CHAPTER 7. ASSIGNMENT OF WAGES
IC 22-2-7
Chapter 7. Assignment of Wages
IC 22-2-7-1
Wage broker defined; employee direct deposit or commission
payments by insurer; applicability of wage assignment provisions
Sec. 1. (a) Any person, company, corporation, limited liability
company, or association loaning money directly or indirectly to any
employee or wage earner, except the employer of the employee, upon
the security of or in consideration of any assignment of the wages or
salary of such employee or wage earner shall be defined and held to
be a wage broker and subject to the provisions of this chapter.
(b) A direct deposit made by electronic funds transfer or other
method to an employee's account in a financial institution as agreed
to by the employer and the employee does not constitute an
assignment of wages subject to this chapter.
(c) An assignment or pledge of, or a grant of a security interest in,
a contractual right of a person to receive commissions payable
directly or indirectly by an insurer (as defined in IC 27-1-2-3) does
not constitute an assignment of wages subject to this chapter.
(Formerly: Acts 1909, c.34, s.1.) As amended by P.L.144-1986,
SEC.11; P.L.143-1988, SEC.5; P.L.216-1989, SEC.3; P.L.8-1993,
SEC.275; P.L.116-1994, SEC.1.
IC 22-2-7-2
Amount of assignment; post-dating
Sec. 2. No assignment of his or her wages or salary by any
employee or wage earner to any wage broker or any other person for
his benefit shall be valid or enforceable, nor shall any employer or
debtor recognize or honor such assignment for any purpose whatever,
unless it be for a fixed and definite part of the wages or salary earned
or to be earned during a period not exceeding thirty (30) days
immediately following the date of the assignment. Any assignment
which shall be post-dated or dated on any other date than that of its
actual execution shall be void and of no effect for any purpose
whatever.
(Formerly: Acts 1909, c.34, s.2.)
IC 22-2-7-3
Interest; rates and charges
Sec. 3. No wage broker shall ask, demand or receive, either as
compensation or interest, or in any other manner, directly or
indirectly, any compensation or interest for the use of money
advanced or loaned by him to any employee or wage earner in excess
of the rate of eight per cent (8%) per year, and said compensation or
rate of interest shall be computed upon the amount actually advanced
to and received by the borrower, and no commission, compensation
or charges in addition to the interest above named shall be asked,
demanded or received by said wage broker or any other person for
making or securing said advancement or loan.
(Formerly: Acts 1909, c.34, s.3.)
IC 22-2-7-4
Married persons; consent; exemptions
Sec. 4. (a) No assignment of wages by a married person who is
living with the person's spouse residing in Indiana to any wage
broker shall be valid or enforceable without the consent of the
spouse, evidenced by the spouse's signature to said assignment,
executed and acknowledged before a notary public or other officer
empowered to take acknowledgments of conveyances. No wage
broker or person connected with the married person directly or
indirectly shall be authorized to take any such acknowledgment.
(b) This chapter shall not apply to any deduction from the wages
of any employee of such employer, which deduction is made for the
purpose of applying the same to any account of such employee in any
credit union or any nonprofit organization of employees of such
employer organized under any law of this state or of the United
States.
(Formerly: Acts 1909, c.34, s.4; Acts 1945, c.250, s.1; Acts 1955,
c.278, s.1; Acts 1957, c.303, s.1; Acts 1975, P.L.111, SEC.2.) As
amended by P.L.143-1988, SEC.6.
IC 22-2-7-5
Notice to employer
Sec. 5. No assignment of wages shall be valid or enforceable
unless notice in writing of the same, accompanied by a copy of the
assignment, shall be given to the employer or debtor within ten (10)
days from the date of its execution.
(Formerly: Acts 1909, c.34, s.5.) As amended by P.L.143-1988,
SEC.7.
IC 22-2-7-6
Amount of loan
Sec. 6. Every purchase of a wage broker of an assignment of the
wages of any employee or wage earner shall be held and considered
to be a loan in the sum and of the amount actually paid to and
received by such employee or wage earner.
(Formerly: Acts 1909, c.34, s.6.) As amended by P.L.143-1988,
SEC.8.
IC 22-2-7-7
Violations
Sec. 7. A person who recklessly violates this chapter commits a
Class B misdemeanor.
(Formerly: Acts 1909, c.34, s.7.) As amended by Acts 1978, P.L.2,
SEC.2206.
IC 22-2-7-8
Forfeitures
Sec. 8. Any note, bill, or other evidence of indebtedness and any
assignment of wages or salary given to or received by any wage
broker or any other person in violation of any of the provisions of
this chapter shall be null and void and of no effect; and upon
conviction, any and all moneys advanced or loaned by said wage
broker in violation of any of the provisions of this chapter and all
interest thereon shall be forfeited.
(Formerly: Acts 1909, c.34, s.8.) As amended by P.L.144-1986,
SEC.12.