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Garnishment

A wage garnishment occurs where a portion of the wages of an employee are withheld for the payment of an outstanding debt. More often than not, the garnishment is a result of a court order.

The Consumer Credit Protection Act-the law governing garnishments-limits the amount that may be deducted in any workweek or pay period to the lesser of 25 percent of the person's disposable earnings, or the amount of the employee's disposable income that is greater than 30 times the federal minimum wage.

EXAMPLE: "Disposable income" is your paycheck minus taxes and minimum living expenses.

Can I be fired if my employer receives a garnishment notice?

Federal law prohibits you being let go for any one debt. If you have multiple notices, however, you lose this protection.

CAUTION: It is a criminal offense to fire an employee whose wages have been attached for child support.

My employee owes child support and alimony. Are the rules regarding garnishment different?

Yes. An employee can have up to 60 percent of their disposable income deducted if he is not supporting a second spouse or child. If he is supporting a second household, the law allows a 50 percent deduction. Payments that are in arrears for more than 12 weeks can also result in an additional 5 percent being subject to garnishment.

Child support payments also take priority over other garnishment deductions.

Are there any other exceptions?

Yes. There are no restrictions on the amount that can be deducted or garnished by order of a bankruptcy court or debts owed for federal or state taxes.