eNotes: Workers’ Compensation – May 2023 – Maryland

SIGNIFICANT LEGISLATIVE UPDATES

Maryland Legislative Update

Maryland legislature passes a bill expanding the existing law to allow 25% of Workers’ Compensation benefits to be garnished to pay unpaid of past-due child support.

Maryland General Assembly 2023 Session
House Bill 800

Under current law, 25% of net recovery on a claim for personal injury is subject to execution on a judgment for unpaid or past-due child support. A 2017 case asked the Appellate Court of Maryland whether Worker’s Compensation benefits could be garnished to pay outstanding child support. The court did not decide the issue due to improper procedure, however, the Court foreshadowed its position and noted the “interrelated” provisions in both the Workers’ Compensation Act and Family Law Article. The Workers’ Compensation Act states that benefits may not be garnished except as provided in Title 10 of the Family Law Article. Title 10 states that determining “earnings” and “actual income” for the purpose of computing the amount of, and ordering unpaid or past-due child support, Workers’ Compensation benefits are included. Consequently, in March 2023, Maryland legislature passed a bill expanding existing law to allow 25% of Workers’ Compensation benefits to be garnished to pay unpaid or past-due child support.

Takeaway:

The Courts and Judicial Proceedings Article already permits 25% of net recovery on a claim for personal injury benefits to be garnished for unpaid or past-due child support. Therefore this bill does not change the existing provisions. Rather, expands what earnings are subject to garnishment. 25% of the net recovery on a claim for Workers’ Compensation benefits is subject to execution on a judgment for unpaid or past-due child support.

Questions about these new regulations can be directed to Ruth Jacobs at (443) 641-0573 or rjacobs@tthlaw.com.