H.R. 10373: Protecting Workers' Wages from Medical Debt Act

This bill would make it illegal to take an employee’s wages through garnishment to pay off medical debt. In practical terms, if someone owes money for medical care, a court or government agency could not require their employer to withhold part of their paycheck to collect that debt.

What counts as medical debt

The bill defines medical debt as money owed for items or services provided by a health care facility or health care provider. That would cover debts from medical treatment, hospital bills, and similar health care charges.

What the bill changes

• It adds a new rule to the Fair Labor Standards Act banning wage garnishment for medical debt.
• It says no federal or state court, and no state agency or official, may issue or enforce an order that would garnish wages for this purpose.
• It repeals an existing section of the Fair Labor Standards Act that is being replaced by the new provision.

When it would take effect

The change would start 6 months after the bill becomes law.

Relevant Companies

None found