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Wage assignment and employers’ responsibilities

Business Management Daily Editors

Tough economic times raise some tricky HR issues—for example, when an employee’s financial straits begin to affect his employer.

Must we honor a payday loan wage assignment?

Q. An employee borrowed money from a payday loan service at a very high interest rate that I feel is unfair. The payday loan service sent me a “wage assignment” notice and told me that our company must withhold money from his paychecks.  What is a wage assignment, and does our company actually have to honor it? A. A wage assignment is a document that allows a creditor to attach part of the employee’s wages if the employee fails to pay a specific debt. The creditor does not have to obtain a judgment in a court proceeding before requesting payment. Under the Illinois Wage Assignment Act (740 ILCS 170), private employers are obligated to honor a creditor’s properly served demand for a valid wage assignment, unless an employee presents a timely, valid , written defense to the wage assignment.

What constitutes a valid assignment?

Q. How can I tell if a wage assignment is valid? How long is it valid? A. A valid wage assignment document must have the words “Wage Assignment” printed or written in boldface letters of not less than ¼ inch in height at the head of the wage assignment and one inch above or below the line where the employee signs the assignment. The employee must have signed the document in person, and the document must show the date of execution, the employee’s Social Security number, the name of the employer at the time of execution, the amount of money loaned or the price of the articles sold or other consideration given, the rate of interest or time-price differential to be paid, if any, and the date on which such payments are due. A wage assignment is valid for no more than three years after the employee signs it and the employer’s name appears on it. If the employee changes jobs, the wage assignment is valid for two years, even though the new employer’s name does not appear on the assignment.

Handling wage assignments

Q. How does the wage assignment process start? A. Assuming that the wage assignment document complies with the formal requirements, the creditor must serve “demand to withhold” on the employer. The demand is valid only if:

The employee has defaulted on the debt secured by the assignment for more than 40 days, and the default has continued to the date of the demand.

The demand contains a correct statement of the amount the employee is in default, and the creditor provides an original or a photocopy of the assignment to the employer.

The creditor has served a “notice of intention to make the demand” upon the employee, with a copy to the employer, by registered or certified mail not less than 20 days before serving the demand.

Putting on the brakes

Q. Can an employee stop the wage assignment process? A. The employee does have a right to contest the demand. If an employee has a legal defense to the wage assignment, the employee may—within 20 days after receiving a notice of demand or within five days after the employer is served with the demand—notify the employer, in writing, of any defense to the wage assignment and send a copy of the written defense to the creditor by registered or certified mail.   As a result, the employee’s wages are not subject to a demand served by the creditor unless the employer receives a copy of a subsequent written agreement between the creditor and the employee authorizing such payments. Similarly, if the creditor receives a copy of the defense prior to serving its demand upon the employer, the creditor may not serve the demand upon the employer.  Whether the employee’s defense is legally valid is not an issue the employer must resolve. Instead, the employee and the creditor may attempt to reach another agreement or the creditor may simply bring a separate lawsuit against the employee to collect an outstanding debt. 

BP Handbook D

Calculating the wage assignment payment

Q. How much must the employer withhold—and when? A. The employer must begin payment to the creditor no sooner than five business days after service of such a demand.  The employer must withhold the lesser of:

15% of weekly gross wages

The amount by which the disposable earnings for a week (pay remaining after federal and state taxes, Social Security deductions and any other amounts required by law to be withheld, including required retirement contributions) exceed 45 times the federal minimum wage, unless a notice of defense is received within that five-day period.

The employer shall be paid a fee of $12 for each wage assignment. That $12 is credited against the debt.

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What Is Wage Assignment?

Definition and example of wage assignment, how wage assignment works, wage assignment vs. wage garnishment.

10’000 Hours / Getty Images

A wage assignment is when creditors can take money directly from an employee’s paycheck to repay a debt.

Key Takeaways

  • A wage assignment happens when money is taken from your paycheck by a creditor to repay a debt.
  • Unlike a wage garnishment, a wage assignment can take place without a court order, and you have the right to cancel it at any time.
  • Creditors can only take a portion of your earnings. The laws in your state will dictate how much of your take-home pay your lender can take.

A wage assignment is a voluntary agreement to let a lender take a portion of your paycheck each month to repay a debt. This process allows lenders to take a portion of your wages without taking you to court first.

