§ 36-5-501. Income withholding(a)(1) For any order of child support issued, modified, or enforced on or after July 1, 1994, the court shall order an immediate assignment of the obligor's income, including but not necessarily limited to: wages, salaries, commissions, bonuses, workers' compensation, disability, payments pursuant to a pension or retirement program, profit sharing, interest, annuities, and other income due or to become due to the obligor. The order of assignment shall issue regardless of whether support payments are in arrears on the effective date of the order. The court's order, shall include an amount sufficient to satisfy an accumulated arrearage, if any, within a reasonable time. The order may also include an amount to pay any medical expenses which the obligor owing the support is obligated or ordered to pay. Withholding shall not exceed fifty percent (50%) of the employee's income after FICA, withholding taxes, and a health insurance premium which covers the child, are deducted. The order shall also include an amount necessary to cover the fee due the clerk of the court or the department, if appropriate. In the event the court does not order an immediate assignment pursuant to subdivision (a)(2), every order shall be enforceable by income assignment as provided in this chapter.
(2) Income assignment under this subsection shall not be required:
(A) If, in cases involving the modification of support orders, upon proof by one party, there is a written finding of fact in the order of the court that there is good cause not to require immediate income assignment and the proof shows that the obligor has made timely payment of previously ordered support. "Good cause" shall only be established upon proof that the immediate income assignment would not be in the best interests of the child. The court shall, in its order, state specifically why such assignment will not be in the child's best interests; or
(B) If there is a written agreement by both parties that provides for alternative arrangements. Such agreement must be reviewed by the court and entered in the record.
(C) If the case is being enforced under Title IV-D of the Social Security Act and is subject to an assignment of support due to receipt of public assistance, the department of human services or its contractor must be notified of the request for exemption under subdivisions (a)(2)(A) and (a)(2)(B) and may present evidence for purposes of subdivision (a)(2)(A), or must agree in order to permit exemption from income withholding as otherwise permitted pursuant to subdivision (a)(2)(B).(3) In any case, regardless of whether income withholding is ordered, in which a parent is required by a court order to provide health coverage for a child, and the parent is eligible for family health coverage through an employer doing business in the state, the clerk, or the department, by income withholding order, shall order withheld from the parent's compensation from the parent's employer the employee's share, if any, of premiums for such health coverage and the employer shall pay such share of premiums to the insurer.
(b)(1)(A) In all cases in which the court has ordered immediate income assignment, the clerk of the court, or the department of human services or its contractor in Title IV-D cases, shall immediately issue an income assignment to an employer once the employer of an obligor has been identified.
(B) In all cases in which an immediate assignment of income has not been previously ordered, or in which an obligor who is ordered to pay child support in which an immediate income assignment was not required pursuant to subdivision (a)(2), and when the obligor becomes in arrears as defined in this subdivision as reflected in the records of the clerk of court, if the support is paid through the clerk's office or in the records of the department of human services, then the clerk of the court, or the department or its contractor in Title IV-D child support cases shall, without the necessity of an affidavit of the obligee, issue an order of income assignment to the employer of the obligor, if known, or at such time as the employer's name and whereabouts are made known to the clerk or the department or its contractor. No court order expressly authorizing an income assignment shall be required under this paragraph.
(C) The order of assignment issued by the department or its contractor pursuant to subdivisions (b)(1)(A) and (b)(1)(B) shall include an amount sufficient to satisfy an accumulated arrearage within a reasonable time without further order of the court. The order shall also include an amount to pay any medical expenses which the obligor owing the support is obligated or ordered to pay. Withholding shall not exceed fifty percent (50%) of the employee's income after FICA, withholding taxes, and a health insurance premium which covers the child, are deducted. The order shall also include an amount necessary to cover the fee due the clerk of the court, if appropriate.
(D) In all other cases in which the child support payments were ordered to be paid directly to a parent or guardian or custodian of the child or children, and the child support payments are in arrears as defined in this subdivision, the parent, guardian or custodian may, by affidavit filed with the clerk, or, the department or its contractor in Title IV-D child support cases, request that an order of income assignment be sent by the clerk of the court, or by the department, to the employer, if known, or at such time as the employer's name and whereabouts are made known to the clerk, the department or its contractor.
(E) The order of assignment issued by the clerk or the department or its contractor pursuant to subdivision (b)(1)(D) shall include an amount sufficient to satisfy an accumulated arrearage within a reasonable time. The order may also include an amount to pay any medical expenses which the obligor owing the support is obligated or ordered to pay. Withholding shall not exceed fifty percent (50%) of the employee's income after FICA, withholding taxes, and a health insurance premium which covers the child, are deducted. The order shall also include an amount necessary to cover the fee due the clerk of the court, if appropriate.
(F) An income assignment pursuant to this subsection shall be mandatory even if subsequent to the issuance of the order of assignment the obligor pays the amount of arrearage in part or in full as long as current support or arrearages are still owed.
