  IF THIS IS A WRIT FOR A CONTINUING LIEN ON EARNINGS, YOU MAY DEDUCT A PROCESSING FEE OF TWENTY DOLLARS AT THE TIME YOU REMIT THE FIRST DISBURSEMENT AND TEN DOLLARS AT THE TIME YOU SUBMIT THE SECOND ANSWER.

 

    YOU ARE HEREBY COMMANDED, unless otherwise directed by the court or by this writ, not to pay any debt, whether earnings subject to this garnishment or any other debt, owed to the defendant at the time this writ was served and not to deliver, sell, or transfer, or recognize any sale or transfer of, any personal property or effects of the defendant in your possession or control at the time when this writ was served.  Any such payment, delivery, sale, or transfer is void to the extent necessary to satisfy the plaintiff's claim and costs for this writ with interest.

    YOU ARE FURTHER COMMANDED to answer this writ by filling in the attached form according to the instructions in this writ and in the answer forms and, within twenty days after the service of the writ upon you, to mail or deliver the original of such answer to the court, one copy to the plaintiff or the plaintiff's attorney, and one copy to the defendant, in the envelopes provided.

    If, at the time this writ was served, you owed the defendant any earnings (that is, wages, salary, commission, bonus, or other compensation for personal services or any periodic payments pursuant to a pension or retirement program), the defendant is entitled to receive amounts that are exempt from garnishment under federal and state law.  You must pay the exempt amounts to the defendant on the day you would customarily pay the compensation or other periodic payment.  As more fully explained in the answer, the basic exempt amount is the greater of seventy-five percent of disposable earnings or a minimum amount determined by reference to the employee's pay period, to be calculated as provided in the answer.  However, if this writ carries a statement in the heading that "This garnishment is based on a judgment or court order for child support," the basic exempt amount is forty percent of disposable earnings.

    If you owe the defendant a debt payable in money in excess of the amount set forth in the first paragraph of this writ, hold only the amount set forth in the first paragraph and any processing fee if one is charged and release all additional funds or property to defendant.

 

    YOUR FAILURE TO ANSWER THIS WRIT AS COMMANDED WILL RESULT IN A JUDGMENT BEING ENTERED AGAINST YOU FOR THE FULL AMOUNT OF THE PLAINTIFF'S CLAIM AGAINST THE DEFENDANT WITH ACCRUING INTERESTS AND COSTS WHETHER OR NOT YOU OWE ANYTHING TO THE DEFENDANT.

 

    Witness, the Honorable . . . . . . . ., Judge of the Superior Court, and the seal thereof, this . . . . day of . . . . . ., 19. . .

 

[Seal]

 

.............................      ...............................

Attorney for                       Clerk of

Plaintiff (or                      Superior

Plaintiff,                         Court

if no attorney)

.............................      ...............................

Address                            By

                                   ...............................

                                   Address"

 

    NEW SECTION.  Sec. 3.  The garnishee may deduct a processing fee from the remainder of the obligor's earnings after withholding the required amount under the garnishment order.  The processing fee may not exceed twenty dollars for the first disbursement.  If the garnishment is a continuing lien on earnings, the garnishee may deduct a processing fee of twenty dollars for the first disbursement and ten dollars at the time the garnishee submits the second answer.

 

    Sec. 4.  RCW 6.27.110 and 1988 c 231 s 26 are each amended to read as follows:

    (1) Service of the writ of garnishment on the garnishee is invalid unless the writ is served together with:  (a) Four answer forms as prescribed in RCW 6.27.190; (b) three stamped envelopes addressed respectively to the clerk of the court issuing the writ, the attorney for the plaintiff (or to the plaintiff if the plaintiff has no attorney), and the defendant((; and (c) cash or a check made payable to the garnishee in the amount of ten dollars)).

    (2) Except as provided in RCW 6.27.080 for service on a bank, savings and loan association, or credit union, the writ of garnishment shall be mailed to the garnishee by certified mail, return receipt requested, addressed in the same manner as a summons in a civil action, and will be binding upon the garnishee on the day set forth on the return receipt.  In the alternative, the writ shall be served by the sheriff of the county in which the garnishee lives or has its place of business or by any person qualified to serve process in the same manner as a summons in a civil action is served.

    (3) If a writ of garnishment is served by a sheriff, the sheriff shall file with the clerk of the court that issued the writ a signed return showing the time, place, and manner of service and that the writ was accompanied by answer forms, addressed envelopes, and ((cash or a check as required by this section, and)) noting thereon fees for making the service.  If service is made by any person other than a sheriff, such person shall file an affidavit including the same information and showing qualifications to make such service.  If a writ of garnishment is served by mail, the person making the mailing shall file an affidavit showing the time, place, and manner of mailing and that the writ was accompanied by answer forms((,)) and addressed envelopes, ((and cash or a check as required by this section)) and shall attach the return receipt to the affidavit.