Borrowers may agree to allow a lender to use wage assignments, for example, when they take out payday loans . The wage assignment can begin without a court order, although the laws about how much they can take from your paycheck vary by state.

For example, in West Virginia, wage assignments are only valid for one year and must be renewed annually. Creditors can only deduct up to 25% of an employee’s take-home pay, and the remaining 75% is exempt, including for an employee’s final paycheck.

If you agree to a wage assignment, that means you voluntarily agree to have money taken out of your paycheck each month to repay a debt.

State laws govern how soon a wage assignment can take place and how much of your paycheck a lender can take. For example, in Illinois, you must be at least 40 days behind on your loan payments before your lender can start a wage assignment. Under Illinois law, your creditor can only take up to 15% of your paycheck. The wage assignment is valid for up to three years after you signed the agreement.

Your creditor typically will send a Notice of Intent to Assign Wages by certified mail to you and your employer. From there, the creditor will send a demand letter to your employer with the total amount that’s in default.

You have the right to stop a wage assignment at any time, and you aren’t required to provide a reason why. If you don’t want the deduction, you can send your employer and creditor a written notice that you want to stop the wage assignment. You will still owe the money, but your lender must use other methods to collect the funds.

Research the laws in your state to see what percentage of your income your lender can take and for how long the agreement is valid.

Wage assignment and wage garnishment are often used interchangeably, but they aren’t the same thing. The main difference between the two is that wage assignments are voluntary while wage garnishments are involuntary. Here are some key differences:

Once you agree to a wage assignment, your lender can automatically take money from your paycheck. No court order is required first, but since the wage assignment is voluntary, you have the right to cancel it at any point.

Wage garnishments are the results of court orders, no matter whether you agree to them or not. If you want to reverse a wage garnishment, you typically have to go through a legal process to reverse the court judgment.

You can also stop many wage garnishments by filing for bankruptcy. And creditors aren’t usually allowed to garnish income from Social Security, disability, child support , or alimony. Ultimately, the laws in your state will dictate how much of your income you’re able to keep under a wage garnishment.

Creditors can’t garnish all of the money in your paycheck. Federal law limits the amount that can be garnished to 25% of the debtor’s disposable income. State laws may further limit how much of your income lenders can seize.

Illinois Legal Aid Online. “ Understanding Wage Assignment .” Accessed Feb. 8, 2022.

West Virginia Division of Labor. “ Wage Assignments / Authorized Payroll Deductions .” Accessed Feb. 8, 2022.

U.S. Department of Labor. “ Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) .” Accessed Feb. 8, 2022.

Sacramento County Public Law Library. “ Exemptions from Enforcement of Judgments in California .” Accessed Feb. 8, 2022.

District Court of Maryland. “ Wage Garnishment .” Accessed Feb. 8, 2022.

Garnishment Laws

  • How to Obtain a Garnishment Order
  • How to Stop Wage Garnishment?
  • Garnishment Laws Blog

Wage Assignments in Consumer and Other Contracts

Most of the time an employee knows when his wages are about to be garnished: He is sued, the court enters a judgment against him for the amount owed, and thereafter a wage garnishment order ensues. The employee has plenty of time to plan for it, forewarn his employer, and make the process as palatable as possible, should a repayment arrangement not be possible.

Not so for many of the so-called “voluntary" wage assignments that are being included in consumer credit and loan agreements with greater regularity than ever before. These provisions allow the creditor to skip the formality, delay, and expense of the legal process altogether, and go straight to the employer with a demand for garnishment.

An employee typically does not learn about this kind of garnishment until after the garnishment has taken place and he notices his pay check is short.

Difference between Wage Assignments and Wage Garnishment Orders

Technically speaking, a wage assignment is a provision in a private agreement — often a consumer credit agreement like the ones used in buying a refrigerator.

The “wage assignment" provision assigns the borrower’s future wages to the creditor in the event of default by non-payment. If a default occurs, the creditor in effect forecloses on the security (the wages) by sending a garnishment demand to the employer. Usually, the letter is written by the creditor’s attorney or billing department.

To enforce a wage assignment, no court process is involved. That’s the nature of the provision. It says no court process need be involved and authorizes the creditor to skip the time and expense of court and go straight to the employer. It also, of necessity, eliminates the debtor’s opportunity to challenge the debt in court or seek limitations on the garnishment.

