APA’s article, “A Better Understanding of Withholding From Lump Sum Payments,” is the front-page article in the February Child Support Report, a monthly e-newsletter published by the federal Office of Child Support Enforcement (OCSE).
In the article, APA describes the controversial actions by state child support enforcement agencies that led APA to seek an opinion letter from the U.S. Department of Labor’s Wage and Hour Division, explaining the extent to which the Consumer Credit Protection Act covers lump sum payments such as bonuses (the answer is nearly always). The information was later incorporated into DOL’s Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act’s Title III (CCPA).
Subsequent to the DOL’s opinion letter, APA joined a workgroup with OCSE and the National Council of State Child Support Directors to draft a model act for state legislatures to consider. Eventually, employers and child support agencies will have a much clearer understanding of how best to collect from lump sum payments.
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William Dunn, CPP, is Director of Government Relations for the APA.