Exemption of earnings of recipients from assignment, income execution and installment payment order

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