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 commissionpayments by insurer; applicability of wage assignment provisions
Sec. 1. (a) Any person, company, corporation, limited liabilitycompany, or association loaning money directly or indirectly to anyemployee or wage earner, except the employer of the employee, uponthe security of or in consideration of any assignment of the wages orsalary of such employee or wage earner shall be defined and held tobe a wage broker and subject to the provisions of this chapter.
(b) A direct deposit made by electronic funds transfer or othermethod to an employee's account in a financial institution as agreedto by the employer and the employee does not constitute anassignment 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 payabledirectly or indirectly by an insurer (as defined in IC 27-1-2-3) doesnot 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 anyemployee or wage earner to any wage broker or any other person forhis benefit shall be valid or enforceable, nor shall any employer ordebtor recognize or honor such assignment for any purpose whatever,unless it be for a fixed and definite part of the wages or salary earnedor to be earned during a period not exceeding thirty (30) daysimmediately following the date of the assignment. Any assignmentwhich shall be post-dated or dated on any other date than that of itsactual execution shall be void and of no effect for any purposewhatever.
(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 ascompensation or interest, or in any other manner, directly orindirectly, any compensation or interest for the use of moneyadvanced or loaned by him to any employee or wage earner in excessof the rate of eight per cent (8%) per year, and said compensation orrate of interest shall be computed upon the amount actually advancedto and received by the borrower, and no commission, compensationor charges in addition to the interest above named shall be asked,demanded or received by said wage broker or any other person formaking 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 isliving with the person's spouse residing in Indiana to any wagebroker shall be valid or enforceable without the consent of thespouse, evidenced by the spouse's signature to said assignment,executed and acknowledged before a notary public or other officerempowered to take acknowledgments of conveyances. No wagebroker or person connected with the married person directly orindirectly shall be authorized to take any such acknowledgment.
(b) This chapter shall not apply to any deduction from the wagesof any employee of such employer, which deduction is made for thepurpose of applying the same to any account of such employee in anycredit union or any nonprofit organization of employees of suchemployer organized under any law of this state or of the UnitedStates.
(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.) Asamended 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 enforceableunless notice in writing of the same, accompanied by a copy of theassignment, 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 thewages of any employee or wage earner shall be held and consideredto be a loan in the sum and of the amount actually paid to andreceived 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 aClass 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 wagebroker or any other person in violation of any of the provisions ofthis chapter shall be null and void and of no effect; and uponconviction, any and all moneys advanced or loaned by said wagebroker in violation of any of the provisions of this chapter and allinterest thereon shall be forfeited.
(Formerly: Acts 1909, c.34, s.8.) As amended by P.L.144-1986,SEC.12.