 

    Sec. 5.  RCW 6.27.190 and 1988 c 231 s 30 are each amended to read as follows:

    The answer of the garnishee shall be signed by the garnishee or attorney or if the garnishee is a corporation, by an officer, attorney or duly authorized agent of the garnishee, under penalty of perjury, and the original delivered, either personally or by mail, to the clerk of the court that issued the writ, one copy to the plaintiff or the plaintiff's attorney, and one copy to the defendant.  The answer shall be made on a form substantially as appears in this section, served on the garnishee with the writ, with minimum exemption amounts for the different pay periods filled in by the plaintiff before service of the answer forms:  PROVIDED, That, if the garnishment is for a continuing lien, the answer forms shall be as prescribed in RCW 6.27.340 and 6.27.350:  AND PROVIDED FURTHER, That if the writ is not directed to an employer for the purpose of garnishing the defendant's wages, paragraphs relating to the earnings exemptions may be omitted.

 

                       IN THE SUPERIOR COURT

               OF THE STATE OF WASHINGTON IN AND FOR

                     THE COUNTY OF . . . . . .

 

.............................               NO. . . . . .

           Plaintiff

              vs.

                                              ANSWER

.............................

                                            TO WRIT OF

           Defendant

                                            GARNISHMENT

.............................

           Garnishee Defendant

 

    At the time of service of the writ of garnishment on the garnishee there was due and owing from the garnishee to the above-named defendant $ . . . . . .  (On the reverse side of this answer form, or on an attached page, give an explanation of the dollar amount stated, or give reasons why there is uncertainty about your answer.)

    If the above amount or any part of it is for personal earnings (that is, compensation payable for personal services, whether called wages, salary, commission, bonus, or otherwise, and including periodic payments pursuant to a pension or retirement program):  Garnishee has deducted from this amount $ . . . . . which is the exemption to which the defendant is entitled, leaving $ . . . . . . that garnishee holds under the writ.  The exempt  amount is calculated as follows:

    Total compensation due defendant           $ . . . . . .

    LESS deductions for social security and withholding taxes and any other deduction required by law (list separately and identify)                               $ . . . . . .

    Disposable earnings                        $ . . . . . .

 

    If the title of this writ indicates that this is a garnishment under a child support judgment, enter forty percent of disposable earnings:  $ . . . . . .  This amount is exempt and must be paid to the defendant at the regular pay time after deducting any processing fee you may charge.

    If this is not a garnishment for child support, enter seventy-five percent of disposable earnings:  $ . . . . . . .  From the listing in the following paragraph, choose the amount for the relevant pay period and enter that amount:  $ . . . . . .  (If amounts for more than one pay period are due, multiply the preceding amount by the number of pay periods and/or fraction of pay period for which amounts are due and enter that amount:  $ . . . . . .)  The greater of the amounts entered in this paragraph is the exempt amount and must be paid to the defendant at the regular pay time after deducting any processing fee you may charge.

    Minimum exempt amounts for different pay periods:  Weekly $ . . . . . .; Biweekly $ . . . . . .; Semimonthly $ . . . . . .; Monthly $ . . . . . .

    List all of the personal property or effects of defendant in the garnishee's possession or control when the writ was served.  (Use the reverse side of this answer form or attach a schedule if necessary.)

    An attorney may answer for the garnishee.

    Under penalty of perjury, I affirm that I have examined this answer, including accompanying schedules, and to the best of my knowledge and belief it is true, correct, and complete.

 

.............................      ...............................

Signature of

                                   Date

Garnishee Defendant

 

.......... ..................      ...............................

Signature of person

                                   Connection with

answering for

                                   garnishee

garnishee

 

.............................

.............................

Address of Garnishee

 

    Sec. 6.  RCW 6.27.200 and 1988 c 231 s 31 are each amended to read as follows:

    If the garnishee fails to answer the writ within the time prescribed in the writ, after the time to answer the writ has expired and after required returns or affidavits have been filed, showing service on the garnishee and service on or mailing to the defendant, it shall be lawful for the court to render judgment by default against such garnishee, ((in accordance with rules relating to entry of default judgments)) after providing a notice to the garnishee by personal service or first class mail deposited in the mail at least ten calendar days prior to entry of the judgment, for the full amount claimed by the plaintiff against the defendant, or in case the plaintiff has a judgment against the defendant, for the full amount of the plaintiff's unpaid judgment against the defendant with all accruing interest and costs as prescribed in RCW 6.27.090:  PROVIDED, That upon motion by the garnishee at any time within seven days following service on, or mailing to, the garnishee ((defendant)) of a copy of a writ of execution or a writ of garnishment under such judgment, the judgment against the garnishee shall be reduced to the amount of any nonexempt funds or property which was actually in the possession of the garnishee at the time the writ was served, plus the cumulative amount of the nonexempt earnings subject to the lien provided for in RCW 6.27.350, or the sum of one hundred dollars, whichever is more, but in no event to exceed the full amount claimed by the plaintiff or the amount of the unpaid judgment against the principal defendant plus all accruing interest and costs and attorney's fees as prescribed in RCW 6.27.090, and in addition the plaintiff shall be entitled to a reasonable attorney's fee for the plaintiff's response to the garnishee's motion to reduce said judgment against the garnishee under this proviso and the court may allow additional attorney's fees for other actions taken because of the garnishee's failure to answer.

