Commercial Law - Attachment of Wages - Exemptions (Exempt Income Protection Act)

SB 31, the "Exempt Income Protection Act," changes Maryland's wage garnishment rules to better protect debtors. It increases the amount of wages exempt from attachment by setting the exemption at the greater of: (1) 75% of disposable wages plus Social Security/disability benefits, or (2) 150% of the federal poverty level for the debtor's household size multiplied by weeks earned. Employers must now notify debtors in writing about their exemptions, how the attachment amount was calculated, and how to contest it. The bill directly affects individuals with wage garnishments (judgment debtors) and their employers, effective July 1, 2025. It replaces existing exemption calculations under Maryland's Commercial Law (Sections 15-601.1 and 15-603).