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Garnishment
National Summary
What is a garnishment? When an employer receives an order from a judicial or governmental agency requiring the employer to withhold a certain sum from the wages of an employee for payment of a debt, it is called wage garnishment. There are both federal and state laws that apply to wage garnishments.
These laws set maximum amounts that can be garnished from an employee’s paycheck, and the priority of certain types of garnishments over others when an employer is faced with deductions from an employee’s paycheck for more than one garnishment. In addition, the Bankruptcy Code prohibits garnishment and tax levies once the employee has filed for bankruptcy. An employer may not discharge an employee because of wage garnishment “for any one indebtedness” in order to prevent discrimination.
Employers must also take specific steps upon receipt of a collection request from an outside agency, including answering the order and calculating applicable exemptions.
Kentucky Summary
A garnishment is an order of a court to an employer (the garnishee) to withhold a sum of money from the earnings of an employee (the debtor) for payment of a court- or agency-ordered debt. There are numerous state and federal laws pertaining to the procedure. Where state law is more restrictive than federal law (i.e., protects more of the employee's salary from garnishment), then state law will govern.

Related Topics
Resources
TopicTypeTitleDateState
11023analysis.aspxGarnishmentAnalysis Garnishment  National
12410analysis.aspxGarnishmentAnalysis Garnishment  Kentucky
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