Types of Wages That Can Be Garnished
Mostly all kinds of incomes can be garnished which includes wages, surveys, commissions, bonuses and other income. Pension and retirement funds can also be garnished.
Wage Garnishment for Child and Spouse Support
You can have 60% of your wages garnished to support a child or a spouse in case you are not supporting another child or spouse currently. If you are then only 50% of your wages can be garnished with an additional 5% if you owe more than 12 weeks of back payments.
State Law on Wage Garnishment
Many states have their own laws that separate wage punishment. In places where the state law is different than the federal law regarding wage garnishment then the amount which is low needs to be applied according to the law. For example if the state law states that only nine percent of your disposable income can be garnished then that law will be applied instead of the federal law which allows for a higher percentage of wage garnishment.
Wage Garnishment for Federal Debts
Federal agencies and the collection agencies collecting on the behalf of the federal agencies are allowed to get a judgment for up to 15% of garnishment of your disposable income to cover nontax debts that you owe to the federal government. In addition to this the Department of education and its collection agencies can garnish up to 10% of your disposable income to pay back any federal student loan that you have defaulted on. State garnishment law does not apply to federally owned debts.
Wage Garnishment and Your Job
Wage garnishment is controlled by federal known as the consumer credit protection act. This law states that you cannot be terminated in your employment due to the reason of a single wage garnishment. However it does not prevent the employer from terminating your employment if you have two or more punishments enacted separately.
If you believe that you have been unfairly discharged because of the wage garnishment you can contact the Department of Labor. You may be able to have your job reinstalled at the Department determines that your employer knowingly violated your rights according to the federal law. You may be also allowed to pursue civil and criminal charges against employer.
Examples of Wage Garnishment
If you’re disposable income is $196.5 per week then a creditor cannot get a wage garnishment judgment against you.
If your disposable income is $262 per week then you can have $65.5 deducted as wage garnishment.
If your disposable income is $400 per week any can be garnished for $100.
Another example to consider is when you already have an existing wage garnishment and you are sued for another one. If your disposable income is $500 per week and you already have wage punishments for the amount of $250 for child support or spouse support than another creditor will not be able to get a wage garnishment judgment against you because you are already being garnished with the legal maximum limit which is 50% of your wages when you’re supporting another child or spouse.
The wage and hour division of Department of Labor can give you additional information about having your wages garnished you can contact them online or by calling 186 6487 9243.