Sponsors (6)
The bill protects workers' take-home pay by prohibiting wage garnishment for medical debt and creates national consistency, but shifts collection pressure and costs onto providers, creditors, employers, and may create legal and administrative disruption—especially in U.S. territories.
Low- and middle-income workers (including uninsured people) are protected from having wages withheld for medical debt, so household income for rent, food, and other necessities is preserved.
Creates a uniform national rule barring federal and state courts and agencies from issuing wage-garnishment orders for medical debt, reducing inconsistent state-by-state approaches.
Clarifies legal definitions (e.g., 'garnishment' and 'medical debt'), reducing uncertainty for workers, employers, and courts about what obligations are protected.
Creditors and collectors may shift away from wage garnishment toward liens, lawsuits, or other collection tactics, which could increase legal exposure and out-of-pocket costs for patients (especially the chronically ill and uninsured).
Healthcare providers and creditors lose a commonly used collection tool (wage garnishment), which could increase unpaid balances and collection costs for providers and raise pressure on provider finances or prices.
Employers and workers in U.S. territories (Puerto Rico, U.S. Virgin Islands) may face administrative burdens and legal transition risks—including changes to judicial-review procedures—during and after the law's implementation, creating short-term uncertainty.
Based on analysis of 2 sections of legislative text.
Prohibits garnishing wages to collect medical debt and bars courts/agencies from issuing or enforcing such orders; effective six months after enactment.
Official title: To amend the Fair Labor Standards Act of 1938 to prohibit the garnishment of wages in relation to medical debt, and for other purposes.
Introduced September 14, 2026 by Robert C. Scott · Last progress September 14, 2026
Prohibits garnishing an employee’s wages to collect medical debt and stops courts and government agencies from issuing or enforcing orders that would do so. The bill adds a new prohibition to the Fair Labor Standards Act, defines “garnishment” and “medical debt,” and becomes effective six months after enactment. Also repeals a cross-reference provision for judicial review in Puerto Rico and the Virgin Islands. The change focuses narrowly on preventing wage withholding for medical bills while leaving other collection remedies intact.