10-144-400 Me. Code R. § 2-2

Current through 2024-51, December 18, 2024
Section 144-400-2-2 - Income withholding order (22 MRSA 3816)
A. Income withholding. FIR may serve an income withholding order upon the obligor's employer or other payor of income to collect the unrecovered amount of the overpayment 21 days after service of a notice to repay, unless collection action is stayed under section 1, subsection H (page 5). FIR shall send the obligor a copy of an income withholding order issued under this section. The copy must be sent by regular mail to the obligor's most recent address of record.
B. Exempt property; withholding limit. An obligor's weekly income equal to 30 times the federal minimum wage is exempt from income withholding. In addition, an income withholding order may not exceed 25% of the obligor's gross income.
C. Payor duty. When an income withholding order is received, the obligor's employer or other payor of income shall withhold the amount stated in the order when the obligor is next paid. Income withheld must be sent to the department within 10 days of the date of withholding.
D. Withholding order; payor notice. An income withholding order must state all the following.
1 The name of the obligor.
2 The amount owed to the department.
3 The amount of income that the employer or other payor of income must withhold.
4 Withholding must take place when the obligor is normally paid. The income withheld must be sent to the department within 10 days of each withholding.
5 The withholding order applies to current and future periods of employment.
6 The rules for exempt income and withholding limits.
7 The substance of any other rights, duties, and potential liabilities of an employer or other payor of income as provided in section 3 (page 8).
E. Request for hearing. An obligor may ask for a hearing to contest an income withholding order. The request must be in writing. If mailed to the department, the request must be postmarked not later than 30 days after the date the withholding order was mailed to the obligor. If delivered to an office of the department, the request must be delivered not later than 30 days after the date of mailing to the obligor. The department shall tell the obligor of the right to hearing when it mails the obligor a copy of the income withholding order.
F. Hearing. At hearing, the obligor may contest the accuracy of the income withholding order. The obligor also may contest whether the order was issued according to the requirements of this chapter. The department shall conduct the hearing as provided by 5 MRSA9051 - 9064.
G. Decision after hearing. The department shall issue a decision after hearing without undue delay. The decision must include a ruling on the accuracy of the withholding order. It also must state if the order was issued according to the terms of this chapter. The decision must be based on the hearing record and rules adopted by the commissioner. A copy of the decision must be sent by regular mail to the obligor's most recent address of record. The decision must tell the obligor of the right to appeal to Superior Court within 30 days of the date of the decision (Rule 80C, Maine Rules of Civil Procedure).
H. Duration of order. An income withholding order stays in effect until:
1 FIR releases the order in writing; or
2 A court order changes or ends the order.
3. Employers and other payors of income
A. Payor compensation ( 22 MRSA3818). As payment for honoring an income withholding order or assignment of earnings, the employer or other payor of income may deduct $2.00 from the obligor's income for each withholding.
B. Payor protected ( 22 MRSA3819). An employer or other payor of income may not be held liable for honoring an income withholding order or assignment of earnings issued by FIR.
C. Failure to honor ( 22 MRSA3820). An employer or other payor of income who knowingly fails to honor an income withholding order or assignment of earnings is liable to the department for the amount of income not withheld or the amount of income withheld and not sent to the department, as applicable. A court may award the department costs, interest and attorney's fees in an action brought under this section.
D. Employee protected ( 22 MRSA3821). An employer may not fire, refuse to hire, punish, or otherwise discriminate against an employee because of action by the department under this section. An employer who violates this section can be fined up to $5,000, payable to the State, to be recovered in a civil action. The employee can also sue the employer for damages, attorney's fees and court costs.

10-144 C.M.R. ch. 400, § 2-2