Most garnishments are based on a judgment or court order and constitute official orders of the court. The request for garnishment is made to the court and the court grants the request by issuing a garnishment order. This is the case for most wage garnishments for child support.

Types of Voluntary Wage Assignments

Voluntary wage assignments, often simply called “wage assignments," are those that the indebted employee enters into by agreement. He may agree to it by signing a consumer credit or loan agreement, or he may agree to repay a debt by entering into a repayment agreement with a wage assignment provision.

The typical wage assignment provision allows the employer to take the employee’s future wages as security for the debt involved. In the event of default or nonpayment, it authorizes the creditor to go straight to the employer with a demand for wage garnishment, no court filing or judgment required.

Considering these wage assignments as “voluntarily" is a stretch. Most borrowers don’t read the fine print in consumer contracts and loan papers, have no bargaining strength to oppose these provisions even if they want to, and don’t learn about the wage assignment until it is too late to do anything about it.

Nonetheless, unlike a court order, they do have a voluntary component in that the borrower chose to obtain the credit and afterwards to use it to buy goods or services or receive cash.

Federal Garnishment Law Does Not Protect Wage Assignments

In 1970, Congress passed Title III of the Consumer Credit Protection Act. Under that Act, the federal government took control over wage garnishment proceedings for the first time.

Generally speaking, this law limits the extent to which earnings can be garnished to 25% of “disposable earnings" or to amounts above 30 times minimum wage, whichever is less. It also prohibits the employer from terminating an employee for any wage garnishment based on a single debt.

The definition of “disposable earnings" is key to the determination of the maximum allowed garnishment. “Disposable earnings" means earnings after reduction for legally-required deductions like federal, state and local taxes, the employee’s share of State Unemployment Insurance and Social Security, and Worker’s Compensation.

Importantly, the permitted deductions DO NOT include sums withheld as part of a voluntary wage assignment; as such deductions are not legally required. What this means is that wage garnishment protections do not take into account the effect of voluntary wage assignments. Also, they do not apply to real estate purchases (which have specific contracts).

Furthermore, because wage assignments are not technically considered garnishment under federal law, an employer can lawfully terminate an employee for a single garnishment based on a voluntary wage assignment. Put another way, the anti-termination protections of federal law do not apply to wage assignments.

State Law Limitations on Wage Assignments

Many states have passed laws making wage assignments invalid, due to their intrusive and potentially devastating effect on borrowers. Some states bar any form of wage assignment, while others limit wage assignments to only child or spousal support.

Still others require the written consent of both spouses, or the execution of an entirely separate document addressing the assignment (so as to prohibit it from being buried in the fine print). In all cases, the employer need not comply with an illegal wage assignment, and often would be legally liable for doing so.

Needless to say, the field of voluntary wage assignments is a complicated one. Consulting with an experienced labor and employment, debtor-creditor, and/or consumer counsel is an important part of properly navigating this area of employment.

Citations/references

Federal statute: title iii, consumer credit protection act (ccpa), 15 usc, §§1671 et seq., code of federal regulations: 29 cfr part 870, u.s. wage and hour division: fact sheet #30 – the federal wage garnishment law, consumer credit protection act’s title iii (ccpa), field operations handbook – 02/09/2001, rev. 644, chapter 16, title iii – consumer credit protection act (wage garnishment), summary of state laws on garnishment: http://www.nolo.com/legal-encyclopedia/free-books/employee-rights-book/chapter2-9.html.

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Wage Assignments and Garnishments: What Finance Leaders Need to Know

Jennifer S Kiesewetter Esq

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Wage assignments and garnishments practices: Here are three things finance leaders must internally audit.

Wage assignments and wage garnishments are not the same. Each reflects a different process subject to different applicable laws. While there is always potential for a DOL Wage and Hour Division audit, financial leaders should internally audit their own processes to ensure compliance and efficiency while minimizing stress and anxiety for the employer and the employee. Here are three things to consider when conducting those audits.

1. Compliance

Wage assignments and wage garnishments differ in many ways. In fact, a wage assignment is not a garnishment. A wage assignment is a voluntary agreement between the employee and creditor where an amount is withheld from the employee's paycheck to satisfy a debt owed to a third-party recipient, whereas under a wage garnishment, the amount withheld from the employee's check is typically obtained through a court order initiated by the creditor.

