Revision: Dec. 22, 2011, midnight
HB 1579 – AS INTRODUCED
2012 SESSION
08/09
HOUSE BILL 1579
AN ACT authorizing the department of employment security to garnish the wages of individuals with delinquent unemployment compensation overpayments.
SPONSORS: Rep. K. Sullivan, Rock 15
COMMITTEE: Labor, Industrial and Rehabilitative Services
This bill authorizes the department of employment security to garnish the wages of individuals with delinquent unemployment compensation overpayments.
This bill is a request of the department of employment security.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type
12-2298
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT authorizing the department of employment security to garnish the wages of individuals with delinquent unemployment compensation overpayments.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Garnishment. Amend RSA 282-A by inserting after section 152 the following new section:
282-A:152-a Garnishment.
I. Definitions. In this section:
(a) “Date that the determination creating the overpayment becomes final” means the date an individual has no appeal or appeal period pending under RSA 282-A:164, 165, and 42-68.
(b) “Earnings” means any form of payment to an individual including, but not limited to, salary, wages, commission, or other compensation.
II. Upon the failure of any individual debtor to pay any contribution due to the state within 90 days from its due date, or any overpayment due to the state within 90 days of the date that the determination creating the overpayment becomes final, the commissioner of the department of employment security or the commissioner’s duly authorized representative charged by law with collection of such contribution or overpayment may serve a notice of garnishment upon any employer that owes, or may owe in the future, earnings to such individual debtor. No individual debtor shall be deemed under this section to have failed to pay any contribution due to the state within 90 days from its due date, or any overpayment due to the state within 90 days of the date that the determination creating the overpayment becomes final, if the debtor:
(a) Has agreed to a payment plan approved by the department; and
(b) Is in substantial compliance with such payment plan.
III. The notice of garnishment shall advise the individual debtor’s employer:
(a) Of the total amount subject to garnishment;
(b) That the garnishment applies to any current or subsequent earnings;
(c) That any amounts which the employer is obligated to withhold pursuant to RSA 458-B have priority over amounts subject to garnishment under this section;
(d) That the amount garnished pursuant to this section when added to the amount withheld pursuant to RSA 458-B may not exceed the limits set under RSA 458-B:4, IV;
(e) That the employer must implement garnishment no later than the first pay period that occurs after 14 days after the notice was mailed;
(f) That the garnishment is binding upon the employer until payment in full is made of the total amount subject to garnishment;
(g) That the employer must send the garnished amount to the commissioner at the same time the individual debtor is paid;
(h) Of the provisions, liabilities, and penalties in paragraphs IV-IX; and
(i) Of the employer’s right to deduct a fee of $1 for each garnishment for the administrative cost incurred as a result of the garnishment procedures.
IV. Garnishment under this section shall have priority over any other legal process under state law against the same earnings except withholding under RSA 458-B.
V. In addition to the amount garnished under this section, the employer may deduct a fee of $1 for each garnishment for the administrative cost incurred as a result of the garnishment procedures.
VI. An employer shall:
(a) Apply the garnishment to any current or subsequent earnings.
(b) Give priority to any amounts that the employer is obligated to withhold pursuant to RSA 458-B over amounts subject to garnishment under this section.
(c) Not allow the amount garnished pursuant to this section when added to the amount withheld pursuant to RSA 458-B to exceed the limits set under RSA 458-B:4, IV.
(d) Implement garnishment no later than the first pay period that occurs after 14 days after the notice was mailed.
(e) Treat the garnishment as binding upon the employer until payment in full is made of the total amount subject to garnishment.
(f) Send the garnished amount to the commissioner at the same time the individual debtor is paid.
(h) Notify the commissioner within 15 days of the individual debtor’s termination of employment, and shall provide the individual debtor’s last known address and the name and address of the present employer, if known.
(i) Be liable for the accumulated amount it should have garnished if it fails to garnish in accordance with the provisions of the notice.
VII. The employer shall be liable for an administrative fine of $100 per pay period for each individual debtor with respect to whom the employer has willfully failed to comply with the provisions of subparagraphs VI(d) and VI(f). For other willful violations of this section an administrative fine of not less than $100 or more than $500 may be imposed. Prior to assessing such fine against the employer, the commissioner shall notify the employer of its intent to assess the fine, the amount of the fine, and the date by which the fine is payable, and shall provide the employer with the opportunity to contest the imposition of the fine.
VIII. An employer shall be guilty of a misdemeanor and subject to a fine of up to $1,000:
(a) For discharging, refusing to employ, or taking any disciplinary action against an individual debtor because of the garnishment procedures.
(b) For failure to comply with the provisions of paragraph VI.
IX. Notwithstanding the 90-day limitation in paragraph II an individual debtor may, subject to the approval of the department, agree to voluntary garnishment at any time.
2 Restitution. Amend RSA 282-A:164 to read as follows:
282-A:164 Restitution. [Whoever] Any individual who wilfully makes a false statement or representation or knowingly fails to disclose a material fact, whether before a representative of the department of employment security of the state of New Hampshire or in another state before a representative of the unemployment compensation agency of that state which is acting in the capacity of agent for the state of New Hampshire, to obtain or increase any benefit or other payment under this chapter, or under the laws of any other state or the federal government, either for [himself] such individual, or for any other person, may, in the discretion of the commissioner or [his] the commissioner’s authorized representative, be determined to be disqualified for benefits for each week directly affected by the false statement or representation or failure to disclose a material fact. All benefits received for each week of such disqualification shall be deemed overpaid, and restitution in an amount equal to such overpayment, plus a penalty equal to 15 percent of the overpaid benefits, shall be ordered by the commissioner or [his] the commissioner’s authorized representative. In addition to such disqualification, [he] such individual shall be deemed ineligible to receive benefits for not less than 4 nor more than 52 consecutive weeks, beginning with the week in which the decision is made, as determined by the commissioner or [his] the commissioner’s authorized representative. For each week of determined ineligibility, an amount equal to the individual’s maximum weekly benefit rate during such week shall be deducted from the maximum benefits available to him or her during the benefit year in which such week falls; but no change shall be made in his or her weekly benefit amount because of this deduction. Payments of the 15 percent penalty shall be deposited into the unemployment compensation fund established in RSA 282-A:103. Any proceeding or action taken under this section shall be in lieu of and not in addition to any proceeding or action taken under RSA 282-A:161.
3 Effective Date. This act shall take effect 60 days after its passage.