 

    Sec. 7.  RCW 6.27.350 and 1988 c 231 s 35 are each amended to read as follows:

    (1) Where the garnishee's answer to a garnishment for a continuing lien reflects that the defendant is employed by the garnishee, the judgment or balance due thereon as reflected on the writ of garnishment shall become a lien on earnings due at the time of the effective date of the writ, as defined in this subsection, to the extent that they are not exempt from garnishment, and such lien shall continue as to subsequent nonexempt earnings until the total subject to the lien equals the amount stated on the writ of garnishment or until the expiration of the employer's payroll period ending on or before sixty days after the effective date of the writ, whichever occurs first, except that such lien on subsequent earnings shall terminate sooner if the employment relationship is terminated or if the underlying judgment is vacated, modified, or satisfied in full or if the writ is dismissed.  The "effective date" of a writ is the date of service of the writ if there is no previously served writ; otherwise, it is the date of termination of a previously served writ or writs.

    (2) At the time of the expected termination of the lien, the plaintiff shall mail to the garnishee ((cash or a check made payable to the garnishee in the amount of ten dollars,)) three additional stamped envelopes addressed as provided in RCW 6.27.110, and four additional copies of the answer form prescribed in RCW 6.27.190, (a) with a statement in substantially the following form added as the first paragraph:  "ANSWER THE SECOND PART OF THIS FORM WITH RESPECT TO THE TOTAL AMOUNT OF EARNINGS WITHHELD UNDER THIS GARNISHMENT, INCLUDING THE AMOUNT, IF ANY, STATED IN YOUR FIRST ANSWER, AND WITHIN TWENTY DAYS AFTER YOU RECEIVE THESE FORMS, MAIL OR DELIVER THEM AS DIRECTED IN THE WRIT" and (b) with the following lines substituted for the first sentence of the form prescribed in RCW 6.27.190:

Amount due and owing stated in first answer             $. . . . .

Amount accrued since first answer                       $. . . . .

    (3) Within twenty days of receipt of the second answer form the garnishee shall file a second answer, in the form as provided in subsection (2) of this section, stating the total amount held subject to the garnishment.

 

    Sec. 8.  RCW 6.27.360 and 1989 c 360 s 20 are each amended to read as follows:

    (1) Except as provided in subsection (2) of this section, a lien obtained under RCW 6.27.350 shall have priority over any subsequent garnishment lien or wage assignment except that service of a writ shall not be effective to create a continuing lien with such priority if a writ in the same case is pending at the time of the service of the new writ.

    (2) A lien obtained under RCW 6.27.350 shall not have priority over a notice of payroll deduction issued under RCW 26.23.060 or a wage assignment or other garnishment for child support issued under chapters 26.18 and 74.20A RCW.  Should nonexempt wages remain after deduction of all amounts owing under a notice of payroll deduction, wage assignment, or garnishment for child support, the garnishee shall withhold the remaining nonexempt wages under the lien obtained under RCW 6.27.350.

 

    NEW SECTION.  Sec. 9.  (1) Whenever the federal government is named as a garnishee defendant, the clerk of the court shall, upon submitting a notice in the appropriate form by the plaintiff, issue a notice which directs the garnishee defendant to disburse any nonexempt earnings to the court in accordance with the garnishee defendant's normal pay and disbursement cycle.

    (2) Funds received by the clerk from a garnishee defendant may be deposited into the registry of the court or, in the case of negotiable instruments, may be retained in the court file.  Upon presentation of an order directing the clerk to disburse the funds received, the clerk shall pay or endorse the funds over to the party entitled to receive the funds.  Except for good cause shown, the funds shall not be paid or endorsed to the plaintiff prior to the expiration of any minimum statutory period allowed to the defendant for filing an exemption claim.

    (3) The plaintiff shall, in the same manner permitted for service of the writ of garnishment, provide to the garnishee defendant a copy of the notice issued by the clerk and an envelope addressed to the court, and shall supply to the garnished party a copy of the notice.

    (4) Any answer or processing fees charged by the garnishee defendant to the plaintiff under federal law shall be a recoverable cost under RCW 6.27.090.

    (5) The notice to the federal government garnishee shall be in substantially the following form:

 

        IN THE . . . . . . COURT OF THE STATE OF WASHINGTON

                   IN AND FOR . . . . . . COUNTY

 

............................. ,         NO. . . . . .