Adding to the compliance challenge, there are several different types of wage garnishments, often with differing rules for each. For example, child support, bankruptcy and student loans are all types of wage garnishments. Wage garnishments for child support obligations are substantially governed by state law, which varies state to state, whereas garnishments for a bankruptcy plan are governed by federal law and garnishments for student loan debts are governed by either state or federal law, depending on the financing.

2. Efficiency

Businesses must be able to confirm when wage garnishments are initiated, when they cease and when more than one applies and in what order. This is what can make these withholdings complex — and messy. By having trackable systems in place, efficiency can be achievable.

3. Minimizing Stress and Anxiety

According to Workforce , wage garnishments can affect employee morale. Having wages withheld from paychecks may be a negative employee experience, especially when the employer has to get involved. For employers that are preparing audit-ready workplaces, these organizations face their own stress by potentially facing liability for noncompliance with respect to wage garnishment withholdings.

Having prudent processes in place may not only help with compliance and efficiency for the employer, but can also help alleviate stress for both the employee and the employer.

Learn about the ADP SmartCompliance® Wage Garnishment Module .

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Florida Statutes 516.17 – Assignment of wages, etc., given to secure loans

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Involuntary and Voluntary Pay Deductions: Florida

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert , The Payroll Advisor

  • An employer that receives an income withholding order for child support must begin withholding no later than the first payday date that occurs more than 14 days after the date the order was served on the employer. The amounts withheld must be remitted within two days after payday. Special rules apply to interstate income withholding orders. Employers are subject to penalties for failure to withhold and remit child support. Federal withholding limits apply. See Child Support Withholding .
  • When an employee is subject to a creditor garnishment to repay a debt, the employer will be required to periodically withhold and pay to the court that issued the judgment a portion of the employee's salary or wages as it becomes due. Creditor garnishments continue until the amount of the judgment is satisfied, or until otherwise provided by court order. An employer that is served with a writ of garnishment must answer and submit certain questions to the issuing court within 20 days. Federal withholding limits apply. See Creditor Garnishment Withholding .
  • Voluntary wage assignments made by employees are invalid in Florida. See Voluntary Wage Assignments .

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Florida Wage Garnishment

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What Is a Wage Garnishment?

A Florida wage garnishment is a court order that allows a creditor to take a portion of a debtor’s wages to satisfy a judgment. A wage garnishment is used when the debtor does not voluntarily pay a judgment balance.

A creditor can garnish 25% of the debtor’s salary to satisfy an unpaid judgment. But wages are exempt from garnishment if the debtor qualifies as the head of household. A head of household is someone who provides more than 50% of the financial support for a family member.

How Does Wage Garnishment Work?

Wage garnishment is a special type of garnishment provided by  Florida Statutes applicable to a debtor’s earnings. Earnings means salary, hourly wages, bonuses, commissions, and other forms of employee compensation. A wage garnishment does not apply to independent contractor payments.

The first step is for a judgment creditor to file a Motion for a Continuing Writ of Garnishment. The motion is filed in the same court and judge that issued the underlying money judgment.

The creditor files the garnishment motion  ex-parte , which means without advance notice. The judge will ordinarily grant the writ of continuing wage garnishment. Then, the creditor sends the continuing garnishment order to your employer.

Once an employer receives the garnishment order, the creditor must send you a copy of the court papers, including the creditor’s garnishment motion, the court’s garnishment order, and a claim of exemption form.

An employer must apply a wage garnishment immediately and deduct appropriate portions of your earnings. The employer has 20 days to file an answer to the writ and serve a copy of that answer to the creditor and employee.

Some debts bypass the above process. If you owe money for income taxes, child support, or student loans, your wages can be garnished without a court order.

Wage Garnishment Laws

The wage garnishment law in Florida is found in Chapter 77 of the Florida Statutes . Here are the rules:

  • The amount that can be garnished from wages is limited to the lesser of 25% of disposable earnings or the amount by which a debtor’s weekly income exceeds 30 times the federal minimum wage.
  • If the debtor provides more than half the support for a child or other dependent, they are considered a “head of family.” They may be eligible for an exemption that reduces or eliminates wage garnishment.
  • Certain types of debts, like child support, alimony, taxes, and student loans, can take priority over other debts in wage garnishment.
  • You can contest a wage garnishment in court by claiming exemptions or making procedural arguments.

