How Wage Garnishment Works
As long as the person who owes you money is currently employed and receiving a paycheck, a judge can order that person’s employer to withhold up to 25 percent of his or her paycheck and send the money to you. If the wage garnishment relates to child support and alimony, the withholding can be as much as 50 percent. Under special circumstances, the withholding for child support and alimony can be as much as 65 percent, if the worker is not currently supporting another spouse and if he or she is delinquent by at least one year.
Will The Person Be Fired Because of Wage Garnishment?
Title III of the Consumer Credit Protection Act protects employees from being fired as a result of wage garnishment, as long as it only happens once. However, if a second wage garnishment is put in place, the employee has no protection against being discharged.
If an employer violates the rules and provisions of Title III, he or she may be subject to fines and even imprisonment. If Title III violation has occurred, the discharged employee may be entitled to reinstatement and payment of back wages.
Wage Garnishment Exceptions
If the employee is receiving less that $154.50 per week, then no wage garnishment can take place. You should consult www.dol.gov/esa/whd/garnishment/ for exact amounts available for wage garnishment.
There are ways an employee can circumvent the wage garnishment process. Two ways are to quit their job or file for bankruptcy. If this happens, you really have no recourse, so you might want to try other collection options first. The employee can also contest the garnishment with the court, stating that they need the money for basic support.
Remember that under most circumstances, wage garnishment is only possible for up to 25 percent of the debtor’s paycheck. So, if another creditor has already started wage garnishment, you might be out of luck, unless the other garnishment is less than 25 percent.
What if the debtor is an independent contractor or otherwise self employed? Well, you’re basically out of luck, since they don’t have an employer who will enforce a wage garnishment. You may have to take them to small claims court or name them as defendant in a lawsuit.
Wages, salaries, commissions, and bonuses are all subject to garnishment, but Social Security benefits are not. And yes, the IRS can use wage garnishment to collect on back taxes, and federal agencies can collect non-tax debts owed to the federal government.
Wage Garnishment and Credit Scores
Personal credit scores take into consideration the good as well as the bad, including judgments and court orders. Your credit report includes a section called public records. If a wage garnishment judgment appears, your credit score will suffer.
Correct Pronunciation and Common Spelling Errors
According to Webster, the verb “to garnish” cannot apply to the withholding of wages by court order. Instead, one should use the verb “to garnishee,” unless they are referring to the placement of a sprig of parsley on a dinner plate.
By Aaron McCullough