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.
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
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
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
stop wage garnishment and protect your financial future.
For trusted legal guidance, call us at (904) 637-1839 or
contact us online.