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Why Employer’s Failure to Garnish Employee Wages

Why Employer's Failure to Garnish Employee Wages

In this aricle we let you Why Employer’s Failure to Garnish Employee Wages. When the courts order a garnishment of an employee’s wages, it is essential for the company to follow these orders to the letter to prevent possible further consequences to the business.

Can an Employer Fire an Employee 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.

How much can Employer Garnish wages?
The current federal minimum hourly wage is $7.25 per hour. If you make $600 per week after required deductions, 25% of your disposable income is $150. The amount that your income exceeds 30 times $7.25 is $382.50 ($600 – 217.50). That means the most that can be garnished from your weekly paycheck is $150.

Can my Wages be Garnished without Going to Court?
If you owe alimony, child support, back taxes, student loans, or have judgments against you for other obligations, your creditors may be able to garnish (take) your wages to collect those debts. Before they can garnish your wages, most creditors must first sue you, get a judgment, and obtain a court order.

What is a Wage Assignment Demand on Employer?
Unlike wage garnishments (where the court orders the employer to make payroll deductions), a wage assignment is a voluntary agreement between an employee and a creditor to have a portion of the employee’s wages assigned to pay off a debt.

Can a Loan Company Garnish your Wages?
Answer: A payday lender can only garnish your wages if it has a court order resulting from a lawsuit against you. If you don’t repay your loan, the payday lender or a debt collector generally can sue you to collect.

Can a Credit Card Company Garnish your Bank Account?
Once a credit card account (or any debt) goes into default, and the creditor decides it cannot collect, it may sell the debt to a debt collection company. If the ruling in the lawsuit goes against the consumer, a judgment may be issued to garnish property, bank accounts or wages.

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