Usually made by court order, a wage garnishment can be implemented for several reasons, like owing back taxes, student loans, alimony, child support, or other debts such as unpaid auto loans. Once a garnishment is placed, employers must respond to the garnishment timely. Penalties for not complying with federal law surrounding garnishments can be stiff—for example, employers who ignore garnishment orders can be liable for the entire amount of the debtor’s debt, regardless of whether the debtor is a current employee or earns enough money to repay the debt. Individual state laws should be also referenced for handling garnishments.
Generally the garnishment must begin being withheld from the employee’s first check following a 10 day waiting period from the date of the notice to give the employee warning of the required deduction. If the employee says they can’t afford the deduction, they must request a reduction, but until it’s approved, you must withhold the required amount.
If an employee’s wages are garnished, Title III, Consumer Credit Protection Act (CCPA) protects them from being discharged. Although federal law specifically prohibits discharging an employee because of one garnishment, no provision is made to protect the employee from discharge due to a second or third garnishment. This discretion is left to the state law. In the case of multiple garnishments, inquiries regarding the precedence of each garnishment as well as other matters not covered by Title III can be directed to the court or agency that ordered the garnishment.
Employers in violation of Title III may be subject to reinstating a discharged employee, payment of back wages, and restoration of improperly garnished amounts; if they are in violation of the discharge laws, they may be prosecuted criminally, fined up to $1,000, and/or imprisoned for up to a year.
If a state wage garnishment law differs from the Title III Act, the law resulting in the smaller garnishment must be observed.