           Plaintiff,                   NOTICE TO FEDERAL

              vs.                       GOVERNMENT GARNISHEE DEFENDANT

 

............................. ,

           Defendant,

 

............................. ,

           Garnishee Defendant.

 

TO:  THE GOVERNMENT OF THE UNITED STATES AND ANY DEPARTMENT, AGENCY, OR DIVISION THEREOF

 

You have been named as the garnishee defendant in the above-entitled cause.  A Writ of Garnishment accompanies this Notice.  The Writ of Garnishment directs you to hold the nonexempt earnings of the named defendant, but does not instruct you to disburse the funds you hold.

 

BY THIS NOTICE THE COURT DIRECTS YOU TO WITHHOLD ALL NONEXEMPT EARNINGS AND DISBURSE THEM IN ACCORDANCE WITH YOUR NORMAL PAY AND DISBURSEMENT CYCLE, TO THE FOLLOWING:

 

           . . . . . . County . . . . . . Court Clerk

           Cause No. . . . . . .

           ..........................................

           ......... (Address)

 

PLEASE REFERENCE THE DEFENDANT EMPLOYEE'S NAME AND THE ABOVE CAUSE NUMBER ON ALL DISBURSEMENTS.

 

The enclosed Writ also directs you to respond to the Writ within twenty (20) days, but you are allowed thirty (30) days to respond under federal law.

 

DATED this . . . day of . . . . . ., 19. . .

 

                                       .......................

                                       Clerk of the Court

 

    Sec. 10.  RCW 26.18.100 and 1994 c 230 s 4 are each amended to read as follows:

    The wage assignment order shall be substantially in the following form:

 

                   IN THE SUPERIOR COURT OF THE

                STATE OF WASHINGTON IN AND FOR THE

                    COUNTY OF . . . . . . . . .

 

................... ,

... Obligee........               No. . . . .

         vs.

................... ,         WAGE ASSIGNMENT

... Obligor........               ORDER

................... ,

    Employer

 

THE STATE OF WASHINGTON TO:......................................

                                       Employer

 

AND TO:..........................................................

                               Obligor

 

    The above-named obligee claims that the above-named obligor is subject to a support order requiring immediate income withholding or is more than fifteen days past due in either child support or spousal maintenance payments, or both, in an amount equal to or greater than the child support or spousal maintenance payable for one month.  The amount of the accrued child support or spousal maintenance debt as of this date is . . . . . . dollars, the amount of arrearage payments specified in the support or spousal maintenance order (if applicable) is . . . . . . dollars per . . . . . ., and the amount of the current and continuing support or spousal maintenance obligation under the order is . . . . . . dollars per . . . . . .

    You are hereby commanded to answer this order by filling in the attached form according to the instructions, and you must mail or deliver the original of the answer to the court, one copy to the Washington state support registry, one copy to the obligee or obligee's attorney, and one copy to the obligor within twenty days after service of this wage assignment order upon you.

    If you possess any earnings or other remuneration for employment due and owing to the obligor, then you shall do as follows:

    (1) Withhold from the obligor's earnings or remuneration each month, or from each regular earnings disbursement, the lesser of:

    (a) The sum of the accrued support or spousal maintenance debt and the current support or spousal maintenance obligation;

    (b) The sum of the specified arrearage payment amount and the current support or spousal maintenance obligation; or

    (c) Fifty percent of the disposable earnings or remuneration of the obligor.

    (2) The total amount withheld above is subject to the wage assignment order, and all other sums may be disbursed to the obligor.

    (3) Upon receipt of this wage assignment order you shall make immediate deductions from the obligor's earnings or remuneration and remit to the Washington state support registry or other address specified below the proper amounts at each regular pay interval.

    You shall continue to withhold the ordered amounts from nonexempt earnings or remuneration of the obligor until notified by:

    (a) The court that the wage assignment has been modified or terminated; or

    (b) The addressee specified in the wage assignment order under this section that the accrued child support or spousal maintenance debt has been paid.

    You shall promptly notify the court and the addressee specified in the wage assignment order under this section if and when the employee is no longer employed by you, or if the obligor no longer receives earnings or remuneration from you.  If you no longer employ the employee, the wage assignment order shall remain in effect ((for one year after the employee has left your employment or)) until you are no longer in possession of any earnings or remuneration owed to the employee((, whichever is later.  You shall continue to hold the wage assignment order during that period.  If the employee returns to your employment during the one-year period you shall immediately begin to withhold the employee's earnings according to the terms of the wage assignment order.  If the employee has not returned to your employment within one year, the wage assignment will cease to have effect at the expiration of the one-year period, unless you still owe the employee earnings or other remuneration)).

    You shall deliver the withheld earnings or remuneration to the Washington state support registry or other address stated below at each regular pay interval.

