Wage Garnishment With No Notice From Employer
Employers may be required to withhold wages from an employee by the courts or state or federal agencies. Title III of the Consumer Credit Protection Act, administered by the Federal Wage and Hour Division, provides a measure of protection for the employee. By the time the employer receives the garnishment order, the employee knows about the garnishment action through notification by the courts or requesting agency. The employer is not required to notify or receive written authorization from the employee before taking deductions from his wages to satisfy the garnishment order.
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Child Support Payments
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Employers are required to send certain information to state agencies on new hires shortly after their hire date. This information is matched to state and federal social services records to identify individuals who owe child support. When such an individual is located, the agencies can issue garnishment orders to withhold wages, which are then sent to the courts to fulfill child support orders. The employer may withhold wages from one employee for multiple child support cases according to the guidelines set by the courts.
Tax Leins
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The IRS can issue a wage garnishment order for unpaid taxes and require an employer to withhold wages until the debt is paid, which includes income from regular wages, tips, bonuses and commissions. The employer is required to withhold these wages and is not required to obtain authorization from the employee. While the garnishment cannot be ignored by the employer, the employee can hire an attorney to pursue a release from the garnishment order for a more favorable settlement alternative.
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Delinquent Loans
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Debt due to bankruptcy, delinquent credit card accounts or debt held by private parties for a purchase of goods or services may also be subject to garnishment without notification. An employee can have several types of garnishments at one time, and the employer is required to process each one up to a maximum allowable limit.
Employee Rights
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Though it does not require an employer to notify the employee before taking deductions, Title III of the Consumer Credit Protection Act offers certain protections to employees. It limits the amount of wages that can be withheld in any pay week except for certain bankruptcy or federal or state tax cases. It also prohibits employers from discharging an employee, regardless of how many garnishments may be mandated. An employee may voluntarily agree to have a greater amount withheld than the courts require.
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References
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