Child Support - Earnings Withholdings Limits

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[Brackets] indicate matter deleted from existing law.
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*sb0016*

SENATE BILL 16
D4 (6lr1609)
ENROLLED BILL
— Judicial Proceedings/Judiciary —
Introduced by Senator Sydnor

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at _________________ _______ o’clock, ________M.

______________________________________________
President.

CHAPTER ______

AN ACT concerning 1

Child Support – Earnings Withholdings Limits 2

FOR the purpose of specifying that the amount of earnings withholding or a wage 3
withholding order for child support may not exceed a certain percentage of the 4
obligor’s disposable earnings under certain circumstances; requiring an earnings 5
withholding order or earnings withholding notice sent to an obligor’s employer to 6
include information on certain limits on earnings withholding; specifying that, for 7
purposes of earnings withholding, the amount deducted from the obligor’s earnings 8
may not exceed a certain percentage of the obligor’s disposable earnings under certain 9
circumstances; authorizing an employee to contest the amount of an earnings 10
withholding order based on certain limits; and generally relating to limits on the 11
amount of earnings withholding for child support obligors. 12

BY repealing and reenacting, without amendments, 13
Article – Family Law 14
2 SENATE BILL 16

Section 10–101(a) and (b) 1
Annotated Code of Maryland 2
(2019 Replacement Volume and 2025 Supplement) 3

BY repealing and reenacting, with amendments, 4
Article – Family Law 5
Section 10–122, 10–128 10–129(a), 10–138, and 12–102.3 6
Annotated Code of Maryland 7
(2019 Replacement Volume and 2025 Supplement) 8

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10

Article – Family Law 11

10–101. 12

(a) In this title the following words have the meanings indicated. 13

(b) “Administration” means the Child Support Administration of the Department 14
of Human Services. 15

10–129. 16

(a) (1) [On] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 17
SUBSECTION AND THE F EDERAL CONSUMER CREDIT PROTECTION ACT, ON receipt 18
of a copy of an earnings withholding order or earnings withholding notice an employer shall, 19
beginning with the next pay period after receipt of the earnings withholding order or 20
earnings withholding notice: 21

[(1)] (I) deduct the amount of the withholding from the obligor’s earnings 22
on a regular basis; and 23

[(2)] (II) send the deducted net amount directly to the State disbursement 24
unit within 7 days not including Saturday, Sunday, or a legal holiday after the day on which 25
the earnings are paid to the obligor. 26

(2) THE AMOUNT DEDUCTED U NDER PARAGRAPH (1) OF THIS 27
SUBSECTION MAY NOT E XCEED 35% OF THE OBLIGOR ’S DISPOSABLE EARNINGS IF 28
THE OBLIGOR ’S DISPOSABLE EARNINGS INDIVIDUAL INCOME FOR THE CURRENT 29
YEAR DO DOES NOT EXCEED 250% OF THE FEDERAL POVER TY GUIDELINES FOR A 30
FAMILY OF ONE , UNLESS THE OBLIGOR W AS DETERMINED TO BE VOLUNTARILY 31
IMPOVERISHED AT THE TIME OF THE MOST RECENT COURT ORDER. 32

10–122. 33

SENATE BILL 16 3

(a) IN THIS SECTION, “DISPOSABLE EARNINGS” MEANS THAT PART OF THE 1
EARNINGS OF AN INDIV IDUAL REMAINING AF TER THE DEDUCTION FR OM THOSE 2
EARNINGS OF ANY AMOUNTS REQUIRED BY LAW TO BE WITHHELD. 3

(B) The amount of the earnings withholding [shall]: 4

(1) SHALL be enough to pay the support and any arrearage included in the 5
payments required by the support order; [and] 6

(2) SHALL include any arrearage accrued since the support order; AND 7

(3) MAY NOT EXCEED 25% OF THE OBLIGOR’S DISPOSABLE EARNINGS 8
FOR THE COMBINED SUP PORT ORDER AND ARREA RAGE IF THE OBLIGOR ’S 9
INDIVIDUAL INCOME FO R THE CURRENT YEAR D OES NOT EXCEED 250% OF THE 10
FEDERAL POVERTY GUID ELINES, UNLESS THE OBLIGOR W AS DETERMINED TO BE 11
VOLUNTARILY IMPOVERISHED AT THE TIME OF THE MOST RECENT COURT ORDER. 12

[(b)] (C) (1) (i) When arrearages under subsection [(a)(2)] (B)(2) of this 13
section are part of an earnings withholding order or earnings withholding notice, the total 14
arrearage withheld shall be in one lump–sum payment or apportioned over a period of time. 15

(ii) The amount of the arrearage withheld under subparagraph (i) of 16
this paragraph shall be determined by the tribunal or, in a case in which the 17
Administration is providing support services, by the Administration. 18

(2) The amount of arrears under subsection [(a)(2)] (B)(2) of this section 19
apportioned to each paym ent shall be at least $1 but not more than 25% of the current 20
support payment. 21

[(c)] (D) If there is more than one earnings withholding order or earnings 22
withholding notice against a single obligor, the Administration shall allocate amounts 23
available for withholding, giving priority to current support, up to the limits imposed by 24
the federal Consumer Credit Protection Act. 25

10–128. 26

(a) An earnings withholding order or an earnings withholding notice sent to the 27
obligor’s employer shall: 28

