If a parsley farmer is sued, can the court garnish his wages?
We all have heard the “punny” jokes about garnishments—so lettuce not dwell on those. But seriously, if it happens to your employees, it’s no laughing matter. Employer’s cooperation is taken quite seriously by both state and federal courts, with stiff consequences for non-compliance.
Usually made by court order, a wage garnishment can be implemented for several reasons, like owing back taxes, student loans, alimony, child support, or other debts owed to the state or federal government. Once a garnishment is placed, employers must respond to the garnishment timely and accurately. Penalties for not complying with federal law surrounding garnishments can be stiff—for example, employers who ignore garnishment orders can be liable for the entire amount of the debtor’s debt, regardless of whether the debtor is a current employee or earns enough money. Individual state laws should be also referenced for handling garnishments, but since our clients are located all over the country we will focus in on the federal regulations that employers must follow.
If an employee’s wages are garnished, Title III, Consumer Credit Protection Act (CCPA) protects them from being discharged on account of having only one garnishment, and the law also limits the amount that can be garnished per week. Although federal law specifically prohibits discharging an employee because of one garnishment, no provision is made to protect the employee from discharge due to a second or third garnishment from two or more debts. This discretion is left to the state law—Title III states that it does not “annul, alter, or affect, or exempt any person from complying with, the laws of any state … prohibiting the discharge of any employee by reason of the fact that his earnings have been subjected to garnishment for more than one indebtedness.” In the case of multiple garnishments, inquiries regarding the precedence of each garnishment as well as other matters not covered by Title III can be directed to the court or agency that ordered the garnishment.
Employers in violation of Title III may be subject to reinstating a discharged employee, payment of back wages, and restoration of improperly garnished amounts; if they are in violation of the discharge laws, they may be prosecuted criminally, fined up to $1,000, and/or imprisoned for up to a year.
As I mentioned before, don’t forget to comply with your particular state’s regulations. If a state wage garnishment law differs from the Title III Act, the law resulting in the smaller garnishment must be observed. If you have questions regarding your employee’s garnishment and our payroll process, feel free to call us at 310-534-5577 or email us at [email protected].
