
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3720D]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                           CHAPTER 37--CLAIMS
 
          SUBCHAPTER II--CLAIMS OF THE UNITED STATES GOVERNMENT
 
Sec. 3720D. Garnishment

    (a) Notwithstanding any provision of State law, the head of an 
executive, judicial, or legislative agency that administers a program 
that gives rise to a delinquent nontax debt owed to the United States by 
an individual may in accordance with this section garnish the disposable 
pay of the individual to collect the amount owed, if the individual is 
not currently making required repayment in accordance with any agreement 
between the agency head and the individual.
    (b) In carrying out any garnishment of disposable pay of an 
individual under subsection (a), the head of an executive, judicial, or 
legislative agency shall comply with the following requirements:
        (1) The amount deducted under this section for any pay period 
    may not exceed 15 percent of disposable pay, except that a greater 
    percentage may be deducted with the written consent of the 
    individual.
        (2) The individual shall be provided written notice, sent by 
    mail to the individual's last known address, a minimum of 30 days 
    prior to the initiation of proceedings, from the head of the 
    executive, judicial, or legislative agency, informing the individual 
    of--
            (A) the nature and amount of the debt to be collected;
            (B) the intention of the agency to initiate proceedings to 
        collect the debt through deductions from pay; and
            (C) an explanation of the rights of the individual under 
        this section.

        (3) The individual shall be provided an opportunity to inspect 
    and copy records relating to the debt.
        (4) The individual shall be provided an opportunity to enter 
    into a written agreement with the executive, judicial, or 
    legislative agency, under terms agreeable to the head of the agency, 
    to establish a schedule for repayment of the debt.
        (5) The individual shall be provided an opportunity for a 
    hearing in accordance with subsection (c) on the determination of 
    the head of the executive, judicial, or legislative agency 
    concerning--
            (A) the existence or the amount of the debt, and
            (B) in the case of an individual whose repayment schedule is 
        established other than by a written agreement pursuant to 
        paragraph (4), the terms of the repayment schedule.

        (6) If the individual has been reemployed within 12 months after 
    having been involuntarily separated from employment, no amount may 
    be deducted from the disposable pay of the individual until the 
    individual has been reemployed continuously for at least 12 months.

    (c)(1) A hearing under subsection (b)(5) shall be provided prior to 
issuance of a garnishment order if the individual, on or before the 15th 
day following the mailing of the notice described in subsection (b)(2), 
and in accordance with such procedures as the head of the executive, 
judicial, or legislative agency may prescribe, files a petition 
requesting such a hearing.
    (2) If the individual does not file a petition requesting a hearing 
prior to such date, the head of the agency shall provide the individual 
a hearing under subsection (a)(5) \1\ upon request, but such hearing 
need not be provided prior to issuance of a garnishment order.
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    \1\ So in original. Probably should be subsection ``(b)(5)''.
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    (3) The hearing official shall issue a final decision at the 
earliest practicable date, but not later than 60 days after the filing 
of the petition requesting the hearing.
    (d) The notice to the employer of the withholding order shall 
contain only such information as may be necessary for the employer to 
comply with the withholding order.
    (e)(1) An employer may not discharge from employment, refuse to 
employ, or take disciplinary action against an individual subject to 
wage withholding in accordance with this section by reason of the fact 
that the individual's wages have been subject to garnishment under this 
section, and such individual may sue in a State or Federal court of 
competent jurisdiction any employer who takes such action.
    (2) The court shall award attorneys' fees to a prevailing employee 
and, in its discretion, may order reinstatement of the individual, award 
punitive damages and back pay to the employee, or order such other 
remedy as may be reasonably necessary.
    (f)(1) The employer of an individual--
        (A) shall pay to the head of an executive, judicial, or 
    legislative agency as directed in a withholding order issued in an 
    action under this section with respect to the individual, and
        (B) shall be liable for any amount that the employer fails to 
    withhold from wages due an employee following receipt by such 
    employer of notice of the withholding order, plus attorneys' fees, 
    costs, and, in the court's discretion, punitive damages.

    (2)(A) The head of an executive, judicial, or legislative agency may 
sue an employer in a State or Federal court of competent jurisdiction to 
recover amounts for which the employer is liable under paragraph (1)(B).
    (B) A suit under this paragraph may not be filed before the 
termination of the collection action, unless earlier filing is necessary 
to avoid expiration of any applicable statute of limitations period.
    (3) Notwithstanding paragraphs (1) and (2), an employer shall not be 
required to vary its normal pay and disbursement cycles in order to 
comply with this subsection.
    (g) For the purpose of this section, the term ``disposable pay'' 
means that part of the compensation of any individual from an employer 
remaining after the deduction of any amounts required by any other law 
to be withheld.
    (h) The Secretary of the Treasury shall issue regulations to 
implement this section.

(Added Pub. L. 104-134, title III, Sec. 31001(o)(1), Apr. 26, 1996, 110 
Stat. 1321-369.)
