We spoke to business owners and managers about some tips they have about wage garnishment, and what you can do. Some opinions are wrong, and some of them are right. But they are all worth reading and investigating.
It’s important to have a clear paper (or digital if you receive your wage slip by email) trail to establish the discrepancy between what you should be paid and what you are being paid. Make sure you know exactly how much you should be getting paid as opposed to how much you are actually getting paid.
And as soon as you have all your ducks in a row and clear and definitive proof that you’re not being paid what you should because your wages are being garnished, you need to make an appointment with your boss to find out exactly where your money is going, and why your wages are being garnished.
Give your boss a chance
Give your boss a chance to explain, as there might be a legitimate reason for the underpayment, and when they’ve talked you through it, you’ll then be in a position to ask for the money that you’re owed if indeed you are owed it. If your boss refuses, take your proof higher up the corporate food chain to make sure you get what you’re owed, and if you still don’t get any joy, then it’s time to talk to a lawyer.
The legal route should always be the last resort, but if you’re left with no choice but to sue to get the money that you should have, but weren’t paid, then start looking for another job and secure the services of the best lawyer that you possibly can and sue your employer for as much as you possibly can. It’ll serve as a warning to them and might just stop it from happening to anyone else in their employ.
Jessica Lauren Vine, Founder and CEO of RV Idiots, www.rvidiots.com
What to do if your employer is over garnishing your pay
If a judgment creditor is attempting to garnish your wages, you may be able to object to the garnishment. The procedures you must follow to object to a wage garnishment depend on the type of debt you are attempting to collect from the creditor, as well as the laws of your state.
In most cases, however, the process of objecting to a garnishment begins with the preparation and filing of paperwork. If you believe your earnings are exempt in whole or in part under federal or state law, include that information in your written objection. Alternatively, depending on the circumstances, you may be able to claim that you have already paid the judgment creditor or that you have been discharged from bankruptcy.
Samantha Odo
Licenced Real Estate Expert at Precondo
Various kinds of debt
Different guidelines and statutory caps on the amount of your paycheck that can be garnished apply to various kinds of debt. Most of the time, a creditor must first obtain a money judgment against you to be able to garnish your wages. The creditor must file a lawsuit in court, win its case, or receive a default judgment (an automatic victory because you fail to respond to the action).
Documentation is sent to your employer by the creditor after it receives the judgment, usually through the local sheriff. According to the agreements, your employer must deduct a certain amount from each pay and send it directly to the entity or person you owe money to until your obligation is settled. Some creditors, such as those who owe taxes, federal student loans, child support, or alimony, can get a wage garnishment without going through the legal system.
Take action to stop the garnishment
You will be notified of the garnishment in any case. Until you make full payment on the debt or take action to stop the garnishment, such as filing a claim for an exemption with the court, the creditor will continue to deduct money from your paycheck. The amount of money you are allowed to keep is determined by the exemption laws in your state. You could be able to keep some or all of your money, depending on your circumstances. The maximum amount of income that may be deducted from each paycheck is also regulated by state law.
The sum is determined by:
- The employee’s discretionary income, which differs from gross income and frequently differs from take-home pay
- The corresponding minimum wage
- Disposable Earnings
The amount paid to the employee after making the legally needed deductions is known as disposable earnings. When an employee’s pay rate or the number of mandatory deductions change, the employee’s disposable income will also change.
The maximum amount that may be garnished is 25 percent of your disposable weekly earnings (what’s left over after required deductions), or the amount by which your disposable weekly earnings exceed 30 times the federal minimum hourly rate, whichever is less. The maximum percentage that can be deducted from your wages varies by state.
Minimum wage changes
Most consumer debt – The lesser of 25 percent or the difference between your disposable income and $217.51 (i.e., 30 times the federal minimum wage of $7.25 an hour. This will change If the minimum wage changes.
Child support or alimony – Up to 60 percent (or, 50 percent if you have another child or spouse).. Your limit may increase by an additional 5 percent if you’re over 12 weeks late.
Federal student loans – Up to 15 percent of your disposable income.
Back taxes: Up to 15 percent of your disposable income.
Because your wages have been withheld to settle one debt, you may not be dismissed or subject to other forms of retaliation. However, after you have more garnishments, your protection typically becomes weaker. If you have had your wages garnished by more than one creditor or by the same creditor for two or more debts, you are not protected against retaliation under federal law. Some states provide greater security.
What to do if your wages are over garnished
There are various ways you might be able to prevent the garnishment of your earnings or reduce the amount that is deducted. As a side note, before you begin on your own, you might speak with a more knowledgeable lawyer about the laws and consumer rights..
You must file paperwork with the court to request a hearing date if you wish to contest a wage garnishment. You can prove during the hearing that you are entitled to an exemption or need additional money from your paycheck to cover your costs. The garnishment may be halted or continued by the judge.
Depending on your financial and personal condition, you might be able to submit a claim of exemption and have the salary garnishment stopped or reduced. For instance, many governments grant a head of household exemption to creditors who provide financial support for a dependent (such as a kid or elderly parent).
