| A wage garnishment is a legal procedure through | | | | and incomes, e.g. wages, salaries, commissions, |
| which a percentage of a person's earnings are | | | | bonuses or earnings from a pension or retirement |
| withheld by an employer for the payment of a | | | | plan. The CCPA also forbids an employer from |
| debt. Most wage garnishments are made by court | | | | discharging an employee whose wages are |
| order. Other types of wage garnishments are of | | | | garnished for any one debt, regardless of the |
| legal or open procedures made by the IRS or | | | | number of levies made or attempts made to |
| state tax collection agency levies for unpaid taxes | | | | collect that debt, because of one single wage |
| and federal agency administrative garnishments | | | | garnishment. The CCPA does not forbid |
| for non-tax debts owed to the federal | | | | discharging an employee when an employee's |
| government. | | | | wages are separately garnished for two or more |
| Wage garnishments do not include voluntary wage | | | | debts owed. |
| garnishments. Some debtor's may voluntarily | | | | The amount of pay subject to wage garnishment |
| consort with their employers to turn over a | | | | is based on the employee's disposable wages. This |
| specified amount of their earnings to a creditor to | | | | is the amount of pay left over after all legally |
| absolve the debt voluntarily, without the use of a | | | | required deductions are made, e.g. federal, state |
| court order. | | | | and local taxes, State Unemployment Insurance, |
| The Wage and Hour Division of the Department | | | | Social Security or any other withholdings for |
| of Labor's Employment Standards Administration | | | | employee retirement systems required by law. |
| has dispensed Title III of the Consumer Credit | | | | Deductions that are not required by law and that |
| Protection Act (CCPA) to limit the amount of an | | | | may not be subtracted from gross earnings when |
| employee's earnings that are garnished and | | | | calculating disposable earnings under the CCPA are: |
| protects employee's from losing their jobs if their | | | | voluntary wage deductions, union dues, health and |
| wages are garnished for only one debt. | | | | life insurance, charitable contributions, savings |
| Title III of the CCPA is enforced in all 50 states, | | | | bonds, optional retirement plans, reimbursements |
| including the District of Columbia, and all U.S. | | | | to employers for payroll advances or |
| territories and possessions. This is a law that | | | | merchandise. |
| protects everyone who receives personal earning | | | | |