Federal laws protect an individual from unfair wage garnishment by limiting the amount of money a person is required to pay. Individuals are also protected from harassment and discharge from employment due to wage garnishment. A wage garnishment must be court ordered and Social Security and public assistance benefits are exempt. Except in the cases of alimony or child support, unemployment and disability payments cannot be garnished.
Employers
Employers are required to withhold a portion of an employees pay when notified via a court order. An employer may not fire an employee because of one judgment of wage garnishment.
Debts
Outstanding debt judgments allow up to 25 percent of a person's disposable income to be deducted from his pay. Except under special circumstances, the total garnishment cannot exceed 25 percent regardless of how many judgments are made.
Child Support and Alimony
Child support and alimony are exempt from the 25 percent guidelines. Up to 50 percent of a person's disposable income may be garnished for this purpose. In the case of late payments, additional garnishments may be awarded.
Education Loans
Delinquent loans from the U.S. Department of Education allow for a 15 percent wage garnishment. Education loan garnishments may be temporarily stopped due to financial hardships such as unemployment or bankruptcy.
Disposable Income
Disposable income includes wages and earnings after taxes, unemployment, Social Security or state and federal retirement plans have been deducted. In most cases, money in a bank account is not considered disposable income.