    You shall deliver a copy of this order to the obligor as soon as is reasonably possible.  This wage assignment order has priority over any other wage assignment or garnishment, except for another wage assignment or garnishment for child support or spousal maintenance, or order to withhold or deliver under chapter 74.20A RCW.

 

WHETHER OR NOT YOU OWE ANYTHING TO THE OBLIGOR, YOUR FAILURE TO ANSWER AS REQUIRED MAY MAKE YOU LIABLE FOR ((OBLIGOR'S CLAIMED SUPPORT OR SPOUSAL MAINTENANCE DEBT TO THE OBLIGEE)) THE AMOUNT OF SUPPORT MONEYS THAT SHOULD HAVE BEEN WITHHELD FROM THE OBLIGOR'S EARNINGS OR SUBJECT TO CONTEMPT OF COURT.

 

    NOTICE TO OBLIGOR:  YOU HAVE A RIGHT TO REQUEST A HEARING IN THE SUPERIOR COURT THAT ISSUED THIS WAGE ASSIGNMENT ORDER, TO REQUEST THAT THE COURT QUASH, MODIFY, OR TERMINATE THE WAGE ASSIGNMENT ORDER.

 

    DATED THIS . . . . day of . . . ., 19. . .

 

.............................      ...............................

Obligee,                                  Judge/Court Commissioner

or obligee's attorney

Send withheld payments to:         ...............................

                                   ...............................

                                   ...............................

                                   ...............................

 

    Sec. 11.  RCW 26.18.110 and 1994 c 230 s 5 are each amended to read as follows:

    (1) An employer upon whom service of a wage assignment order has been made shall answer the order by sworn affidavit within twenty days after the date of service.  The answer shall state whether the obligor is employed by or receives earnings or other remuneration from the employer, whether the employer will honor the wage assignment order, and whether there are either multiple child support or spousal maintenance attachments, or both, against the obligor.

    (2) If the employer possesses any earnings or remuneration due and owing to the obligor, the earnings subject to the wage assignment order shall be withheld immediately upon receipt of the wage assignment order.  The withheld earnings shall be delivered to the Washington state support registry or, if the wage assignment order is to satisfy a duty of spousal maintenance, to the addressee specified in the assignment at each regular pay interval.

    (3) The employer shall continue to withhold the ordered amounts from nonexempt earnings or remuneration of the obligor until notified by:

    (a) The court that the wage assignment has been modified or terminated; or

    (b) The Washington state support registry or obligee that the accrued child support or spousal maintenance debt has been paid, provided the wage assignment order contains the language set forth under RCW 26.18.100(3)(b).  The employer shall promptly notify the addressee specified in the assignment when the employee is no longer employed.  If the employer no longer employs the employee, the wage assignment order shall remain in effect ((for one year after the employee has left the employment or)) until the employer ((has been in possession of)) no longer possesses any earnings or remuneration owed to the employee((, whichever is later.  The employer shall continue to hold the wage assignment order during that period.  If the employee returns to the employer's employment during the one-year period the employer shall immediately begin to withhold the employee's earnings or remuneration according to the terms of the wage assignment order.  If the employee has not returned within one year, the wage assignment shall cease to have effect at the expiration of the one-year period, unless the employer continues to owe remuneration for employment to the obligor)).

    (4) The employer may deduct a processing fee from the remainder of the employee's earnings after withholding under the wage assignment order, even if the remainder is exempt under RCW 26.18.090.  The processing fee may not exceed (a) ((ten)) fifteen dollars for the first disbursement made by the employer to the Washington state support registry; and (b) one dollar for each subsequent disbursement to the clerk.

    (5) An order for wage assignment for support for a dependent child entered under this chapter shall have priority over any other wage assignment or garnishment, except for another wage assignment or garnishment for child support, or order to withhold and deliver under chapter 74.20A RCW.  An order for wage assignment for spousal maintenance entered under this chapter shall have priority over any other wage assignment or garnishment, except for a wage assignment, garnishment, or order to withhold and deliver under chapter 74.20A RCW for support of a dependent child, and except for another wage assignment or garnishment for spousal maintenance.

    (6) An employer who fails to withhold earnings as required by a wage assignment issued under this chapter may be held liable to the obligee for ((one hundred percent of the support or spousal maintenance debt, or)) the amount of support or spousal maintenance moneys that should have been withheld from the employee's earnings ((whichever is the lesser amount)), if the employer:

    (a) Fails or refuses, after being served with a wage assignment order, to deduct and promptly remit from the unpaid earnings the amounts of money required in the order;

    (b) Fails or refuses to submit an answer to the notice of wage assignment after being served; or

    (c) Is unwilling to comply with the other requirements of this section.

    Liability may be established in superior court.  Awards in superior court shall include costs, interest under RCW 19.52.020 and 4.56.110, and reasonable attorneys' fees.

    (7) No employer who complies with a wage assignment issued under this chapter may be liable to the employee for wrongful withholding.