(G) For purposes of this part, "arrears" means any occasion on which the full amount of ordered support ordered for or on behalf of a minor child, or for a spouse or former spouse of the obligor with whom the child is living to the extent the spousal support would be included for the purposes of > 42 U.S.C. § 654A(4), is not paid by the due date for arrears as defined in § 36-5-101(a)(5) unless an income assignment is in effect and the payor of income is paying pursuant to subsection (g).
(H) Clerks of court are authorized to issue an order of income assignment to the employer of the obligor and to institute the process to assign income when the obligor fails to pay court costs, but shall not have priority over the income assignment for child support.(2) When an order of income assignment has been issued pursuant to subdivision (b)(1)(B), the clerk, or the department in Title IV-D cases, shall send a notice to the obligor within two (2) business days of the issuance of the order of income assignment being sent to the obligor's employer. The notice must be sent to the address of the obligor, if known or to the obligor at the address of the employer of the obligor if the obligor's address is unknown.
(3) In addition to any other required or pertinent information, all notices of assignment sent to the obligor pursuant to this section shall include:
(A) The amount of money owed by the obligor, including both current support and arrears;
(B) The amount of income withholding, except where otherwise ordered by the court, which shall be applied for current support, the amount which shall be applied for arrearages and the amount to be applied for alimony. The amount withheld shall be an amount reasonably sufficient to satisfy an accumulated arrearage within a reasonable time;
(C) Notice that the obligor has the right to a hearing before the court, or, in Title IV-D cases, an administrative review by the department of human services. The administrative hearing shall be conducted pursuant to the provisions of part 10 of this chapter.
(D) That the obligor must request the hearing by notifying the clerk, or the department in Title IV-D cases, within fifteen (15) days of the date of the notice, or the date of personal service, if used.
(E) The information contained in subsections (c), (d) and (e); and
(F) All information provided to the employer in subsections (f)-(l).(c)(1) In the event the obligor requests a hearing in cases not being enforced pursuant to Title IV-D regarding the withholding as provided in subdivisions (b)(1)(B) within fifteen (15) days of the date of the notice, or the date of personal service, if used, the clerk shall promptly docket the case with the referee or court as provided by part 4 of this chapter, shall give notice to all parties, and shall take any other action as is necessary to ensure that the time limits provided in subsection (d) are met.
(2) If the withholding was issued by the department or its contractor in Title IV-D cases and the obligor requests an administrative hearing as permitted by part 10 of this chapter, the department shall promptly schedule the case for a hearing, shall give notice to all parties, and shall take any other action as is necessary to ensure that the time limits provided in subsection (d) are met.
(d) In all cases in which the obligor requests a hearing or administrative review, the referee or court, or the department, shall conduct a hearing and make a determination, and the clerk or department shall notify the obligor and the employer of the decision within forty-five (45) days of the date of the order provided in subdivision (b)(1).
(e) The obligor may contest the results of the department's administrative review by requesting a judicial review as provided in part 10 of this chapter.
(f) The amount to be withheld under the income assignment withheld for support may not be in excess of fifty percent (50%) of the income due after FICA, withholding taxes, and a health insurance premium which covers the child are deducted.
(g) The assignment or any subsequent modification is binding upon any employer, person or corporation, including successive employers, fourteen (14) days after mailing or other transmission or personal service of the order from the clerk of the court or the department by the order of assignment and the amount withheld must be sent to the clerk or the department, or if based upon a direct withholding from another state pursuant to the Uniform Interstate Family Support Act, compiled in parts 20-29 of this chapter, shall be sent to the other state as directed by that order of assignment, within seven (7) days of the date the employee is paid or the date the obligor is to be paid or the date the amount due the obligor is to be credited, and is binding until further notice. The employer, person or corporation must notify the clerk or the department or the entity in the other state to which the withheld income was to be sent of the date of termination of employment or income payments and provide the clerk or the department with the individual's last known address and name and address of the new employer or source of income, if known.
(h) It is unlawful for an employer to use the assignment as a basis for discharge or any disciplinary action against the employee. Compliance by an employer, other person, institution or corporation with the order shall operate as a discharge of the liability of such employer, other person, institution or corporation to the affected individual as to that portion of the income so affected. If the employer, other person, institution or corporation fails to comply with the notice, such employer, other person, institution or corporation is liable for any amounts up to the accumulated amount which should have been withheld. An employer shall be subject to a fine for a Class C misdemeanor if the income assignment is used as a basis to refuse to employ a person or to discharge the obligor/employee or for any disciplinary action against the obligor/employee or if the employer fails to withhold from the obligor's income or to pay such amounts to the clerk or to the department as may be directed by the withholding order.
(i)(1) An assignment under this section shall take priority over any other assignment or garnishment of wages, as described in title 26, chapter 2, or salary, commissions or other income, except those deductions made mandatory by law or hereafter made mandatory.
(2)(A) If the employer, person, corporation or institution receives more than one (1) order of income assignment against an individual, he must comply by giving first priority to all orders for amounts due for current support due a child, second to all orders for amounts due for arrearages due a child, third to all orders for amounts due for current support due a spouse, and fourth to all orders for amounts due for arrearages due a spouse, and must honor all withholdings to the extent the total amount withheld from wages does not exceed fifty percent (50%) of the employee's wages after FICA and withholding taxes and a health insurance premium which covers the child are deducted.
