A Few Things in Life Are Certain: Death, Taxes, and Child Support
House Bill 800/Senate Bill 71, signed into law by Governor Moore with an effective date of October 1, 2023, creates an amendment to Maryland Code, Ann., Courts & Judicial Proceedings, § 11-504 which extends the garnishment provision to cover workers’ compensation benefits. Maryland Code, Ann., Courts & Judicial Proceedings, § 11-504 has long since allowed “twenty-five percent of the net recovery by the debtor is subject to execution for a child support arrearage for” personal injury claims. Under the newly-enacted statute, twenty-five percent (25%) of the net recovery of workers’ compensation benefits “is subject to execution on a judgment for a child support arrearage.” The new law tacks workers’ compensation claims onto Maryland Code, Ann., Courts & Judicial Proceedings, § 11-504(i)(2) which previously allowed for twenty-five percent of the net recovery in a personal injury action to go towards child support obligations.
In the case of R.K. Grounds Care v. Wilson, 235 Md. App. 20, 27-29 (2017) (hereinafter “R.K. Grounds”), the question of whether workers’ compensation benefits could be garnished to pay child support arrearages was raised. In R.K. Grounds, the Circuit Court determined that under Maryland Code, Ann., Courts & Judicial Proceedings, § 11-504(i), Claimant Wilson was entitled to 75% of the settlement reached and that the remaining 25% was subject to garnishment. Ultimately, the Appellate Court of Maryland determined that it did not have subject matter jurisdiction over the question because the question was raised before Maryland’s Workers’ Compensation Commission; but not before the circuit court, which would have had jurisdiction over the potential garnishment. In essence, the revision to Maryland Code, Ann., Courts & Judicial Proceedings, § 11-504, through House Bill 800/Senate Bill 71, codifies the Circuit Court’s decision in R.K. Grounds.
House Bill 800/Senate Bill 71 stepped in to fill the gap created by R.K. Grounds, and provides for a statutory amendment whereby twenty-five percent of child support arrearages can be garnished before a claimant in a workers’ compensation case receives any proceeds. The amendment to Maryland Code, Ann., Courts & Judicial Proceedings, § 11-504(i)(2) is a clear indication from the Maryland General Assembly that child support obligations are a priority.
Stephen Craig, Jr.