    (8) No employer may discharge, discipline, or refuse to hire an employee because of the entry or service of a wage assignment issued and executed under this chapter.  If an employer discharges, disciplines, or refuses to hire an employee in violation of this section, the employee or person shall have a cause of action against the employer.  The employer shall be liable for double the amount of damages suffered as a result of the violation and for costs and reasonable attorneys' fees, and shall be subject to a civil penalty of not more than two thousand five hundred dollars for each violation.  The employer may also be ordered to hire, rehire, or reinstate the aggrieved individual.

    (9) For wage assignments payable to the Washington state support registry, an employer may combine amounts withheld from various employees into a single payment to the Washington state support registry, if the payment includes a listing of the amounts attributable to each employee and other information as required by the registry.

    (10) An employer shall deliver a copy of the wage assignment order to the obligor as soon as is reasonably possible.

 

    Sec. 12.  RCW 26.23.060 and 1994 c 230 s 10 are each amended to read as follows:

    (1) The office of support enforcement may issue a notice of payroll deduction:

    (a) As authorized by a support order that contains the income withholding notice provisions in RCW 26.23.050 or a substantially similar notice; or

    (b) After service of a notice containing an income withholding provision under this chapter or chapter 74.20A RCW.

    (2) The office of support enforcement shall serve a notice of payroll deduction upon a responsible parent's employer or upon the employment security department for the state in possession of or owing any benefits from the unemployment compensation fund to the responsible parent pursuant to Title 50 RCW by personal service or by any form of mail requiring a return receipt.

    (3) Service of a notice of payroll deduction upon an employer or employment security department requires the employer or employment security department to immediately make a mandatory payroll deduction from the responsible parent's unpaid disposable earnings or unemployment compensation benefits.  The employer or employment security department shall thereafter deduct each pay period the amount stated in the notice divided by the number of pay periods per month.  The payroll deduction each pay period shall not exceed fifty percent of the responsible parent's disposable earnings.

    (4) A notice of payroll deduction for support shall have priority over any wage assignment, garnishment, attachment, or other legal process.

    (5) The notice of payroll deduction shall be in writing and include:

    (a) The name and social security number of the responsible parent;

    (b) The amount to be deducted from the responsible parent's disposable earnings each month, or alternate amounts and frequencies as may be necessary to facilitate processing of the payroll deduction;

    (c) A statement that the total amount withheld shall not exceed fifty percent of the responsible parent's disposable earnings; and

    (d) The address to which the payments are to be mailed or delivered.

    (6) An informational copy of the notice of payroll deduction shall be mailed to the last known address of the responsible parent by regular mail.

    (7) An employer or employment security department that receives a notice of payroll deduction shall make immediate deductions from the responsible parent's unpaid disposable earnings and remit proper amounts to the Washington state support registry on each date the responsible parent is due to be paid.

    (8) An employer, or the employment security department, upon whom a notice of payroll deduction is served, shall make an answer to the office of support enforcement within twenty days after the date of service.  The answer shall confirm compliance and institution of the payroll deduction or explain the circumstances if no payroll deduction is in effect.  The answer shall also state whether the responsible parent is employed by or receives earnings from the employer or receives unemployment compensation benefits from the employment security department, whether the employer or employment security department anticipates paying earnings or unemployment compensation benefits and the amount of earnings.  If the responsible parent is no longer employed, or receiving earnings from the employer, the answer shall state the present employer's name and address, if known.  If the responsible parent is no longer receiving unemployment compensation benefits from the employment security department, the answer shall state the present employer's name and address, if known.

    (9) The employer or employment security department may deduct a processing fee from the remainder of the responsible parent's earnings after withholding under the notice of payroll deduction, even if the remainder is exempt under RCW 26.18.090.  The processing fee may not exceed:  (a) ((Ten)) Fifteen dollars for the first disbursement made to the Washington state support registry; and (b) one dollar for each subsequent disbursement to the registry.

    (10) The notice of payroll deduction shall remain in effect until released by the office of support enforcement, the court enters an order terminating the notice and approving an alternate arrangement under RCW 26.23.050(2), or ((one year has expired since the employer has employed the responsible parent or has been in possession of or owing any earnings to the responsible parent)) the employer is no longer in possession of or owing any earnings to the responsible parent or the employment security department ((has been)) is no longer in possession of or owing any unemployment compensation benefits to the responsible parent.

 

    Sec. 13.  RCW 26.23.090 and 1990 c 165 s 2 are each amended to read as follows:

    (1) The employer shall be liable to the Washington state support registry for ((one hundred percent of the amount of the support debt, or)) the amount of support moneys which should have been withheld from the employee's earnings, ((whichever is the lesser amount,)) if the employer:

    (a) Fails or refuses, after being served with a notice of payroll deduction, to deduct and promptly remit from unpaid earnings the amounts of money required in the notice;

    (b) Fails or refuses to submit an answer to the notice of payroll deduction after being served; or

    (c) Is unwilling to comply with the other requirements of RCW 26.23.060.

