Wage Garnishment Laws

 The Wage Garnishment requirements under Title III under the Consumer Credit Protection Act (CCPA) protect employees from discharge by their employers and withhold a certain fixed sum of money each month from the wages. The act is applicable to all those employers and individuals who receive money for personal services which includes one’s wages, salaries, commissions, bonuses, and income from a pension and retirement program, but ordinarily not including tips.

Title III helps the employer from dismissing the employee due to wage garnishment, but however does not protect an employee from dismiss if the employee’s income have been subject to garnishment for a second or subsequent Debts.

Title III also defends employees by limiting the amount of earnings that can be filling up in any worksheet or pay period to the lesser of 25 percent of disposable earnings or the amount by which disposable earnings are 30 times greater the federal minimum hourly wage prescribed by Section 6 (a) (1) of the Fair Labour Standards Act of 1938. This limit does not consider the number of garnishment orders an employer have received.

Title III accepts up to 50 per cent of an employer’s disposable earnings to be garnished if the employee is maintaining a current spouse or have a child support, and is up to 60 per cent if he is not. The act clearly specifies that garnishment limitations do not apply to Bankruptcy court orders and debts due for federal and state taxes or voluntary wage assignments.