Contest the wage garnishment
If more money than necessary is being deducted from your paychecks, for example, or if the creditor didn’t follow the proper procedures, you might be entitled to contest the wage garnishment.
To confirm that you truly owe the amount, you need also to review the documentation that the courts or your company send you. You may be able to stop the garnishment and have the debt forgiven if a creditor is attempting to collect on a debt that you do not owe, such as one that has been paid in full or was discharged in bankruptcy.
Although declaring bankruptcy may seem like a radical alternative, it may be the wisest course of action if you are deeply in debt. You might be able to stop the wage garnishment right away and get the underlying debts erased by declaring bankruptcy. You can decide whether bankruptcy would be a good option for you by working with an experienced lawyer.
Levon L. Galstyan, Certified Public Accountant at Oak View Law Group
Pay over-garnishing by employers
Although I am an employer, I have some tips for the employees to encounter “pay over-garnishing by employers”.
Usually, employers don’t over garnish the pay of employees. They don’t get the expected results to achieve the company’s revenue goals in a specific time. Thus, they are compelled to balance the company’s budgets that are directly associated with the revenue goals.
Tip # 1: When an employee faces an over-garnishing pay issue, he must come up with the points of performance that the employer may have overlooked. Don’t get irritated, discuss in detail and prove your point with data-backed-up examples. This will surely convince your employer to revise the pay garnishment.
Tip # 2: Elaborate on your qualification and experiences and also on the accomplished projects that contributed to the company’s growth. Justify your case by presenting your re-evaluated resume and productivity charts. Give specific examples of the industry-based pay scales (market standard pay) that best match your skill set and qualification.
Tip # 3: Listen to what the employer’s point of view is about over-garnishing your pay. If it justifies, work on the points to improve. Set a time-based goal for achieving what, according to your employer, you are lacking. And, if in any case, it doesn’t justify, first, request a revision on pay garnishing. Again, in this case, you must have very strong arguments about why your employer must revise over-garnishing.
Ronald Williams, Founder, BestPeopleFinder, www.bestpeoplefinder.com
Ask for your credit history report
Wage garnishment is already a stressful situation, but having money taken out of your paycheck for a debt you do not actually owe is much worse. That is why it is essential to check your credit reports carefully because errors in reporting are common.
In the event that you suspect your employer is excessively garnishing your wages, you have the right to request a statement detailing the debt’s payments and the amount still owed. Your creditor has seven days to notify your employer. After seven days, your employer may notify the creditor in writing that they will no longer withhold funds from your paychecks until they receive the necessary information. Following fourteen days of no response from the creditor, the employer is no longer required to continue wage garnishment.
Also, each of the three major credit reporting agencies allows you to request your report once per year at no cost. You can dispute any of these reports if you think there is an error, and if your dispute is upheld, you will not have to worry about wage garnishment.
Kirill Sajaev, Founder, AUQ.io
Court-approved rulings
Wage garnishing is a legal way of holding back the salary of employees according to court-approved rulings where these wage garnishments are used to pay back debts, child support, etc. Employees can challenge these garnishments in court and will not face any retaliation from the employers, as they have protection against retaliation. It is an employer’s responsibility to garnish an employee’s wage given that they receive a notice from the court to do so.
If the employer is over-garnishing a wage of an employee and holds more than what is instructed by the court, then that is a different story. Employees should take action in court as employers will need to restitute the garnishment to the court or authority that issued the wage garnishment order. Until the disagreement is resolved, that organization will serve as the money’s custodian. In this case, it will not only help the employee get the proper wage garnishment, but it will also take legal action against the employer.
Erin Zadoorian | CEO
budpop.com
Department of Labor
If your employer is over garnishing your pay, you may be able to file a claim with the Department of Labor. The Department of Labor can help you recover any wages that were unlawfully withheld from your paychecks. To file a claim, you will need to provide documentation to show that your employer was over garnishing your pay. This documentation can include your pay stubs or bank statements. Once the Department of Labor investigates your claim, they will determine whether your employer owes you any back wages.
If they find that your employer did withhold too much money from your paycheck, they will order your employer to pay you the difference. You can also file a private lawsuit against your employer if you believe that they have unlawfully withheld wages from your paychecks. An experienced attorney can help you determine whether filing a claim with the Department of Labor or filing a private lawsuit is the best option for you.
Oberon Copeland
Owner & CEO Of Veryinformed.com
Human Resources department
If an employer is ‘over garnishing’ employee wages it may help to speak with the company’s Human Resources department to learn how the garnishment is being calculated. When notice is received the business owner may not always be clear on their responsibilities because the rules governing payroll calculations can be complicated.
An employer usually receives notice to garnish the wages of an employee through court order or IRS levy. An employer must comply with the garnishment request and immediately begin withholding and remitting payment when notice is received via the legal order.
