The process of wage garnishment permits a creditor to recover a part of an employee’s earnings to meet an outstanding debt. As an employer, it is imperative to comprehend the consequences and prerequisites linked with wage garnishment.
Wage Garnishemnt Key Points Employers Need To Know
Legal Obligations: Employers must adhere to legal obligations by complying with court or government-issued wage garnishment orders, or face penalties or legal action.
Notification: Upon receipt of the wage garnishment order notice, employers are informed of details such as the employee’s name, garnishment amount, and duration.
Calculation of Garnishment Amount: The amount withheld from the employee’s wages is determined by the issuing court or government agency, and may be a fixed percentage or a specific amount.
Priority of Garnishments: In cases where multiple garnishments are in effect, employers must follow priority rules established by law. It is crucial to understand the governing laws in your jurisdiction to ensure compliance, as certain types of garnishments such as child support may take precedence over others.
Payroll Deductions: When an employer receives a garnishment order, they are obligated to deduct the specified amount from the employee’s wages until the debt is settled or the order expires.
Employee Protection: The Consumer Credit Protection Act (CCPA) sets limits to safeguard employees’ income so that they can fulfill their basic necessities. As an employer, it is vital to be aware of these limits and ensure compliance.
Confidentiality: Employers must maintain complete confidentiality when executing wage garnishment orders as sharing such information with unauthorized persons can have legal consequences.
Communication: Open and honest communication with the employee subject to garnishment is necessary, and employers must maintain professionalism while respecting their privacy.
Recordkeeping: Records of garnishment payments made to the creditor must be maintained by the employers, and they should include the dates and amounts withheld from the employee’s wages.
Termination and Retaliation: Retaliation against employees due to wage garnishment is illegal, and employers should be mindful of these legal protections. Protecting employees from discrimination and termination is crucial.
Contact Our Experienced Attorneys
If you are struggling with wage garnishment, you must immediately obtain the services of our experienced wage garnishment defense attorneys in Houston to safeguard your rights. We will guide you through these challenging times. Our team of competent lawyers is committed to providing efficient legal counsel and protecting your interests.