What Every Employer Needs To Know About A Wage Deduction Summons

When an employer receives a wage garnishment summons, it signifies a legal obligation to withhold a portion of an employee’s earnings for the repayment of a debt. This garnishment is a court-ordered directive and must be handled with precision and timeliness to comply with the law and protect both the employer and the employee’s rights. Here’s what every employer needs to know about handling a wage garnishment summons:

1. Understand the Garnishment Order:

• Carefully review the garnishment order to understand the amount to be garnished and the duration of the garnishment. The order should provide all necessary details, including the creditor’s information, the reason for garnishment, and any specific instructions or deadlines.

2. Notify the Employee:

• It’s generally required to notify the employee of the garnishment. This notification should be done discreetly and respectfully, as it can be a sensitive matter. The employee should be informed about the garnishment amount, the reason, and how long the garnishment will continue.

3. Calculate the Garnishment Amount:

• Federal and state laws provide guidelines on the percentage of an employee’s disposable income that can be garnished. Disposable income is the employee’s earnings after legally required deductions like taxes and Social Security. Ensure you calculate the amount correctly to comply with the law and not over or under withhold.

4. Adhere to Priority and Multiple Garnishments:

• If there are multiple garnishments against the same employee, they must be processed in the order received, up to the allowable maximum. Certain types of debts, like child support or tax levies, take precedence over others.

5. Remit Payments Promptly:

• The garnishment order will specify where and when to send the payments. It’s crucial to adhere to these instructions to avoid legal penalties. Late or incorrect payments can result in fines or legal action against the employer.

6. Maintain Employee Privacy:

• The details of the garnishment should be kept confidential, shared only with those who need to know to process the garnishment. Breaching the employee’s privacy can lead to trust issues or even legal consequences.

7. Protection Against Termination:

• Federal law prohibits employers from terminating an employee solely because of a single garnishment order. However, this protection might not extend to multiple garnishment orders, depending on state laws.

8. Record Keeping:

• Maintain detailed records of the garnishment, including communications, calculations, and payments. This documentation can be crucial in the event of disputes or audits.

9. Understand State Laws:

• State laws regarding wage garnishment can vary and may provide more protections or limitations than federal law. Ensure compliance with the laws in your state or seek legal advice if uncertain.

10. Seek Legal Advice:

• If there are any doubts or complexities regarding the garnishment, it’s wise to seek legal counsel. Non-compliance can result in significant legal and financial consequences for the employer.

In summary, handling a wage garnishment summons requires careful attention to legal requirements, precise calculations, and sensitivity to the employee’s situation. By understanding and following the proper procedures, employers can navigate the complexities of wage garnishment effectively and legally.

Wage Garnishment