Commercial Law - Attachment of Wages - Exemptions (Exempt Income Protection Act)
Summary
SB31, the Exempt Income Protection Act, would change Maryland’s wage garnishment exemption rules for judgment debtors. The bill increases the protected portion of wages from the current formula to the greater of 75% of disposable wages and certain public benefits, or an amount tied to 150% of the federal poverty level for weekly income based on household size. It also keeps medical insurance deductions exempt from attachment and clarifies that the amount subject to attachment is calculated per pay period.
The bill also adds a new notice requirement for employers or garnishees served with an attachment. Employers would have to inform the judgment debtor in writing of the exempt amount, how the attachable wages were calculated, and how to contest the attachment under Maryland Rule 3-646. The bill would take effect July 1, 2025, and would amend Sections 15-601.1 and 15-603 of the Commercial Law Article.
Impact
SB31 would significantly expand wage protections in Maryland debt collection law by increasing the amount of earnings and certain benefits shielded from garnishment. It would affect judgment debtors, employers/garnishees, and judgment creditors by changing the calculation of attachable wages and requiring additional written notice when wages are attached. The bill would amend the Commercial Law Article and likely reduce the amount of income available for collection in many cases, especially for lower-income workers and households.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears to be protective of workers and financially vulnerable debtors. The bill’s title and provisions suggest a consumer-protection and anti-poverty rationale, emphasizing income preservation and clearer notice rights. No contrary positions are documented in the supplied context, but the measure would likely be viewed favorably by debtor advocates and more cautiously by creditors and collection interests.
Contention
The main point of contention is likely the balance between protecting debtors’ income and preserving creditors’ ability to collect on judgments. Supporters would likely emphasize that the bill better protects wages, social security, disability, unemployment benefits, and low-income households, while opponents may argue that the higher exemption threshold makes collection harder and could reduce recovery on valid debts. Another possible issue is the added administrative burden on employers/garnishees, who would be required to calculate exemptions and provide detailed notices to debtors.