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In today’s economy, employers are receiving orders to garnish employee wages on an increasingly frequent basis. Causing even bigger headaches are situations in which multiple garnishments are received for the same employee. For example, it is not unusual for an employee to be subject to both a defaulted student loan and a child support order at the same time. And, if a garnishment order is ignored or interpreted incorrectly, your Company could be liable for your employee’s debt, in addition to legal fees and sometimes penalties! On the other hand, you could be obligated to repay your employee if you withhold too much!
So what’s an employer to do to minimize liability and ensure compliance?