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Does Wage Garnishment Affect Employment?

Posted By Ryan Albaugh || 17-Jul-2019

If an individual falls behind in payments to a creditor, the company could take legal action to force them to repay the amount owed. One way they can achieve this is by requesting the court to issue a wage garnishment order, which requires that their employer withhold a certain amount of their paycheck. The withheld amount is sent to their creditor to pay towards their debt. A wage garnishment could affect employment in various ways.

Affecting Morale

Beyond affecting earnings, wage garnishment could affect a person’s morale and productivity. Unfortunately, when a creditor wins its case, the individual’s employer is, in a way, notified of their financial struggles. Having an employer involved in more personal aspects of an individual’s life could be humiliating and cause stress and/or anxiety. The stressors added by wage garnishment could also lead to a decrease in motivation.

Affecting Employer Processes

Because various diverse state and federal laws regulate wage garnishment, an employer must ensure that it follows the legal requirements for withholding an employee’s income. For example, under federal law, a creditor cannot take more than 25% of a debtor’s pay if they make above a certain amount each week. To avoid fines or other penalties, the employer must ensure that they do not garnish more than the allowable legal limits.

Protection from Termination

The Consumer Credit Protection Act (CCPA) is the federal law that regulates wage garnishment. Under Title III of the CCPA, an employer cannot fire an employee if their wages are being garnished for only one debt. However, this protection does not apply if the individual has more than one garnishment, whether it be from the same or different creditors. Fortunately, Florida law states that an individual, generally, cannot be fired for having multiple garnishments.

Request a Free Consultation with Albaugh Law Firm

Our team understands that income withholding could have substantial impacts on your life. That is why we will sit down with you to understand your situation and discuss debt relief options. Our team will help explore solutions to stop wage garnishment and protect your financial future.

For trusted legal guidance, call us at (904) 637-1839 or contact us online.

Categories: Bankruptcy