SOURCE: Page 1, line 1; (08)MO133101.1. -->
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SOURCE: IC 22-2-6-2; (08)MO133101.1. -->
"SECTION 1. IC 22-2-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Any
assignment of the wages of an employee is valid only if all of the
following conditions are satisfied:
(1) The assignment is:
(A) in writing;
(B) signed by the employee personally;
(C) by its terms revocable at any time by the employee upon
written notice to the employer; and
(D) agreed to in writing by the employer.
(2) An executed copy of the assignment is delivered to the
employer within ten (10) days after its execution.
(3) The assignment is made for a purpose described in subsection
(b) A wage assignment under this section may be made for the
purpose of paying any of the following:
(1) Premium on a policy of insurance obtained for the employee
by the employer.
(2) Pledge or contribution of the employee to a charitable or
(3) Purchase price of bonds or securities, issued or guaranteed by
the United States.
(4) Purchase price of shares of stock, or fractional interests
therein, of the employing company, or of a company owning the
majority of the issued and outstanding stock of the employing
company, whether purchased from such company, in the open
market or otherwise. However, if such shares are to be purchased
on installments pursuant to a written purchase agreement, the
employee has the right under the purchase agreement at any time
before completing purchase of such shares to cancel said
agreement and to have repaid promptly the amount of all
installment payments which theretofore have been made.
(5) Dues to become owing by the employee to a labor
organization of which the employee is a member.
(6) Purchase price of merchandise sold by the employer to the
employee, at the written request of the employee.
(7) Amount of a loan made to the employee by the employer and
evidenced by a written instrument executed by the employee
subject to the amount limits set forth in section 4(c) of this
(8) Contributions, assessments, or dues of the employee to a
hospital service or a surgical or medical expense plan or to an
employees' association, trust, or plan existing for the purpose of
paying pensions or other benefits to said employee or to others
designated by the employee.
(9) Payment to any credit union, nonprofit organizations, or
associations of employees of such employer organized under any
law of this state or of the United States.
(10) Payment to any person or organization regulated under the
Uniform Consumer Credit Code (IC 24-4.5) for deposit or credit
to the employee's account by electronic transfer or as otherwise
designated by the employee.
(11) Premiums on policies of insurance and annuities purchased
by the employee on the employee's life.
(12) The purchase price of shares or fractional interest in shares
in one (1) or more mutual funds.
(13) A judgment owed by the employee if the payment:
(A) is made in accordance with an agreement between the
employee and the creditor; and
(B) is not a garnishment under IC 34-25-3.
(14) Notwithstanding the requirements of subsection (a), the
amount of an advance made to a driver employee by a
trucking business to the extent the amount exceeds the
amount that is substantiated with a receipt or other
appropriate documentary evidence that at least complies with
the requirements applicable to reimbursement or other
expense allowance arrangements under 26 U.S.C. 62(c). The
trucking business may not make a deduction unless, at the
time of the advance, the trucking business has provided notice
to the driver employee that the amount advanced may be
deducted from a subsequent paycheck to the extent that the
amount exceeds the amount substantiated under this
subdivision. A driver employee may revoke consent to the
deduction of amounts advanced by providing written notice
to the trucking business prior to the driver employee's receipt
of any future amounts advanced by the trucking business.
Advances may not be considered an overpayment of wages as
defined by IC 22-2-6-4(a). For purposes of this subsection, a
trucking business is a business engaged in the interstate or
intrastate transportation of property or household goods over
public highways in the state that either:
(A) holds a registration issued by the federal Motor
Carrier Safety Administration under 49 U.S.C. 13902; or
(B) is subject to the safety and certification requirements
of the department of state revenue under IC 8-2.1-24.".