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How to Stop a Wage Garnishment

To stop wage garnishment, a judgment debtor must (1) review the writ for procedural mistakes, (2) file a claim of exemption, (3) gather all documents in support of the claimed exemption, and (4) attend the final hearing on the exemption.

The head of household exemption is the most common exemption from a continuing wage garnishment. You must use your recent bank statements, W2 statements, tax returns, and other documents to show that you provide more than 50% support to a dependent or eligible person.

Florida wage garnishment laws are strictly enforced. The  garnishment statute  requires the creditor to follow complicated requirements and procedures, including several required notices and deadlines. You may file a motion to dissolve a garnishment for any procedural defect in the creditor’s administration of the writ.

Tip: Sometimes a creditor will voluntarily dismiss a wage garnishment if you or your attorney convinces the creditor judgment debtor may be able to spend down assets that cannot be protected while growing protected assets.

How Long After a Judgment Can Wages Be Garnished?

A judgment in Florida is enforceable for 20 years. Therefore, a judgment debtor’s wages can be garnished for the entire 20-year lifetime of the judgment.

A single writ of garnishment served on your employer will garnish all your salary and wages as they become payable in the future until the judgment is satisfied, you leave your employment, or the garnishment is dissolved.

Garnishment writs directed at other debts or compensation, such as rents or payments to an independent contractor, apply only to payments due on the day the writ is served upon the garnishee. There are no continuing garnishments against any debts other than employment earnings.

How long after a judgment can wages be garnished?

Exemptions to Wage Garnishment

The most common exemption to garnishment is the head of household exemption. Other exemptions include social security, worker’s compensation, pension payment, life insurance benefits, and disability income.

Wage garnishment is not permitted against a debtor who qualifies as the head of household. Head of household law is complex . A debtor who receives notice that their wages have been garnished must prove entitlement to the head-of-household exemption.

These Florida garnishment exemptions are provided for in  Section 222.11 of the Florida Statutes . Other exemptions could apply, but they are trickier to assert.

In addition to claiming any applicable exemptions, you must see if the creditor has properly followed Florida wage garnishment procedures. The garnishment laws give the creditor strict deadlines for providing certain notices and other documents to you as it tries to garnish your wages. If it misses the deadlines, you might have a good reason for the court to dissolve the continuing writ of garnishment.

A garnishment lawyer will typically help you identify any mistakes and assert your defenses in a motion to dissolve the garnishment.

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Head of Household Exemption Form

The head of household exemption form is another name for the Claim of Exemption form. You claim a head of household exemption from wage garnishment on a Claim of Exemption form provided by the garnishing creditor.

After your wages are garnished, you mail the exemption form to the court and then wait for the court to schedule a hearing on the head-of-household exemption.

Keep in mind that these exemptions are not automatic. If you do not properly claim and assert the exemptions in your defense, the creditor can continue to garnish your wages.

Some people think they can pre-empt a wage garnishment by asserting their head of household exemption in advance. Florida law does not permit this. You can only claim a head of household exemption after the creditor has sought to garnish your wages.

Important: While a head of household can claim exemption to wage garnishment in Florida, the Claim of Exemption form must be filed within the time allowed or else the exemption is lost.

Waiver of Head of Household Exemption

A debtor may waive the head of household exemption at the beginning of a commercial relationship by signing a waiver form . Many lenders customarily require new credit customers to waive their head of household protection.

Borrowers should be aware of the consequences of exposing otherwise exempt wages to garnishments in the event of credit default.

Federal Limits to Garnishment

Under federal law, garnishments cannot be for more than 25% of your disposable income. If there are multiple wage garnishments, the combined total of all garnishments cannot be more than 25%. Your disposable income means your take-home pay after taxes. Voluntary withholding for retirement accounts is included in disposable earnings.

Debtors who are not head of household or who have waived their head of household garnishment protection may have their wages garnished only up to limits allowed by federal consumer law.

Federal law allows greater amounts to be garnished to enforce tax debts or court-ordered domestic support obligations. There is a 50 percent ceiling for domestic support garnishments.

