Although the laws vary from state to state, garnishment is a tool used by creditors to satisfy the indebtedness of an employee.
Garnishments are a court order and should never be ignored as the employer can be held responsible for employee debts in some states if they fail to comply with the order of the courts. For this reason, employers need to be aware of the standard methods for dealing with a garnishment and what steps to take should they be served with garnishment documents.
Answer the Garnishment
When a garnishment is served upon an employer, the court usually provides paperwork that the employer must complete and return to the court as an answer to the court order. Even if the employee no longer works for the company, an employer must file an answer with the court and explain why the company is not complying with the garnishment. In some states, employers who ignore the garnishment become responsible for the employee’s debt by default.
Do Not Fire the Employee
Unless the company has a written policy stating that wage garnishment is a terminable offense, employers should not fire an employee if they are served with a garnishment for the first time. The Consumer Protection Act (CCPA) prohibits the firing of an employee due to one single garnishment, and some states offer additional protections to citizens in terms of wage garnishment. CCPA protection may not extend to an employee with garnishments for multiple debts.
Types of Indebtedness and Garnishments
In some cases, the garnishment may be a non-continuing garnishment, which means that the garnishment is paid in one single payment regardless of the amount. Continuing garnishments remain in effect until the garnishment is paid in full and may require multiple payments. Knowing the type of indebtedness is important because the type of debt owed determines what percentage of disposable earnings are allowed to be garnished. This may also vary by state.
States That Do Not Allow Garnishment
Pennsylvania, South Carolina, North Carolina and Texas do not allow garnishment for creditor debts. However, all states do allow garnishment for tax liens, student loan defaults, child support, and in some cases, alimony.
Many employers are unaware of the laws surrounding wage garnishments, especially the fact that ignoring a garnishment order from a court could make them liable for the employee’s debt. Therefore, it is important to understand the laws in the states where the business operates to be sure that the company complies with garnishment court orders.
Does the garnishment have to be court ordered in the state of Maryland?
Before anyone can garnish wages, they must obtain a final judgment or order against the debtor in court.
source: MDcourts.gov.
I received a garnishment letter and I want to deal with it. I would like to clear it off my credit report. In Georgia do you have to go to court or can it be handled out of court?
You can appeal the garnishment and then set up a repayment plan for the loan. Judgment for the wage garnishment will appear on your credit report for seven years. Then you will have to rebuild your credit score again by showing good financial discipline, starting with small loans.
Does it have to be court ordered in the state of IL? I never was in court and never got notice. It happened.
As an employee you should have received a “Wage Deduction Notice” by mail. Read more at: http://www.illinoisprobono.org
I am being garnished in the state of Ohio from a former landlord. I never received any notification from my employer that I was going to be garnished until I saw the garnisment on my paycheck. What can I do about this?
The garnishment has normally been ordered by a court so your employer must execute it. You can ask your employer for more information and if you feel it is impossible for you to live on a lower budget you can apply for exemption at the court.
What if the employee is a freelancer that works with your company pretty consistently? Do you still have to follow the order to garnish wages? Thank you.
If you received a court order you should respect it. It is not up to you to judge if it is applicable or not and you could get in trouble yourself if you ignore it.