Other Garnishments by X34e3B

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									                           Other Garnishments
                               Chapter 9

Creditor Garnishment
          Maximum amount that can be garnished is 25% of disposable
            earnings. State laws do apply if the amount to garnish is less
            than 25%
               o Disposable earnings are Gross wages less all deductions
                  required by law.
               o Employees do have an amount they have to meet (an
                  exempt amount) before the garnishment can be taken:
                       154.50 must be paid to the associate if weekly
                       309.00 if bi-weekly
                       334.75 if semi-monthly
                       669.50 if monthly
               o if the associate has a child support order or another
                  garnishment order, the amount up to the maximum can
                  be taken.
                       example…the 25% of disposable is 125.40, and
                         they have a child support of 100.00. the child
                         support is paid as 100.00, the garnishment is paid
                         as 25.40. If the child support order is 200.00, the
                         garnishment cannot be taken
          make sure that state laws are being followed concerning:
               o priority
               o how long to withhold
               o if administrative fee can be charged
               o procedures on out of state garnishments
               o penalities for failure to withhold.
          Employer Responsibilities:
               o Make sure the garnishment is valid
               o Inform employee of garnishment and give a copy of
                  order
               o Tell employee of any exceptions and how garnishment
                  will affect their pay
               o Determine if the amount demanded exceeds the
                  maximum allowed by federal/state law
               o If employee has more than one garnishment order,
                  determine priority and how the available disposable
                  earnings must be allocated
              o Contact legal council to review garnishment order and
                 answer any questions
          Penalties are in effect for non compliance

Bankruptcy Orders

       Bankruptcy Orders when received take priority over any other
        claim on an employees wages, including Levies received before
        the bankruptcy….
             ONLY EXCEPTION-Bankruptcy orders DO NOT take
              precedence over CHILD SUPPORT ORDERS
             CEASE WITHHOLDING on all other garnishments/levies
              once the bankruptcy order is received.
       Make sure to withhold exactly what the Bankruptcy order states to
        withhold, regardless of how much is left to the employee
        afterwards. Contact the Trustee with any questions concerning the
        bankruptcy order.
       Penalties are in effect for non compliance

Student Loan Collections

       Maximum amount that can be garnished:
             If issued by a state guarantee agency, no more than the
               lesser of 10% of disposable earnings or the excess of the
               disposable earnings over 30 times (if paid weekly) than the
               federal hourly minimum wage may be garnished
             If issued by the Department of Education, the maximum that
               can be garnished is the lesser of 15% of disposable earnings
               or excess of disposable earnings over 30 times (if paid
               weekly) the federal hourly minimum wage
                   If facing multiple student loans, the maximum that
                      can be withheld is 25% of disposable or disposable
                      earnings over 30 times (if paid weekly) federal hourly
                      minimum wage-whichever is less
       Employees must receive 30 days notice before withholding begins
        to give them a chance to work out repayment plan
       There is no guidance on the priority of a student loan, however the
        Department of Education has allowed for Child Support orders to
        take priority.
       Penalties are in effect for non compliance


Federal Agency Debt Collections
          Maximum to be garnished is the lesser of
               o The amount indicated on the garnishment order up to
                  15% of the disposable pay or
               o The amount by which the disposable pay exceeds 30
                  times (if paid weekly) the federal hourly minimum wage
                  in effect.
          Must provide notice to employee in order to allow for a
           repayment plan to be worked out if necessary.
          Have priority over other types of orders except support orders.
           If an another kind of garnishment order, or support order is in
           place, then the amount paid is the lesser of
               o 15% of disposable pay or the excess of 30 (if paid
                  weekly) times the federal hourly minimum wage
               o 25% of the disposable less the amounts of the other
                  orders in place with priority.
          Penalties are in effect for non compliance

								
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