This means that a former spouse seeking to collect alimony or child support payments can garnish up to 50% of the paying spouse’s disposable income. The 50% alimony and support limit must include any disposable income already garnished by the paying spouse’s other judgment creditors. An additional 5% can be garnished to collect alimony more than 12 weeks past due.

There are different garnishment limits for debts owed to the United States, such as delinquent student loans. For example, federal agencies can garnish 15% of a debtor’s disposable wages to pay delinquent non-tax debts owed to a federal agency, including student loan debt.

Federal law protects the employment of people subject to wage garnishment. Federal law prohibits an employer from firing an employee whose earnings are subject to garnishment for any one debt, regardless of the number of levies made or proceedings brought to collect that one debt. The same law does not prohibit discharge because an employee’s earnings are separately garnished for two or more debts.

Filing a claim of exemption in Florida in response to a continuing writ of garnishment

Dissolving a Wage Garnishment When Exemption Circumstances Change

Suppose you were not  head of household  when the wage garnishment judgment was entered. However, two years after entry of the garnishment judgment, you have a child and provide most of the financial support for that child.

The Florida garnishment statute  only outlines a procedure by which you can assert the head of household exemption  before  the writ of garnishment is reduced to a judgment against the garnishee. The statute does not provide any mechanism for filing a claim of exemption after the garnishment has been reduced to judgment.

In this circumstance, you could file a motion for relief from judgment under  Rule 1.540 of the Florida Rules of Civil Procedure . The rule explains that a person can ask the Court for relief from a judgment (including a garnishment judgment). See, for example,  Barnett Bank of South Florida, N.A. v. American Medical Exp. Corp. , 671 So. 2d 819 (Fla. 3d DCA 1996);  Antuna v. Dawso n, 459 So. 2d 1114, 1118 (Fla. 4th DCA 1984).

Frequently Asked Questions

How long do wage garnishments last.

A continuing wage garnishment lasts until the judgment is paid in full. If you stop working for that employer, the creditor must file a new wage garnishment at your new job.

How do you stop a wage garnishment?

You can stop a wage garnishment by filing a claim of exemption. The wages of a head of household are exempt from garnishment in Florida. You can also stop a wage garnishment if the creditor has deviated from strict garnishment procedures.

What is the statute of limitations for wage garnishment?

A creditor can garnish your wages at any time during the life of the judgment, which is 20 years.

What happens to a wage garnishment if you leave your job?

If you leave your job, the creditor must apply for a new wage garnishment. A wage garnishment only works on the employer named in the garnishment proceeding.

Jon Alper

About the Author

Jon Alper is a nationally recognized attorney specializing in asset protection planning. He has over 35 years of experience and graduated with honors from the University of Florida Law School.

Jon has been recognized as a legal expert by media outlets such as the New York Times and the Wall Street Journal . He has helped thousands of clients protect their assets from creditors.

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Voluntary Wage Assignments and Why You Should Avoid Them At All Costs

You would never hand over your paycheck to a creditor, would you?  Of course if you were under threat or order by a court you may hand over your paycheck; but never voluntarily. Right? Well, surprisingly many debtors do just that when they agree to “voluntary wage assignments.” A voluntary wage assignment is an agreement between a creditor and debtor that says the lender can deduct a certain amount of money from the debtor’s paycheck to repay a loan.

Voluntary wage assignments are commonly used by payday lenders. Surprised? You shouldn’t be.  Payday lenders understand that the reason debtors use their “services” is because they are financially strapped and desperate for cash.  But because their interest rates and fees are astronomically high, most debtors experience “payment shock” and may try to avoid paying them when the bill is due. So to protect their interests in the loan, payday lenders are now using voluntary wage assignments to increase their chances of getting paid.

How Voluntary Wage Assignment  Works

A voluntary wage assignment works just like a wage garnishment , except that the debtor has agreed to it. If a debtor defaults on the payday loan, the lender can then garnish the debtor’s wages without going to court. Once a debtor defaults on their payday loan, the lender will send the debtor a notice informing them that they plan to implement the voluntary wage assignment (i.e. wage garnishment).  This usually happens 20 days before the wage assignment notice is sent to the employer.   A wage assignment is valid for up to 3 years . In other words, the payday lender could technically garnish your wages for 3 years or until the loan is repaid.