(B) Any employer, person or entity receiving an order for income withholding from another state or territory shall apply the income withholding law of the state of the obligor's principal place of employment in determining:
(i) The employer's fee for processing an income withholding order;
(ii) The maximum amount permitted to be withheld from the obligor's income;
(iii) The time periods within which the employer must implement the income withholding order and forward the child support payment;
(iv) The priorities for withholding and allocating income withheld for multiple child support obligees; and
(v) Any withholding terms and conditions not specified in the order.
(C) The "principal place of employment" for an obligor who is employed in this state and for whom an income withholding order has been received in this state from another state or territory shall be deemed to be this state, and the provisions set forth in the requirements of this section regarding income withholding shall apply to the determinations made in (i)(2)(B)(i)-(v).(3)(A) If any employer, person, or other entity receives any income assignment for current support against an individual which would cause the deduction from any two (2) or more assignments for current support to exceed fifty percent (50%) of the individual's income after FICA, withholding taxes, and a health insurance premium which covers the child are deducted, then the allocation of all current support ordered withheld by all income assignments they receive against that individual shall be determined by the employer, person, or entity as follows:
(i) The employer, person, or other entity shall determine the total dollar amount of the assignments for current support it has received involving the obligor to whom it owes any wages, salaries, commissions, bonuses, workers' compensation, disability, payments pursuant to a pension or retirement program, profit sharing, interest, annuities, and other income due or to become due to the obligor;
(ii) Each individual assignment shall then be calculated as a percentage of the total obtained pursuant to subdivision (i)(3)(A)(i);
(iii) The employer, person, or entity shall then allocate the available income of the obligor, subject to the limits described above, based on the percentage computation pursuant to subdivision (i)(3)(A)(ii) and shall, as directed by the order of income assignment, pay the amounts withheld from the obligor's income, to the clerk or clerks, or to the department, its contractor, or other entity or Title IV-D child support agency in any other state which issued such order.
(B) In the event all current support obligations are met from the assignments and support arrearages exist in more than one (1) case and there is not sufficient income to pay all ordered support arrearage, then the support arrearages shall be allocated on the same basis as set forth in subdivision (i)(3)(A).
(C) The obligor shall be responsible for seeking any modifications to the existing orders for support.(4) An employer, person, corporation or institution may make one (1) payment to the clerk of the court, the department its contractor or other entity in another state so long as the employer separately identifies the portion of the single payment attributable to each individual obligor parent, and, if amounts are included which represent withholdings for more than one (1) pay period, so long as the amounts representing each pay period are separately identified.
(j) "Employer, person, corporation or institution," as used in this section, includes the federal government, the state and any political subdivision thereof and any other business entity which has in its control funds due to be paid to a person who is obligated to pay child support.
(k) Any employer, person, corporation or institution which is ordered to pay an income assignment on behalf of an individual may charge the obligor parent an amount of up to five percent (5%) not to exceed five dollars ($5.00) per month for such service.
(l) The notices and orders required to be issued pursuant to this section shall be transmitted to any party or person by any method chosen by the court or the department, including but not limited to: certified mail, return receipt requested, regular mail, electronic mail, facsimile transmission, or by personal service, and may be generated by computer or on paper. The notices and orders required by this section need not be entered in the minutes of the court. If a notice or order is returned or otherwise not deliverable, then service shall be had by any alternative method chosen by the court or the department, as listed in this subsection. Before taking action against an employer or other payor for failure to comply with this part, the court or department shall ensure that service of the notice was made by certified mail or by personal service. Electronically reproduced signatures shall be effective to issue any orders or notices pursuant to this section.
(m) There shall be no litigation tax imposed on proceedings pursuant to this part.
(n)(1) The department of human services shall have authority to establish mandatory rules, forms, and any necessary standards and procedures to implement income assignments which shall be used by all the courts and by the department pursuant to this part. The department of human services may implement the use of such forms at any time following passage of this act by public necessity rule following approval by the attorney general and reporter. Permanent rules implementing the forms shall be promulgated pursuant to the rulemaking provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(2) Prior to the filing of a notice of rulemaking for permanent rules pursuant to this subsection, the rules shall be sent by the department for review by an advisory group composed of two (2) representatives of the state court clerks' conference appointed by the president of the state court clerks' association, two (2) representatives of the judges of courts which have child support responsibilities one of whom will be appointed by the Chief Justice of the Supreme Court and one of whom will be appointed by the president of the council of juvenile and family court judges, a representative of the administrative office of the courts, and two (2) representatives of the department of human services designated by the commissioner. Nothing contained herein shall be construed to prevent the department from filing any notice of rulemaking prior to or at the time the proposed permanent rules are sent to the advisory group where the department determines that immediate filing of the notice without prior review by the advisory group is necessary to meet any requirements relative to the potential expiration of public necessity or emergency rules or to comply with any federal statutory or regulatory requirements or any federal policy directives.