SEC. 2. ASSIGNMENT OF EARNINGS DEFINED. 
Section 302 of the Consumer Credit Protection Act 
(15 U.S.C. 1672) is amended by adding at the end the 
following new subsection: 
‘‘(d) ASSIGNMENT.—The term ‘assignment’— 
‘‘(1) means a contractual agreement that con-
stitutes or contains an assignment (as described 
under section 444.2(a)(3) of title 16, Code of Fed-
eral Regulations), including an assignment that is 
revocable at the will of the individual; and 
‘‘(2) does not include includes an assignment 
described in paragraph (ii) or (iii) of section 
444.2(a)(3) of title 16, Code of Federal Regula-
tions.’’. 
SEC. 3. ADJUSTMENT TO RESTRICTIONS ON GARNISHMENT. 
Section 303(a) of the Consumer Credit Protection 
Act (15 U.S.C. 1673) is amended— 
(1) by striking paragraph (1); 
(2) by striking ‘‘whichever is less.’’; 
(3) by striking ‘‘garnishment may not exceed’’ 
and inserting ‘‘garnishment or assignment may not 
exceed the lesser of— 
‘‘(1) for an individual earning— 
‘‘(A) less than or equal to $1,200 (as ad-
justed for inflation every 3 years, by notice, to 
reflect the change in the Consumer Price Index 
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for All Urban Consumers published by the Bu-
reau of Labor Statistics) a workweek, 10 per-
cent of the individual’s disposable earnings for 
that workweek; or 
‘‘(B) more than $1,200 (as adjusted for in-
flation every 3 years, by notice, to reflect the 
change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of 
Labor Statistics) a workweek, 15 percent of the 
individual’s disposable earnings for that work-
week; or’’; and 
(4) in paragraph (2)— 
(A) by striking ‘‘thirty’’ and inserting 
‘‘80’’; and 
(B) by striking the comma at the end and 
inserting a period. 
SEC. 4. RESTRICTION ON ADVERSE EMPLOYMENT ACTION 
BECAUSE OF GARNISHMENT. 
(a) IN GENERAL.—Section 304 of the Consumer 
Credit Protection Act (15 U.S.C. 1674) is amended— 
(1) by amending the section heading to read as 
follows: ‘‘RESTRICTION ON ADVERSE EMPLOY-
MENT ACTION’’; and 
(2) by amending subsection (a) to read as fol-
lows: 
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‘‘(a) IN GENERAL.—No employer may take any ad-
verse employment action against an employee because the 
employee’s earnings have been subjected to garnishment 
or assignment.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents in title III of the Consumer Credit Protection 
Act (15 U.S.C. 1671 et seq.) is amended by amending the 
item relating to section 304 to read as follows: 
‘‘304. Restriction on adverse employment action.’’. 
SEC. 5. STATE LAW WITH RESPECT TO ASSIGNMENTS. 
(a) EXEMPTION
FOR STATE-REGULATED ASSIGN-
MENTS.— 
(1) IN
GENERAL.—Section 305 of the Con-
sumer Credit Protection Act (15 U.S.C. 1675) is 
amended— 
(A) in the section heading, by inserting 
‘‘OR
ASSIGNMENTS’’ 
after 
‘‘GARNISH-
MENTS’’; 
(B) by inserting ‘‘or assignments’’ after 
‘‘garnishments’’; and 
(C) by inserting ‘‘or assignment’’ after 
‘‘garnishment’’. 
(2) TABLE OF CONTENTS AMENDMENT.—The 
table of contents in title III of the Consumer Credit 
Protection Act (15 U.S.C. 1671 et seq.) is amended 
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by amending the item relating to section 305 to read 
as follows: 
‘‘305. Exemption for State-regulated garnishments or assignments.’’. 
(b) EFFECT ON STATE LAWS.—Section 307 of such 
Act (15 U.S.C. 1676) is amended— 
(1) by striking ‘‘State’’ and inserting ‘‘State— 
’’; 
(2) in paragraph (1), by striking ‘‘garnish-
ments’’ each place such term appears and inserting 
‘‘garnishments or assignments’’; and 
(3) in paragraph (2), by striking ‘‘garnish-
ment’’ and inserting ‘‘garnishment or assignment’’. 
SEC. 6. EMPLOYER LIABILITY FOR FAILURE TO GARNISH. 
(a) IN GENERAL.—Title III of the Consumer Credit 
Protection Act (15 U.S.C. 1671 et seq.) is amended by 
adding at the end the following new section: 
‘‘§ 308. Delay of garnishment; employer liability 
‘‘(a) DELAY
OF GARNISHMENT.—A garnishment 
order directed at an employer with fewer than 50 employ-
ees may not require such employer to garnish the earnings 
of the individual who is the subject of the order earlier 
than the later of the following: 
‘‘(1) 15 business days after such employer re-
ceives the order. 
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‘‘(2) 5 business days after the date on which 
the individual is regularly scheduled to receive earn-
ings. 
‘‘(3) As would otherwise be required by State 
law or regulation. 
‘‘(b) EMPLOYER
LIABILITY.—No employer with 
fewer than 50 employees shall be liable for failing to re-
spond to a garnishment order unless such employer— 
‘‘(1) has been given written notice that specifies 
the nature of the employer’s failure to comply with 
the requirements of this title; and 
‘‘(2) does not correct the failure described in 
paragraph (1) within 15 days of receipt of such no-
tice.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents in title III of the Consumer Credit Protection 
Act (15 U.S.C. 1671 et seq.) is amended by adding at 
the end the following new item: 
‘‘308. Delay of garnishment; employer liability.’’. 
SEC. 7. EXEMPTION FOR AMOUNTS IN DEPOSIT ACCOUNTS. 
(a) IN GENERAL.—Of the aggregate amount of funds 
of an individual in deposit accounts, an amount equal to 
the poverty guideline applicable to a 1-person household 
contained in the income poverty guidelines prescribed by 
the Office of Management and Budget (as such amount 
is annually adjusted by the Secretary of Health and 
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Human Services) shall be exempt and immune from at-
tachment or seizure with respect to any judgment related 
to a debt. 
(b) INCLUSION OF ACCOUNTS.—In this subsection, 
the term ‘‘deposit accounts’’ shall include any account, as 
such term is defined in section 903 of the Electronic Fund 
Transfer Act (15 U.S.C. 1693a). 
(c) RULEMAKING.—The Bureau of Consumer Finan-
cial Protection shall issue such regulations as may be nec-
essary to carry out this section. 
Æ 
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