    (2) Liability may be established in superior court or may be established pursuant to RCW 74.20A.270.  Awards in superior court and in actions pursuant to RCW 74.20A.270 shall include costs, interest under RCW 19.52.020 and 4.56.110, and reasonable attorney fees and staff costs as a part of the award.  Debts established pursuant to this section may be collected pursuant to chapter 74.20A RCW utilizing any of the remedies contained in that chapter.

 

    Sec. 14.  RCW 74.20A.080 and 1994 c 230 s 20 are each amended to read as follows:

    (1) The secretary may issue to any person, firm, corporation, association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States, an order to withhold and deliver property of any kind, including but not restricted to earnings which are or might become due, owing, or belonging to the debtor, when the secretary has reason to believe that there is in the possession of such person, firm, corporation, association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States property which is or might become due, owing, or belonging to said debtor.  Such order to withhold and deliver may be issued:

    (a) When a support payment is past due, if a responsible parent's support order:

    (i) Contains language directing the parent to make support payments to the Washington state support registry; and

    (ii) Includes a statement that other income-withholding action under this chapter may be taken without further notice to the responsible parent, as provided for in RCW 26.23.050(1);

    (b) Twenty-one days after service of a notice of support debt under RCW 74.20A.040;

    (c) Twenty-one days after service of a notice and finding of parental responsibility under RCW 74.20A.056;

    (d) Twenty-one days after service of a notice of support owed under RCW 26.23.110;

    (e) Twenty-one days after service of a notice and finding of financial responsibility under RCW 74.20A.055; or

    (f) When appropriate under RCW 74.20A.270.

    (2) The order to withhold and deliver shall:

    (a) State the amount of the support debt accrued;

    (b) State in summary the terms of RCW 74.20A.090 and 74.20A.100;

    (c) Be served in the manner prescribed for the service of a summons in a civil action or by certified mail, return receipt requested.

    (3) Any person, firm, corporation, association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States upon whom service has been made is hereby required to:

    (a) Answer said order to withhold and deliver within twenty days, exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of therein; and

    (b) Provide further and additional answers when requested by the secretary.

    (4) Any such person, firm, corporation, association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States in possession of any property which may be subject to the claim of the department of social and health services shall:

    (a)(i) Immediately withhold such property upon receipt of the order to withhold and deliver; and

    (ii) Deliver the property to the secretary as soon as the twenty-day answer period expires;

    (iii) Continue to withhold earnings payable to the debtor at each succeeding disbursement interval as provided for in RCW 74.20A.090, and deliver amounts withheld from earnings to the secretary on the date earnings are payable to the debtor;

    (iv) Inform the secretary of the date the amounts were withheld as requested under this section; or

    (b) Furnish to the secretary a good and sufficient bond, satisfactory to the secretary, conditioned upon final determination of liability.

    (5) An order to withhold and deliver served under this section shall not expire until:

    (a) Released in writing by the office of support enforcement;

    (b) Terminated by court order; or

    (c) The person or entity receiving the order to withhold and deliver does not possess property of or owe money to the debtor ((for any period of twelve consecutive months following the date of service of the order to withhold and deliver)).

    (6) Where money is due and owing under any contract of employment, express or implied, or is held by any person, firm, corporation, or association, political subdivision, or department of the state, or agency, subdivision, or instrumentality of the United States subject to withdrawal by the debtor, such money shall be delivered by remittance payable to the order of the secretary.

    (7) Delivery to the secretary of the money or other property held or claimed shall satisfy the requirement and serve as full acquittance of the order to withhold and deliver.

    (8) A person, firm, corporation, or association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States that complies with the order to withhold and deliver under this chapter is not civilly liable to the debtor for complying with the order to withhold and deliver under this chapter.

    (9) The secretary may hold the money or property delivered under this section in trust for application on the indebtedness involved or for return, without interest, in accordance with final determination of liability or nonliability.

    (10) Exemptions contained in RCW 74.20A.090 apply to orders to withhold and deliver issued under this section.

    (11) The secretary shall also, on or before the date of service of the order to withhold and deliver, mail or cause to be mailed a copy of the order to withhold and deliver to the debtor at the debtor's last known post office address, or, in the alternative, a copy of the order to withhold and deliver shall be served on the debtor in the same manner as a summons in a civil action on or before the date of service of the order or within two days thereafter.  The copy of the order shall be mailed or served together with a concise explanation of the right to petition for judicial review.  This requirement is not jurisdictional, but, if the copy is not mailed or served as in this section provided, or if any irregularity appears with respect to the mailing or service, the superior court, in its discretion on motion of the debtor promptly made and supported by affidavit showing that the debtor has suffered substantial injury due to the failure to mail the copy, may set aside the order to withhold and deliver and award to the debtor an amount equal to the damages resulting from the secretary's failure to serve on or mail to the debtor the copy.

