What's the maximum that can be taken from an employee's pay by garnishment?
Federal law restricts the amount taken in garnishment to the lesser of 25 percent of an employee's disposable earnings or the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage, whichever is less.
Several exceptions to this restriction:
A greater amount of an employee's wages to be garnished for child support, bankruptcy, or federal or state tax payments. And an employee can voluntarily agree to have a great amount deducted for payments to a creditor or creditors.
What part of an employee's earnings can be garnished?
You can consider wages, salaries, commissions, and bonuses as income that can be garnished. Pensions and retirement income may also be garnished. Tips are not considered wages for the purpose of garnishment.
Can I terminate an employee whose wages have been garnished?
Federal law says you cannot terminate an employee whose wages have been garnished for one debt. But the law does not It does not protect an employee from discharge if the employee's earnings have been subject to garnishment for a second or subsequent debts.
What if state law conflicts with federal wage garnishment laws?
If a state wage garnishment law differs from Title III, the employer must observe the law resulting in the smaller garnishment, or prohibiting the discharge of an employee because his or her earnings have been subject to garnishment for more than one debt.