Wage garnishment is when an employer is required to withhold a portion of an individual's earnings to pay off a debt. The federal law that regulates wage garnishment is Title III of the Consumer Credit Protection Act (CCPA). Title III of the Consumer Credit Protection Act (CCPA) is administered by the Wage and Hour Division (WHD). Title III prohibits an employer from discharging an employee because his or her earnings have been subject to garnishment for any one debt. However if the employee has been subject to garnishment for a second debt, Title III does not protect an employee from discharge. Title III also protects employees by limiting the amount of earnings that may be withheld from a paycheck. For child support, bankruptcy or federal or state tax payments Title III permits a greater amount to be garnished from an employee's wages.
Most states follow the Federal laws regarding wage garnishment. However 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. Please check out your state website for more information on state laws regarding wage garnishments.
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