Government Employees & Wage Garnishment

Government employees are not exempt from wage garnishment, but there are labor rights for all working citizens.

Government employees who owe funds for child support or to state and federal agencies are subject to wage garnishment under Title III of the Consumer Credit Protection Act (CCPA). This includes wages, salaries, commission, bonuses and payments from pensions or retirement. Employees cannot, however, be discharged from their place of employment due to garnished wages.

Provisions

Wage garnishments among government employees occur when the federal or state courts, the Internal Revenue Service or a state tax collection agency orders collection of funds due to unpaid debts. Title III allows for the collection of money to be greater than the anticipated amount of wage garnishment if it is for child support, bankruptcy or federal tax payments. Up to 50 percent of the employee's wages will be garnished, however, if the employee currently supports a spouse or child not covered by the support order.

Exceptions

Only a government employee's disposable income is taken when wages are garnished. Disposable income is money left after state and federal taxes have been deducted as well as Social Security, unemployment insurance and state employee retirement systems. These restrictions do not apply to some bankruptcy orders or federal and state debts. If the employee allows his employer to deduct a specified amount of his income to the collector, the same rule applies.

Rights

All government employees can request collection agencies to take at up to half of their wages for their work regardless of orders requesting wage garnishment. All complaints concerning unfair wage garnishment practices are reported to the Wage and Hour Division of the U.S. Department of Labor and are reviewed upon completion of application.

Penalties

Any state or federal agency, tax collections agency or employer who violates Title III is subject to criminal prosecution and can be fined no more than $1,000, imprisonment for up to a year or both. The government employee may have his garnished wages reinstated and the employee may take legal action against the agency or his employer. The Department of Labor may also take court action.

Compliance Assistance

Government employees and employers who need more information on wage garnishment can access the Consumer Credit Protection Act on the Compliance Assistance By Law website. Brochures and other materials, including a Federal Wage Garnishment Law Fact Sheet, are also available on the site.

References

• U.S. Department of Labor; Office of the Assistant Secretary for Policy; Office of Compliance Assistance Policy