    (12) An order to withhold and deliver issued in accordance with this section has priority over any other wage assignment, garnishment, attachment, or other legal process, except for another wage assignment, garnishment, attachment, or other legal process for child support.

    (13) The office of support enforcement shall notify any person, firm, corporation, association, or political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States required to withhold and deliver the earnings of a debtor under this action that they may deduct a processing fee from the remainder of the debtor's earnings, even if the remainder would otherwise be exempt under RCW 74.20A.090.  The processing fee shall not exceed ((ten)) fifteen dollars for the first disbursement to the department and one dollar for each subsequent disbursement under the order to withhold and deliver.

 

    Sec. 15.  RCW 74.20A.100 and 1989 c 360 s 5 are each amended to read as follows:

    (1) Any person, firm, corporation, association, political subdivision, or department of the state shall be liable to the department in ((an amount equal to one hundred percent of the value of the debt which is the basis of the lien, order to withhold and deliver, distraint, or assignment of earnings, or)) the amount that should have been withheld((, whichever amount is less)), together with costs, interest, and reasonable attorney fees if that person or entity:

    (a) Fails to answer an order to withhold and deliver within the time prescribed herein;

    (b) Fails or refuses to deliver property pursuant to said order;

    (c) After actual notice of filing of a support lien, pays over, releases, sells, transfers, or conveys real or personal property subject to a support lien to or for the benefit of the debtor or any other person;

    (d) Fails or refuses to surrender property distrained under RCW 74.20A.130 upon demand; or

    (e) Fails or refuses to honor an assignment of earnings presented by the secretary.

    (2) The secretary is authorized to issue a notice of debt pursuant to RCW 74.20A.040 and to take appropriate action to collect the debt under this chapter if:

    (a) A judgment has been entered as the result of an action in superior court against a person, firm, corporation, association, political subdivision, or department of the state based on a violation of this section; or

    (b) Liability has been established under RCW 74.20A.270.

 

    Sec. 16.  RCW 74.20A.240 and 1994 c 230 s 21 are each amended to read as follows:

    Any person, firm, corporation, association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States employing a person owing a support debt or obligation, shall honor, according to its terms, a duly executed assignment of earnings presented by the secretary as a plan to satisfy or retire a support debt or obligation.  This requirement to honor the assignment of earnings and the assignment of earnings itself shall be applicable whether said earnings are to be paid presently or in the future and shall continue in force and effect until released in writing by the secretary.  Payment of moneys pursuant to an assignment of earnings presented by the secretary shall serve as full acquittance under any contract of employment.  A person, firm, corporation, association, political subdivision, department of the state, or agency, subdivision, or instrumentality of the United States that complies with the assignment of earnings under this chapter is not civilly liable to the debtor for complying with the assignment of earnings under this chapter.  The secretary shall be released from liability for improper receipt of moneys under an assignment of earnings upon return of any moneys so received.

    An assignment of earnings presented by the secretary in accordance with this section has priority over any other wage assignment, garnishment, attachment, or other legal process except for another wage assignment, garnishment, attachment, or other legal process for support moneys.

    The employer may deduct a processing fee from the remainder of the debtor's earnings, even if the remainder would be exempt under RCW 74.20A.090.  The processing fee shall not exceed ((ten)) fifteen dollars from the first disbursement to the department and one dollar for each subsequent disbursement under the assignment of earnings.

 

    NEW SECTION.  Sec. 17.  The attorney general's office shall work with an association representing collection agencies state-wide and representatives from state-wide organizations of businesses with an average employee size of less than ten to establish a standard form and procedures to be used for wage garnishment orders to reduce paperwork and confusion for small businesses.  The group shall report to relevant committees of the legislature by February 1, 1998.

 

    NEW SECTION.  Sec. 18.  (1) A joint task force is created to study the reorganization of employment reporting requirements so that the office of support enforcement receives employment information from state agencies such as the employment security department rather than from employers, who have already filed the information with state agencies.  In addition, the joint task force will study the ability of the office of support enforcement to pay for the processing fees that employers may charge.  The task force shall develop a form for employers that collects all information required by the state for all employee reporting.  The task force will develop procedures and recommendations for reducing paperwork in the enforcement of child support orders using wage withholding.

    (2) The task force shall consist of the following members:  One representative from the office of support enforcement; one representative from the employment security department; one representative from the department of labor and industries; one representative from the department of revenue; and three members appointed by business organizations representing a variety of industries state-wide.

    (3) The task force shall report to the relevant committees of the legislature by February 1, 1998.

 

    NEW SECTION.  Sec. 19.  Sections 1, 3, 9, and 18 of this act are each added to chapter 6.27 RCW.

 


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