What Is Wage Garnishment?
Wage garnishment is a legal procedure that requires an employer to withhold part of a worker's earnings to pay a debt. For most debts, a creditor must first get a court judgment. Title III of the federal Consumer Credit Protection Act limits how much can be taken from each paycheck, with different rules for child support, taxes, and federal debts such as defaulted student loans. State laws can give workers more protection.
What the law says
- The U.S. Department of Labor describes wage garnishment as any legal or equitable procedure through which some portion of a person's earnings is required to be withheld to pay a debt. Voluntary wage assignments are not garnishments. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- For ordinary debts, the federal limit is the lesser of 25% of a worker's weekly disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25 an hour, or $217.50 a week). U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- Under that rule, nothing can be garnished if weekly disposable earnings are $217.50 or less; between $217.50 and $290, only the amount above $217.50 can be garnished; at $290 or more, a maximum of 25% can be garnished. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- "Disposable earnings" means pay left after legally required deductions such as taxes and Social Security and Medicare contributions. Deductions not required by law, such as union dues or health insurance premiums, generally are not subtracted. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- For child support and alimony, up to 50% of disposable earnings may be garnished if the worker is supporting another spouse or child, or up to 60% if not; an additional 5% may be taken if payments are more than 12 weeks in arrears. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- The general garnishment limits do not apply to certain bankruptcy court orders or to debts for federal or state taxes. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- Federal agencies may garnish up to 15% of disposable earnings to repay defaulted federal non-tax debts, and guaranty agencies may garnish up to 15% for defaulted federal student loans; these garnishments follow the CCPA limits but are not subject to state garnishment laws. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- Most creditors can garnish wages or benefits only after a court issues a judgment saying the person owes the debt; federal and state agencies can sometimes garnish pay, benefits, or bank money without a court order. CFPB, Can a debt collector take or garnish my wages or benefits?
- The CCPA prohibits an employer from firing an employee whose earnings have been garnished for any one debt, no matter how many garnishment orders are filed to collect that debt. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
- If a state's garnishment law is more protective than the federal CCPA, the law that results in the smaller garnishment applies. U.S. Department of Labor, Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)
FAQ
Can a creditor garnish my wages without going to court?
Most creditors need a court judgment first. Federal and state government agencies can sometimes garnish without a court order.
How much of my paycheck can be taken for a credit card or medical debt?
Under federal law, the lesser of 25% of weekly disposable earnings or the amount by which those earnings exceed $217.50 (30 times the $7.25 federal minimum wage). A state law that allows less to be taken controls.
Can my employer fire me because my wages are garnished?
Federal law bars an employer from firing a worker because of garnishment for any one debt, regardless of how many garnishment orders are filed to collect that debt.
How does an IRS wage levy work?
Part of the wages is sent to the IRS each pay period until other payment arrangements are made, the taxes are paid, or the levy is released. Part of the wages is exempt and paid to the worker, based on the standard deduction and the number of dependents.
Can Social Security benefits in my bank account be garnished?
Banks must protect federal benefits deposited directly into an account: before freezing or garnishing, the bank must review the account and protect two months' worth of direct-deposited benefits.
Related
- Collections on Your Credit Report: Time Limits and Disputes
- Your Rights Under the Fair Debt Collection Practices Act (FDCPA)
- Zombie Debt: What to Do About Old, Time-Barred Debt
- Debt & Collections by state
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.