FINAL BILL REPORT

                   SB 6237

                           C 29 L 00

                      Synopsis as Enacted

Brief Description:  Modifying who may deduct processing fees for certain payroll deductions.

Sponsors:  Senator Fairley; by request of Employment Security Department.

Senate Committee on Labor & Workforce Development

House Committee on Commerce & Labor

Background:  Washington State law allows for the collection and interception of child support by withholding of wages or unemployment insurance benefits.  When payroll deduction or  benefit intercept is used, the employer or the Employment Security Department is permitted, but not required, to also deduct a processing fee.

The U.S. Department of Labor has found Washington State to be potentially out of compliance with federal unemployment insurance law, which does not permit such a fee.  In order to conform to federal requirements, the Employment Security Department is seeking to clarify that the department will not deduct a processing fee from unemployment insurance benefits.

Summary:  The Employment Security Department is not permitted to deduct a processing fee when intercepting and deducting child support from an individual=s unemployment insurance benefits.

Votes on Final Passage:

Senate 420

House970

Effective:March 17, 2000