(1) be a separate document, and not include any other orders or pleadings; 29
and 30

(2) include only the following information: 31

4 SENATE BILL 16

(i) the amount to be withheld from the obligor’s earnings including 1
explanation of the application of the federal Consumer Credit Protection Act limits OR THE 2
LIMITS UNDER § 10–122 OF THIS SUBTITLE; 3

(ii) that subject to further orders of the tribunal, the employer is 4
required to withhold the stated amount on a regular and continuing basis commencing on 5
the beginning of the next pay period after receipt of the earnings withholding order or the 6
earnings withholding notice; 7

(iii) that the employer may deduct and retain from the employee’s 8
earnings an additional $2 for each deduction made under the earnings withholding order 9
or earnings withholding notice; 10

(iv) that the net amount withheld is to be sent promptly to the State 11
disbursement unit; and 12

(v) any other information that the employer needs to comply with 13
the earnings withholding order or earnings withholding notice. 14

(b) An earnings withholding order or earnings withholding notice is binding on 15
each present and future employer of the obligor on whom a copy of the earnings withholding 16
order or earnings withholding notice is served. 17

(c) Subject to federal law, an earnings withholding order or earnings withholding 18
notice under this Part III of this subtitle has priority over any other lien or legal process. 19

(d) The copy of the earnings withholding order or earnings withholding notice 20
served on the employer of the obligor shall contain a statement that upon willful violation 21
of the earnings withholding order or earnings withholding notice the employer shall be 22
subject to civil penalties. 23

10–138. 24

(a) Upon request of the obligor, the court shall immediately authorize service o f 25
an earnings withholding order. 26

(b) Notwithstanding any other provision of this Part III, a court may at any time 27
issue an earnings withholding order, in a contempt or other proceeding, if: 28

(1) the recipient or the support enforcement agency has filed a petition that 29
includes a request for an earnings withholding order; and 30

(2) the obligor is in arrears in support payments of more than 30 days. 31

(c) A hearing shall be held if the obligor appears and contests the issuance of the 32
order. 33

SENATE BILL 16 5

(d) The amount of the wage withholding order entered under this subsection: 1

(1) shall be enough to pay the support as originally entered by the court; 2
[and] 3

(2) may include a part of the arrearage; AND 4

(3) MAY NOT EXCEED 25% OF THE OBLIGOR’S DISPOSABLE EARNINGS 5
FOR THE COMBINED SUP PORT ORDER AND ARREA RAGE IF THE OBLIGOR ’S 6
INDIVIDUAL INCOME FO R THE CURRENT YEAR D OES NOT EXCEED 250% OF THE 7
FEDERAL POVERTY GUIDELINES FOR A FAMILY OF ONE, UNLESS THE OBLIGOR WAS 8
DETERMINED TO BE VOL UNTARILY IMPOVERISHE D AT THE TIME OF THE MOST 9
RECENT COURT ORDER. 10

12–102.3. 11

(a) (1) This section applies to administrative contests of withholdings from an 12
employee’s earnings made by an employer for the purpose of complying with this title. 13

(2) Nothing in this section may be construed to limit an employee’s right to 14
judicially contest an underlying court order requiring the employee to provide health 15
insurance coverage for the employee’s child. 16

(b) (1) An employee may only conte st a withholding under this section based 17
on a mistake of fact. 18

(2) The only issues that may be contested are: 19

(i) the identity of the employee; 20

(ii) whether there is an underlying court order requiring the 21
employee to provide health insurance coverage for the employee’s child; 22

(iii) that the amount of the withholding exceeds the limits of the 23
federal Consumer Credit Protection Act OR THE LIMITS UNDER § 10–122 10–129 OF 24
THIS ARTICLE; and 25

(iv) that the child for whom health insurance coverage is sought is 26
emancipated. 27

(c) An employee may contest a withholding by sending a written request for an 28
investigation to the Administration within 15 days after receiving notice of the withholding 29
from the employer. 30

(d) If an employee requests an investigation, the Administration: 31

6 SENATE BILL 16

(1) shall conduct an investigation within 15 days after the request; and 1

(2) on completion of the investigation, shall notify the employee of the 2
results of the investigation and the employee’s right to appeal the decision of the 3
Administration to the Office of Administrative Hearings. 4

(e) (1) (i) An employee may appeal the Administration’s decision to the 5
Office of Administrative Hearings by filing a written request for a hearing with the 6
Administration or the Office of Administrative Hearings. 7

(ii) The request for a hearing shall be made: 8

1. on a form provided by the Administration; and 9

2. within 15 days after receiving the written results of the 10
Administration’s investigation. 11

(2) The only issues that may be contested in an administrative hearing are: 12

(i) the identity of the employee; 13

(ii) whether there is an underlying court order requiring the 14
employee to provide health insurance coverage for the employee’s child; 15

(iii) that the amount of the withholding exceeds the limits of the 16
federal Consumer Credit Protection Act OR THE LIMITS UNDER § 10–122 10–129 OF 17
THIS ARTICLE; and 18

(iv) that the child for whom health insurance coverage is sought is 19
emancipated. 20

(3) An appeal under this section shall be conducted in accordance with Title 21
10, Subtitle 2 of the State Government Article. 22

(f) Enrollment of the employee’s child may not be stayed or terminated until the 23
employer receives written notice that the contest is resolved in the employee’s favor. 24

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2026 2028. 26