Section 137-A. Exemption of earnings of recipients from assignment, income execution and installment payment order  


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  • 1.    All  wages,  salary,
      commissions  or  other  compensation paid or payable by an employer to a
      person while he is in receipt of public assistance or care supplementary
      to his income pursuant to the provisions of titles  three,  four,  five,
      six and ten of article five of this chapter, or while he would otherwise
      need  such  assistance  or care, shall be exempt from assignment, income
      execution or from an installment payment order under the  laws  of  this
      state but only so long as such public assistance or care, shall continue
      or  would  be  needed if the assignment, income execution or installment
      payment order were enforced. The claim of  the  creditor  shall  in  all
      other respects remain unaffected. Any employer who shall withhold or pay
      over  to  a  person  presenting  an income execution installment payment
      order or assignment, any portion of the earnings of such a recipient  of
      public  assistance or care, after receiving notification in writing from
      a social  services  official  that  the  employee  is  receiving  public
      assistance or care, or that he would become in need of public assistance
      or care if the assignment, income execution or installment payment order
      were  enforced,  shall  be liable in an action by such recipient for the
      amount so paid or withheld contrary to the provisions of this section. A
      social services official sending such notification to an employer  shall
      be  required  to  notify the employer, in writing, of the termination of
      such receipt and need for public assistance and  care  of  the  employee
      involved  when  this  shall  occur.  Upon  receipt  of  such  notice  of
      termination the employer may commence or resume, as  the  case  may  be,
      payment  and  withholding  under  any  assignment,  income  execution or
      installment payment order whose effectiveness was postponed or suspended
      by this section.
        2. As used in this section, "public assistance and care" shall include
      federal supplemental security income benefits  paid  pursuant  to  title
      sixteen of the federal social security act and additional state payments
      paid pursuant to title six of article five of this chapter.