1998 Minnesota Statutes

     268.059 Garnishment for delinquent taxes and benefit 
  overpayments. 

    (a) The commissioner may give notice to any employer that 
 an employee owes delinquent taxes, payments in lieu of taxes, or 
 overpaid benefits, including penalties, interest, and costs, and 
 that the obligation to the department should be withheld from 
 the employee's wages.  The commissioner may proceed only if the 
 tax, payment in lieu of taxes, or benefit overpayment is 
 uncontested or if the time for any appeal has expired.  The 
 commissioner shall not proceed until 30 calendar days after 
 mailing to the debtor employee, at the debtor's last known 
 address, a written notice of intent to garnish wages and 
 exemption notice.  That notice shall list: 

    (1) the amount of taxes, payments in lieu of taxes, 
 overpaid benefits, interest, penalties, or costs due from the 
 debtor; 

    (2) demand for immediate payment; and 

    (3) the intention to serve a garnishment notice on the 
 debtor's employer. 

    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 that is in accordance with this section.  
 The renewed notice shall have the effect of reinstating the 
 priority of the original notice.  The exemption notice shall be 
 in substantially the same form as in section 571.72.  The notice 
 shall inform the debtor of the right to claim exemptions 
 contained in section 550.37, subdivision 14.  If no written 
 claim of exemption is received by the commissioner within 30 
 calendar days after mailing of the notice, the commissioner may 
 proceed with the garnishment.  The notice to the debtor's 
 employer may be served by mail and shall be in substantially the 
 same form as in section 571.75.  Upon receipt of the garnishment 
 notice, the employer shall withhold from the earnings due or to 
 become due to the employee, the amount shown on the notice plus 
 accrued interest, subject to section 571.922.  The employer 
 shall continue to withhold each pay period the amount shown on 
 the notice plus accrued interest until the garnishment 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 
 withholding a portion of the total amount due the employee each 
 pay period, until the total amount shown on the notice plus 
 accrued interest has been withheld. 

    The "earnings due" any employee is as defined in section 
 571.921.  The maximum garnishment allowed for any one pay period 
 shall be decreased by any amounts payable pursuant to any other 
 garnishment action served prior to the garnishment notice, 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 garnishment 
 notice on the form provided by the commissioner. 

    (b) If the employee ceases to be employed by the employer 
 before the full amount set forth on the garnishment notice plus 
 accrued interest has been withheld, the employer shall 
 immediately notify the commissioner in writing of the 
 termination date of the employee and the total amount withheld.  
 No employer may discharge or discipline any employee because the 
 commissioner has proceeded under this section.  If an employer 
 discharges an employee in violation of this section, 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 withheld during each pay period. 

    (d) Paragraphs (a) to (c) shall apply if the employer is 
 the state of Minnesota or any political subdivision. 

    (e) The commissioner shall refund to the employee any 
 excess amounts withheld from the employee. 

    (f) An employer that fails or refuses to comply with 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; 1998 c 265 s 18