2011 Wisconsin Laws 767.75 – Assignment of income for payment obligations
767.75
767.75 Assignment of income for payment obligations.
767.75(1)
(1) Definitions. In this section:
767.75(1)(a)
(a) “Employer” includes the state and its political subdivisions.
767.75(1)(b)
(b) “Payment order” means an order for child support under this chapter, for maintenance payments under § 767.225 or 767.56, for family support under this chapter, for costs ordered under § 767.805 (4) or 767.89 (3), for support by a spouse under § 767.001 (1)(f), or for maintenance payments under § 767.001 (1)(g); an order for or obligation to pay the annual receiving and disbursing fee under § 767.57 (1e)(a); an order for a revision in a judgment or order with respect to child support, maintenance, or family support payments under § 767.59; a stipulation approved by the court for child support under this chapter; and an order for child or spousal support entered under § 948.22 (7).
767.75(1f)
(1f) Payment order as assignment of income. A payment order constitutes an assignment of all commissions, earnings, salaries, wages, pension benefits, benefits under ch. 102 or 108, lottery prizes that are payable in installments, and other money due or to be due in the future to the department or its designee. The assignment shall be for an amount sufficient to ensure payment under the order, obligation, or stipulation and to pay any arrearages due at a periodic rate not to exceed 50% of the amount of support due under the order, obligation, or stipulation so long as the addition of the amount toward arrearages does not leave the party at an income below the poverty line established under 42 USC 9902 (2).
767.75(1m)
(1m) Obligation continuing. If a party’s current obligation to pay maintenance, child support, spousal support, or family support terminates but the party has an arrearage in the payment of one or more of those payments or in the payment of the annual receiving and disbursing fee, any assignment under sub. (1f) continues in effect, in an amount up to the amount of the assignment before the party’s current obligation terminated, until the arrearage is paid in full.
767.75(2m)
(2m) Unpaid receiving and disbursing fees; assignment.
767.75(2m)(a)
(a)
767.75(6)
(6) Failure to comply with assignment obligations.
767.75(7m)
(7m) Change in payroll period.
767.75(7m)(b)1.
1. The withholding frequency corresponds to the new payroll period.
767.75(7m)(b)2.
2. The amounts to be withheld reflect the adjustment to the withholding frequency.
767.75(2h)
(2h) Delayed withholding; failure to pay. If a court-ordered assignment, including the assignment specified under sub. (1f) for the payment of any arrearages due, does not require immediately effective withholding and a payer fails to make a required maintenance, child support, spousal support, family support, or annual receiving and disbursing fee payment within 10 days after its due date, within 20 days after the payment’s due date the court or county child support agency under § 59.53 (5) shall cause the assignment to go into effect by providing notice of the assignment in the manner provided under sub. (2r) and shall send a notice by regular mail to the last-known address of the payer. The notice sent to the payer shall inform the payer that an assignment is in effect and that the payer may, within a 10-day period after the notice is mailed, by motion request a hearing on the issue of whether the assignment should remain in effect. The court shall hold a hearing requested under this subsection within 10 working days after the date of receipt of the request. If at the hearing the payer establishes that the assignment is not proper because of a mistake of fact, the court may direct that the assignment be withdrawn. Either party may, within 15 working days after the date of a decision by a circuit court commissioner under this subsection, seek review of the decision by the court with jurisdiction over the action.
767.75(2m)(a)1.
1. An obligation to pay unpaid fees under s. 767.57 (1e) (b) 1m. constitutes an assignment of all commissions, earnings, salaries, wages, pension benefits, benefits under ch. 102 or 108, lottery prizes that are payable in installments, and other money due or to be due in the future to the department or its designee.
767.75(2m)(a)2.
2. An obligation to pay unpaid fees under s. 767.57 (1e) (b) 2m. constitutes an assignment of all commissions, earnings, salaries, wages, pension benefits, benefits under ch. 102 or 108, lottery prizes that are payable in installments, and other money due or to be due in the future to the clerk of court to whom the fees are owed, or to his or her successor.
767.75(4)
(4) Assignment priority. A withholding assignment or order under this section or § 767.225 (1)(L) or 767.513 (3) has priority over any other assignment, garnishment, or similar legal process under state law.
767.75(2m)(b)
(b) The county child support agency under § 59.53 (5) may cause an assignment under par. (a) to go into effect by providing notice of the assignment in the manner provided under sub. (2r) and sending a notice by regular mail to the last-known address of the payer. The notice sent to the payer shall inform the payer that an assignment is in effect and that the payer may, within a 10-day period after the notice is mailed, by motion request a hearing on the issue of whether the assignment should remain in effect. The court shall hold a hearing requested under this paragraph within 10 working days after the date of receipt of the request. If at the hearing the payer establishes that the assignment is not proper because of a mistake of fact, the court may direct that the assignment be withdrawn. The payer or the county child support agency may, within 15 working days after the date of a decision by a circuit court commissioner under this paragraph, seek review of the decision by the court with jurisdiction over the action.
