Okla. Stat. tit. 40, § 40-3-511

LEVY UPON EARNINGS OF TAX DEBTOR.

Oklahoma Statutes - Title 40. Labor Page 149

A. If any tax debtor shall fail to pay his or her indebtedness

to the Oklahoma Employment Security Commission after the tax debtor

has been notified of the amount due and demand for payment has been

made, it shall be lawful for the Oklahoma Employment Security

Commission to collect the amount owed by levy upon any earnings or

contract proceeds of the tax debtor.

B. To levy upon the earnings of a tax debtor or contract

proceeds owed to a tax debtor, the Oklahoma Employment Security

Commission must serve a Notice of Levy on the employer who employs

the tax debtor or the contracting entity that owes money under

contract to the tax debtor, along with the tax warrants covering all

quarters in which the tax debtor owes unemployment taxes, interest,

penalties, fees or surcharge. The levy will have the same priority,

and be subject to the same exceptions, as a continuing earnings

garnishment provided for in Section 1173.4 of Title 12 of the

Oklahoma Statutes. The following procedures will apply to a Notice

of Levy served on an employer or contracting entity:

1. The employer or contracting entity shall answer the Notice

of Levy on a form provided by the Commission. The employer or

contracting entity shall follow the procedure for answering a

continuing earnings garnishment as set out in subsection F of

Section 1173.4 of Title 12 of the Oklahoma Statutes;

2. The Notice of Levy shall be a lien on the debtor's property

in the same manner as provided for in subsection G of Section 1173.4

of Title 12 of the Oklahoma Statutes. The Notice of Levy shall also

be subject to the procedures and time limits set out in subsections

H, I, J and K of Section 1173.4 of Title 12 of the Oklahoma

Statutes, except that when a document is required to be filed with

the clerk of the court, the document will instead be filed with the

Commission as directed on the forms provided;

3. The employer or contracting entity shall deliver all funds

subject to the levy up to the amount of indebtedness indicated on

the tax warrants plus accrued interest pursuant to subsection A of

Section 3-301 of this title and any fees for service of process to

the representative of the Commission indicated on the Notice of

Levy. The delivery of this money shall occur within ten (10) days

of the date the earnings or contract proceeds are due to be paid to

the tax debtor;

4. Any employer that fails or refuses to surrender money or

rights to money belonging to its employee in the employer's

possession, or that fails or refuses to make the appropriate

deduction from wages pursuant to a levy provided for by this statute

upon being served with a Notice of Levy and supporting warrant of

levy and lien of the Commission, shall be liable to the Commission

in a sum equal to the amount of money, rights to money, or wage

deduction not so surrendered, but not exceeding the amount of the

debtor's indebtedness for the collection of which the levy has been

Oklahoma Statutes - Title 40. Labor Page 150

made, together with accrued interest and penalty pursuant to Section

3-301 of this title, and the cost of service of the Notice of Levy.

Any amount recovered in this manner shall be credited against the

liability of the debtor for which the levy was made; and

5. Any employer in possession of money or rights to money

subject to levy upon which a levy has been made that surrenders the

money or rights to money to the Commission shall be discharged from

any obligation or liability to the debtor and any other person or

entity with respect to such money or rights to money arising from

the surrender or payment.

C. Service of the Notice of Levy and tax warrants shall be made

on the employer or contracting entity in the same manner as provided

in Section 2004 of Title 12 of the Oklahoma Statutes for service of

process in civil actions.
ged from

any obligation or liability to the debtor and any other person or

entity with respect to such money or rights to money arising from

the surrender or payment.

C. Service of the Notice of Levy and tax warrants shall be made

on the employer or contracting entity in the same manner as provided

in Section 2004 of Title 12 of the Oklahoma Statutes for service of

process in civil actions.

D. The sheriff's department that serves the Notice of Levy on

the employer or contracting entity shall be entitled to a service

fee of Fifty Dollars ($50.00) that is to be paid by the Oklahoma

Employment Security Commission and added to the tax debtor's

indebtedness as a fee in the latest calendar quarter for which the

tax debtor has any type of indebtedness.

E. Claims for Exemption and any other matter related to the

levy shall be filed with the Assessment Board of the Oklahoma

Employment Security Commission. An Order of Exemption may relate

back no more than thirty (30) days before the filing of the Claim

for Exemption and shall extend no further than the expiration date

or termination of the levy. Appeal from the Assessment Board shall

be governed by the appeal procedures set out in Part 4 of Article

III of the Employment Security Act of 1980, and the Administrative

Rules of the Oklahoma Employment Security Commission pertaining

thereto.