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House rejects bill raising employer garnishment fees after debate on fairness
Summary
HB163, which would have raised employer garnishment processing fees and allowed limited employer deductions, failed 33–36 after lawmakers debated whether the change would unfairly burden employees or fairly reimburse employers.
The Utah House considered and rejected House Bill 163 on Feb. 15. The bill, sponsored by Representative Steven R. Mascaro, would have increased statutory garnishment processing fees (raising the one‑time fee from $10 to $25 and the continuing garnishment fee from $25 to $35) and allowed employers to deduct a processing fee of up to $10 per payment (amended in committee to cap employer deductions at $20 per month).
Mascaro framed the bill as relief for small businesses that bear administrative burdens when courts order wage garnishments: "The employer may deduct, not will, but may deduct a processing fee of up to $10 from an employee each time a payment is made...that continuing amount may not exceed $20 per month," he said, adding the updated fees still may not fully cover employers' costs.
Representative Snow and others posed fairness questions about employers deducting fees from employees' limited garnished wages and whether the proposed fees would effectively penalize employees. Mascaro and supporters argued the change was necessary to partially reimburse businesses for collection costs and paperwork.
After debate, the House voted and the bill failed 33–36. The bill was filed and will not advance in this session.
