Why would an employer fire you for wage garnishment?

Employees cannot be fired because their wages are garnished. Federal law protects you from being fired simply because your wages are being garnished for a single debt. However, if your wages are being garnished for two or more debts, your employer can fire you if it decides to do so.

What can an employer do with a wage garnishment?

A wage garnishment is any legal or equitable procedure where some portion of a person’s earnings is withheld by an employer for the payment of a debt. This is typically initiated through a court order or government agency action (such as an IRS levy) that requires an employer to withhold a percentage of an employee’s compensation.

What’s the maximum amount you can garnish an employee for?

The amount subject to garnishment is the amount above 30 times the federal minimum wage, or 25 percent of disposable earnings, whichever is less. Employers must correctly calculate the amount to withhold, and must make the deductions until the garnishment expires.

Can a company be liable for a garnishment judgment?

The creditor may seek another remedy that could attack the company where the employee works. The primary reason that employers generally comply with garnishment judgment is that the company itself could become and remain liable for the full debt owed to the creditor even if the person that owes is not an employee.

How are garnishments a no-win proposition for employers?

Garnishments: A Trap for Employers. Employee garnishments are a no-win proposition for employers. For a miniscule $6.00 payment, employers must process employee garnishments, calculate and withhold from employee’s paychecks, and often at the same time balance competing obligations, such as support orders and tax levies.

How do you stop wage garnishment?

To stop wage garnishment means that you no longer have to pay creditors. For instance, one way to stop a wage garnishment is by returning to the local court which issued the judgment and request the wage garnishment be stopped. You will have to file paperwork and request a court hearing.

Does employer have to comply with employee wage garnish?

Employers are typically notified of a wage garnishment via a court order or IRS levy. They must comply with the garnishment request, and typically start withholding and remitting payment as soon as the order is received. IRS wage garnishment and levy paperwork will walk you through the steps of completing the wage garnishment.

How do you calculate wage garnishment?

The amount of your income that can be garnished is based on a percentage of your disposable income. For the wage garnishment calculation, your disposable income is your gross income minus any legally required deductions including federal, state and local taxes, unemployment insurance, social security deductions, and state retirement systems.

How does a wage garnishment work?

Wage garnishment is a court order, or a mandate from a government agency that allows a creditor to automatically deduct money from your wages. The order is sent to your employer so that the money will come out of your paycheck before you ever receive it.