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What Are the Federal Laws Regarding Wage Garnishment? December 7, 2017

Rochester, Monroe
What Are the Federal Laws Regarding Wage Garnishment?, Rochester, New York

If you’re in debt, you may be subject to wage garnishment, or the automatic withdrawal of funds from your earnings. There are federal laws governing the garnishment of wages, and it’s important you fully comprehend them to ensure any money collected from you is taken in the appropriate manner. In Rochester, NY, debt relief lawyer Robert A. Schwartz helps clients comprehend federal laws, while also offering dependable legal services for a range of issues.

A Guide to Wage Garnishment & Federal Regulations

Are There Limitations on Wage Garnishments?

There are limits on how much of your wages can be garnished to cover an outstanding debt. According to the United States Department of Labor, garnishment amounts must be based on a person’s disposable earnings, which is the amount of income left over after taxes and other deductions are taken out. In this case, wages garnished cannot exceed 25% of an individual’s disposable earnings or any amount in excess of 30 times the federally mandated minimum wage, which is currently set at $7.25.

What Is Considered Earnings?

wage garnishmentAccording to federal law, earnings that can be garnished are considered those offered in compensation for personal services. These include wages or salaries stemming from employment, bonuses, commissions, payouts from retirement accounts, and disability benefits.

Tips can also be garnished, but only if they’re considered the regular wage of an employee. If tips exceed the current tip credit amount, or a credit is not claimed by an employer, then these can’t be touched.  

Whether you’re in search of bankruptcy assistance, need help with estate planning, or have questions regarding wage garnishment, Robert A. Schwartz has three decades of legal experience that can garner the best results possible. Visit his practice online for more information on the full range of legal services available to clients in Rochester. You can also call (585) 334-4270 to schedule your consultation.

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