Explain to the Human Resource Department why the garnishment calculation is not correct if there is a legitimate disagreement. If the Human Resource Department disagrees with your understanding of how the garnishment is calculated then an employee will need to speak with their attorney to learn the source of the error and misunderstanding. An attorney should be able to review the calculation and if necessary, will need to make a motion to the court to put the employer on notice regarding the miscalculation.
David Reischer, Esq.
Attorney & CEO of LegalAdvice.com
Refinance your debt
In order to pay off your previous loans, debt consolidation or refinancing entails taking out a new loan. If you’ve become behind on your payments to the point that your wages are being garnished, it will be challenging to be approved for a new loan. But it might be doable.
A secured loan, such as a home equity loan or home equity line of credit, may be available to you. Although using the money to pay off your creditors could stop the garnishment, this isn’t always the wisest course of action because you risk losing your house if you can’t repay the obligation.
Dan Close
Founder & CEO, We Buy Houses in Kentucky
https://buyhousesinkentucky.com/
Deductions from your paycheck
If more money than necessary is being deducted from your paychecks, for example, or if the creditor didn’t follow the proper procedures, you might be entitled to contest the wage garnishment.
In order to confirm that you truly owe the amount, you need also review the documentation that the courts or your company send you. You may be able to stop the garnishment and have the debt erased if a creditor is attempting to collect on a debt that you do not owe, such as one that has been paid in full or was discharged in bankruptcy.
Max Whiteside
SEO & Content Lead at Breaking Muscle – https://breakingmuscle.com
Owing child support
Your pay can be garnished if you are either owing child support, alimony, student loan, back taxes, or a court judgment has been filed against you.
However, in some cases, your employer may seem to over garnish your pay to an extent where you don’t have enough for yourself. Well, here is what to do if you are in such a situation.
File a claim of exemption: while your employer garnishes your pay you can keep a certain amount of property needed for basic living, that is working and feeding. But if you don’t have enough for basic living, you can file a claim of exemption. You can exempt the head of the household, social security, and disability. After completing the form, file it with the court.
File for bankruptcy: Depending on the chapter of bankruptcy you filed, your debt can either be wiped out or reduced to a certain amount.
Get rid of the money judgment: For any reason, you found out that the creditor obtained his judgment improperly, you can file a motion to get rid of the judgment. In this case, you would be giving valid reasons why you believe the judgment was improper, if you win, the judge vacates the judgment immediately.
I am sure with this, you now know what to do when you find yourself in a situation where your employer over garnishes your pay.
Joseph Puglisi, Dating Iconic, datingiconic.com
Consolidate or restructure your debt
In order to pay off your previous loans, debt consolidation or refinancing entails taking out a new loan. If you’ve become behind on your payments to the point that your wages are being garnished, it will be challenging to be approved for a new loan. But it might be doable. A secured loan, such as a home equity loan or home equity line of credit, may be available to you. Although using the money to pay off your creditors could stop the garnishment, this isn’t always the wisest course of action because you risk losing your house if you can’t repay the obligation.
Dr. Flora Sadri DO PsyclarityHealth
Website: https://psyclarityhealth.com/
Money out of your paycheck
If you are being over garnished, it means that your employer is taking more money out of your paycheck than they are supposed to. This can happen for a number of reasons, but it is usually a mistake on the employer’s part.
If you find that your employer is over garnishing your pay, you should take action to correct the situation. Depending on the severity of the overage, you may want to speak to your employer directly to resolve the issue. If the overage is minor, you may be able to have the amount adjusted through your payroll department. However, if the overage is significant, you may need to take legal action to protect your rights.
There are a few things you can do to rectify the situation. First, you can try to negotiate with your employer to have the garnishment reduced or removed entirely. If that’s not possible, you can file a complaint with the appropriate government agency, such as the Department of Labor. You can also try to file a motion to stop the garnishment with the court that issued the original order. In some cases, you may be able to get the money that was improperly garnished refunded to you.
Violation of the Fair Labor Standards Act
Willful over garnishment of wages is a violation of the Fair Labor Standards Act, and you may be entitled to recover damages. An experienced attorney can help you assess your situation and determine the best course of action.
Overall, if you have any questions or concerns about your rights as an employee, you should talk to a lawyer. They will be able to give you specific advice about your situation and help you determine the best course of action.
Best regards,
Brandon Wilkes, Marketing Manager @ The Big Phone Store
Website: https://www.thebigphonestore.co.uk/
Try To Reach A Resolution With The Creditor
Working with the creditor that wants to deduct money from your paycheck is one of the first actions you may take. In comparison to the amount that would be deducted from your salary, you might be able to negotiate a lower monthly payment. Alternatively, you might be able to arrange a debt settlement and pay off the amount in full with one single sum.
- Consult a credit counsellor to establish a payment schedule:
You might be able to negotiate with your creditors on your behalf by using a nonprofit credit counselling group like Money Management International. In place of the creditor and the courts, you might be able to enter a more reasonable payment schedule that is overseen by the counselling group.
Dean Lee – Head of Marketing at Sealions
Website: https://sealions.com/
