Wage garnishment laws, earnings protection, help and advice
Wage Garnishments

What is Wage Garnishment


Wage garnishment is the equitable or legal procedure employers can use to withhold a funds from employees earnings. This process could be use if if the individuals payments need to be withheld to fulfil a debt.


The largest proportion of garnishments are undertaken by court orders and can also include levies for unpaid tax instructed by STATE or IRS collection agencies.


Other garnishment examples include administrative claims by Federal agencies for issues concerning non-tax debt that are owed to the Federal government.


The process of wage garnishments does not include any agreement setup by the employee and employer to set aside a set amount of funds to pay off a personal creditor and creditors.


Specific wage garnishment law?


Although each state has it's own interpretation of the wage garnishments laws they all are governed by the Federal wage garnishment law that goes by the title of Consumer Credit Protection Act or CCPA. This law limits the total amount of funds an employer can garnish from an employee and was setup to protect the employee from possible job loss if the employer would like to garnish more the one debt or a higher sum.


This particular law is administered by a division of the Department of Labors Employment Standards Administration called: "The wage and Hour division". This garnishment law doe not cover the all questions and issues associated with garnishment and questions such as, who should take priority when it comes to payments are dealt with elsewhere usually by the agency or court that initiates the garnishment.


Who does the law apply too?


The main aim of the law is to protect all employees, anyone who receives any form of personal earnings including: commissions, bonuses, wages pensions and retirement policies and any other personal income. Some areas that are not covered by this law include (in some cases) tips from service work from customers and this is generally not considered as income under this garnishment law.


In what States does the law apply


This law applies to all 50 US states and the District of Columbia. It also includes all US possessions and territories.


Protection against discharge rules


An employer is prohibited from firing any employee who's wages are subject to an individual garnishment for a debt, no matter how many proceeding or levies are brought against that debt to be collected. The law does not protect the employee against discharge if the employee has more than one garnishment against two or more debt.


How much can your employer take?


The total amount of funds that can be garnished from your wages is based on the employers disposable income after taking into account deductions that are legally allowed such as: state or federal tax requirements,  state unemployment insurance and social security commitments and private employee retirement schemes that are required by law.

Information on the Law of Garnishment