767.75(2r)
(2r) Notice of assignment to income source. Upon entry of each order for child support, maintenance, family support, support by a spouse, or the annual receiving and disbursing fee, and upon approval of each stipulation for child support, unless the court finds that income withholding is likely to cause the payer irreparable harm or unless § 767.76 applies, the court or county child support agency under § 59.53 (5) shall provide notice of the assignment by regular mail or by facsimile machine, as defined in § 134.72 (1)(a), or other electronic means to the last-known address of the person from whom the payer receives or will receive money. The notice shall provide that the amount withheld may not exceed the maximum amount that is subject to garnishment under 15 USC 1673 (b) (2). If the department or its designee does not receive the money from the person notified, the court or county child support agency under § 59.53 (5) shall provide notice of the assignment to any other person from whom the payer receives or will receive money. Notice under this subsection may be a notice of the court, a copy of the executed assignment, or a copy of that part of the court order directing payment.
767.75(6)(b)
(b) If an employer who receives an assignment under this section or § 767.225 (1)(L) or 767.513 (3) fails to notify the department or its designee within 10 days after an employee is terminated or otherwise temporarily or permanently leaves employment, the employer may be proceeded against under the principal action under ch. 785 for contempt of court.
767.75(7)
(7) Receipt of more than one notice of assignment. A person who receives more than one notice of assignment under sub. (3h) may send all money withheld to the department or its designee, whichever is appropriate, in a combined payment, accompanied by any information the department or its designee requires.
767.75(3h)
(3h) Duties of person receiving assignment notice. A person who receives notice of assignment under this section or § 767.225 (1)(L) or 767.513 (3) or similar laws of another state shall withhold the amount specified in the notice from any money that person pays to the payer later than one week after receipt of notice of assignment. Within 5 days after the day the person pays money to the payer, the person shall send the amount withheld to the department or its designee or, in the case of an amount ordered withheld for health care expenses, to the appropriate health care insurer, provider, or plan. With each payment sent to the department or its designee, the person from whom the payer receives money shall report to the department or its designee the payer’s gross income or other gross amount from which the payment was withheld. Except as provided in sub. (3m), for each payment sent to the department or its designee, the person from whom the payer receives money shall receive an amount equal to the person’s necessary disbursements, not to exceed $3, which shall be deducted from the money to be paid to the payer. Section 241.09 does not apply to assignments under this section.
767.75(3m)
(3m) Assignment of unemployment compensation benefits. Benefits under ch. 108 may be assigned and withheld only in the manner provided in § 108.13 (4). Any order to withhold benefits under ch. 108 shall be for a fixed sum unless the court-ordered obligation on which the withholding order is based is expressed in the court order as a percentage of the payer’s income, in which case an order to withhold benefits under ch. 108 shall be for a percentage of benefits payable. When money is to be withheld from these benefits, no fee may be deducted from the amount withheld and no fine may be levied for failure to withhold the money.
767.75(7m)(a)
(a) In this subsection, “payroll period” has the meaning given in § 71.63 (5).
767.75(7m)(b)
(b) If after an assignment is in effect the payer’s employer changes its payroll period, or the payer changes employers and the new employer’s payroll period is different from the former employer’s payroll period, the county child support agency under § 59.53 (5) may, unless otherwise ordered by a judge, amend the withholding assignment or order so that all of the following apply:
767.75(7m)(c)
(c) The county child support agency shall provide notice of the amended withholding assignment or order by regular mail to the payer’s employer and to the payer.
767.75(6)(a)
(a) Except as provided in sub. (3m), if after receipt of notice of assignment the person from whom the payer receives money fails to withhold the money or send the money to the department or its designee or the appropriate health care insurer, provider, or plan as provided in this section or § 767.225 (1)(L) or 767.513 (3), the person may be proceeded against under the principal action under ch. 785 for contempt of court or may be proceeded against under ch. 778 and be required to forfeit not less than $50 nor more than an amount, if the amount exceeds $50, that is equal to 1% of the amount not withheld or sent.
767.75(6)(c)
(c) No employer may use an assignment under this section or § 767.225 (1)(L) or 767.513 (3) as a basis for the denial of employment to a person, the discharge of an employee, or any disciplinary action against an employee. An employer who denies employment or discharges or disciplines an employee in violation of this paragraph may be fined not more than $500 and may be required to make full restitution to the aggrieved person, including reinstatement and back pay. Except as provided in this paragraph, restitution shall be in accordance with § 973.20. An aggrieved person may apply to the district attorney or to the department for enforcement of this paragraph.
767.75(6m)
(6m) Conversion of certain support orders to fixed amount. A county child support agency under § 59.53 (5) may convert a support amount in an order for income withholding under this section that is expressed as a percentage of income to the equivalent sum certain amount for purposes of enforcing a child support order in another state under subch. V or VI of ch. 769. Nothing in this subsection authorizes a change, or may be construed to change, the support obligation specified in the underlying child support order.