Wage garnishment is a court-ordered or legally mandated deduction from employee wages to pay debts. Employers have no choice but to comply with valid garnishment orders. Common reasons include child support, tax debts, student loans, and creditor judgments.
Types of Garnishments
Child support orders are the most common garnishment. Tax levies allow government collection of unpaid taxes. Creditor garnishments result from court judgments. Student loan garnishments apply to defaulted federal loans. Each type has different calculation rules and limits.
Employer Obligations
Employers must calculate garnishment amounts correctly, withhold and remit payments timely, prioritize multiple garnishments appropriately, notify employees as required, and maintain records. Non-compliance can make employers liable for amounts they should have withheld.
Employee Protections
Laws limit how much can be garnished, protecting minimum income for living expenses. Protections vary by garnishment type and jurisdiction. Employers cannot terminate employees for a single garnishment. Multiple garnishments may provide less protection.