1997 Minnesota Statutes

     268.059 Garnishment for delinquent taxes and benefit 
  overpayments. 

    (a) The commissioner or a delegated representative may, 
 within six years after the date of assessment of the tax, or 
 payment in lieu of contribution, or determination of benefit 
 overpayment, or if a lien has been filed, within the statutory 
 period for enforcement of the lien, give notice to any employer 
 that an employee of that employer owes delinquent reemployment 
 insurance taxes or payments in lieu of contributions including 
 penalties, interest, and costs, or has an unpaid benefit 
 overpayment.  The commissioner can proceed under this section 
 only if the tax, payment in lieu of contributions, or benefit 
 overpayment is uncontested or if the time for any appeal has 
 expired.  The commissioner shall not proceed under this section 
 until the expiration of 30 calendar days after mailing to the 
 debtor employee, at the debtor's last known address, a written 
 notice of garnishment. The notice shall list: 

    (1) the amount of taxes, payments in lieu of contributions, 
 interest, penalties, costs, or benefit overpayment due from the 
 debtor; 

    (2) demand for immediate payment; and 

    (3) the commissioner's intention to serve a garnishment on 
 the debtor's employer pursuant to this section. 

    The effect of the notice shall expire 180 calendar days 
 after it has been mailed to the debtor provided that the notice 
 may be renewed by mailing a new notice which is in accordance 
 with this section.  The renewed notice shall have the effect of 
 reinstating the priority of the original claim.  The notice to 
 the debtor shall be in substantially the same form as that 
 provided in section 571.72.  The notice shall further inform the 
 debtor of the wage exemptions contained in section 550.37, 
 subdivision 14.  If no statement of exemption is received by the 
 commissioner within 30 calendar days from the mailing of the 
 notice, the commissioner may proceed under this section.  The 
 notice to the debtor's employer may be served by mail or by 
 delivery by an employee of the commissioner and shall be in 
 substantially the same form as provided in section 571.75.  Upon 
 receipt of the notice, the employer shall retain the earnings 
 due or to become due to the employee, the total amount shown by 
 the notice, subject to the provisions of section 571.922.  The 
 employer shall continue to retain each pay period until the 
 notice is released by the commissioner.  Upon receipt of notice 
 by the employer, the claim of the commissioner shall have 
 priority over any subsequent garnishments or wage assignments.  
 The commissioner may arrange between the employer and employee 
 for retaining a portion of the total amount due the employee 
 each pay period, until the total amount shown by the notice plus 
 accrued interest has been retained. 

    The "earnings due" any employee is defined in accordance 
 with section 571.921.  The maximum garnishment allowed under 
 this section for any one pay period shall be decreased by any 
 amounts payable pursuant to a garnishment action with respect to 
 which the employer was served prior to being served with the 
 notice of delinquency, and any amounts covered by any 
 irrevocable and previously effective assignment of wages; the 
 employer shall give notice to the commissioner of the amounts 
 and the facts relating to the assignment within ten days after 
 the service of the notice of delinquency on the form provided by 
 the commissioner as noted in this section. 

    (b) If the employee ceases to be employed by the employer 
 before the full amount set forth in a notice of garnishment plus 
 accrued interest has been retained, the employer shall 
 immediately notify the commissioner in writing of the 
 termination date of the employee and the total amount retained.  
 No employer may discharge or otherwise discipline any employee 
 by the reason of the fact that the commissioner has proceeded 
 under this section.  If an employer discharges an employee in 
 violation of this provision, the employee shall have the same 
 remedy as provided in section 571.927, subdivision 2. 

    (c) Within ten calendar days after the expiration of the 
 pay period, the employer shall remit to the commissioner, on a 
 form and in the manner prescribed by the commissioner, the 
 amount retained during each pay period under this section. 

    (d) Paragraphs (a) to (c), except provisions imposing a 
 liability on the employer for failure to retain or remit, shall 
 apply to cases in which the employer is the United States or any 
 instrumentality thereof or this state or any political 
 subdivision thereof. 

    (e) The commissioner shall refund to the employee excess 
 amounts retained from the employee under this section.  If any 
 excess results from payments by the employer because of willful 
 failure to retain or remit as prescribed in paragraph (c), the 
 excess attributable to the employer's payment shall be refunded 
 to the employer. 

    (f) Employers required to retain delinquent amounts under 
 this section shall not be required to compute any additional 
 interest, costs, or other charges to be retained. 

    (g) An employer that fails or refuses to comply with the 
 requirements of this section shall be liable as provided in 
 section 268.058, subdivision 3, paragraph (i). 

    HIST: 1996 c 417 s 28; 1997 c 66 s 70,79