What Are Payroll Garnishment Rules?


Quick Answer

Payroll garnishment rules are rules that permit the employer to withhold part of an employee's pay in order to settle a debt, according to GarnishmentLaws.org. The maximum limit on disposable income is 25 percent and 30 times any money that exceeds the minimum federal wage.

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Full Answer

Garnishment is a legally binding process, claims GarnishmentLaws.org. For any creditor to garnish an employee, the creditor must launch a legal action against the debtor in the court of law, after which he is granted the right to garnish the debtor if the court rules in his favor. Once the legal action is filed in court, the debtor has the right to challenge the case against him. If the debtor fails to appear before the court to counter the accusations levelled against him, the court issues an order to the creditor to go ahead and garnish the debtor.

Under federal law, the creditor can garnish up to a maximum of 60 percent of the debtor's wages, states GarnishmentLaws.org. However, this amount is rarely awarded because of its bigger magnitude.

The types of garnishment include wage garnishment, attachment and military garnishment, reports GarnishmentLaws.org. The kind of garnishment that the debtor faces depends on the entity that is suing him.

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