Contact Us
Subscribe to this blog via RSS
Join us on LinkedInCategories
- SCOTUS
- Overtime
- Overtime Rule
- Federal Trade Commission
- FTC
- Service Animals
- Remote Work
- Occupational Safety and Health Administration (“OSHA”)
- Minors
- Work from Home
- Workplace health
- Americans with Disabilities Act ("ADA")
- COVID-19
- Intellectual Property
- Trade Secrets
- Worker Misclassification
- FMLA Retaliation
- Non-exempt employees
- Family and Medical Leave Act (“FMLA”)
- Wage and Hour
- ADA Amendments Act of 2008 (“ADAAA”)
- Adverse Employment Action
- Civil Rights
- Compliance
- Department of Labor ("DOL")
- EEOC
- Employee Handbook
- Employee Misconduct
- Employer Group Health Plans
- Employment Law
- Fair Labor Standards Act (FLSA)
- HIPAA
- Independent Contractors
- National Labor Relations Act (NLRA)
- National Labor Relations Board (NLRB)
- Pregnancy Discrimination Act
- Social Media
- Social Media Policies
- Telecommuting
- Title VII of the 1964 Civil Rights Act
- U.S. Department of Labor
- U.S. Equal Employment Opportunity Commission (“EEOC”)
- U.S. Supreme Court
- Union
- Criminal Background Checks
- Employee Training
- Federal Department of Labor
- Government employees
- Kentucky Wage and Hour Act
- Payroll
- At-will employment
- Employee Benefits
- Employment Practices Liability Insurance
- Genetic Information Nondiscrimination Act ("GINA")
- Litigation
- Non-Compete Agreement
- Online Defamation
- Paid Time Off ("PTO")
- Pension Plans
- Record Retention
- Reference checks
- Severance Pay
- Supervisor
- Tangible employment actions
- Title VII retaliation cases
- Crisis Management
- OSHA
- Workplace Politics
- Business Insurance
- Employee Contracts
- Employment Discrimination Laws
- Hiring and Firing
- Internet & Media Law
- Kentucky Labor Cabinet
- Salary Threshold
- Unemployment Benefits
- Uniformed Services Employment and Reemployment Rights Act
- USERRA
- Workplace Discrimination, Harassment and Retaliation
What You Should Know About Wage Garnishment
Wage garnishment is a legal means of collecting an unpaid debt through a direct payroll deduction. In most cases, a creditor must file a lawsuit and obtain a judgment against the debtor before a garnishment can be instituted (there are, however, a few exceptions to this general rule).
Garnishments are subject to both federal and state law. The Consumer Credit Protection Act (“CCPA”) is the governing federal law and it prohibits the firing of an employee for one garnishment. Some states do allow the firing of an employee if more than one garnishment has been filed. While it is an inconvenience for payroll departments to handle garnishments, you should always check with an attorney before you dismiss an employee simply because they are subject to more than one garnishment.
If you are an employer and an employee becomes subject to wage garnishment, you will receive notice and instructions from the court directing you to withhold a portion of the employee’s earnings and pay them directly to the court. "Earnings" include: wages, commissions, rent received, or other income such as dividends. Generally, Social Security, SSI, Veterans benefits, and Railroad Retirement cannot be garnished, nor can certain types of civil service, military and pension benefits. In Kentucky, only up to 25% of an employee’s earnings are subject to wage garnishment. A wage garnishment order will include a section directing the employer on how to calculate the amount of money that can be withheld from a pay period.
Employers should always respond to a wage garnishment order; they have twenty (20) days to do so in accordance with Kentucky law. If you receive an order and have questions about the appropriate response, contact the labor and employment law attorneys at McBrayer.
Services may be performed by others.
This article does not constitute legal advice.