For obvious reasons, agreeing to a wage assignment isn’t smart. You give the payday lender access to your wages and make it easier for them when you are not legally required to do so.  Signing a voluntary wage assignment can place you and your family in dire straits, if the lender garnishes wages that you need for your mortgage/rent, food and medical care. If you have signed a voluntary wage garnishment, you can revoke the agreement by sending the lender a letter.  Remember, Payday Loans are Dischargeable in Bankruptcy

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Wage Garnishment & Assignment: 4 must knows for employers

By Julie Farraj

Feb. 15, 2017

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Proper management of wage garnishment can be especially crucial to growing businesses because as their hiring increases, they may also be inadvertently increasing their garnishment liability. That’s why it’s important for an employer to remember four things can help appropriately and accurately process wage garnishments while remaining compliant.

1. All garnishments are not the same.

Here’s a basic wage withholding definition: When an employee fails to repay a debt, a wage withholding court order can be issued against the employee’s earnings to satisfy that debt. This court order — also called a wage garnishment — requires the employer to withhold a portion of the employee’s wages and forward them to a third party. Wage garnishment orders also can be issued by government agencies such as the IRS, state tax agencies and the U.S. Department of Education.

Simple, right? A business receives an order about one of its employees and refers it to its payroll department to process by withholding the appropriate wages and forwarding it to the proper recipient.

There are six common types of wage garnishment. They are:

Child support garnishment comprises by far the highest volume of orders employers process, and, while some of the laws are very standardized, the law can vary by state.

Creditor garnishments are debts that occur when a person is delinquent on consumer payments (e.g. credit card debt). The creditor may take the debtor to court and seek a wage withholding order for the outstanding debt.

Bankruptcy orders . Based on research from the American Bankruptcy Institute , 97 percent of all bankruptcies are personal filings rather than business filings.

Student loans may be collected by the U.S. Department of Education, which may contract with collection agencies to enforce and collect the defaulted loans.

Tax levy garnishments can be issued at the federal, state or local level. Each state differs in its requirements and those laws may differ from federal levies.

Wage assignment occurs when an employee voluntarily agrees to have money withheld from his or her wages. Wage assignments are governed by state law and do not involve a court order. Since they are voluntary and the employee specifies the amount to withhold, they do not fall under the requirements of the Federal Consumer Credit Protection Act.

It’s important that employers keep in mind the type of debt owed, the party collecting it, and the laws applicable to that debt. Knowing which laws, rules, and regulations apply and keeping current on them when processing wage garnishments can be challenging for employers, and, if done incorrectly, may expose employers to various liabilities and penalties.

In addition, the six types of wage garnishments noted above are the most common wage garnishments; employers may receive other less common types of wage garnishments. It’s the employer’s responsibility to comply with and make sure all orders are processed in a timely manner and correctly whether or not they are familiar.

2. Wage garnishment can affect employee productivity and morale.

Most employers recognize that wage garnishment has a direct impact on employees. However, this impact can extend beyond their paychecks. Processing garnishments is not as straightforward as simply withholding wages from an employee’s paycheck and sending a payment. The process is far from simple and can be complicated by myriad emotions.

Employees often find it humiliating because the courts have intervened and employers have become involved in their private struggles.

Employees in this position may feel that they’re now working for the institutions to which they’re indebted rather than for themselves and their futures. Stress and anxiety are often natural extensions of the garnishment process.

An affected employee’s anxiety could show itself through decreased productivity or a lack of motivation. Employers can help affected employees and potentially decrease future garnishments by providing financial wellness training and counseling, as well as tax education, to help employees manage debt.

3. Wage garnishment can affect an employer’s finances and business efficiency.

Employees aren’t the only ones affected by wage garnishment. Employers expose themselves to financial and legal risk when they incorrectly garnish an employee’s wages, fail to file in a timely way, file a defective response, fail to follow specific requirements when sending payments, or make other missteps with a garnishment. Mishandling a garnishment can lead to a judgment against the employer for the entire amount of the employee’s debt, a lawsuit from the creditor or the employee, or other costs or penalties that the employer didn’t anticipate or budget for.

In the instance of garnishments for child support, employers could potentially feel the impact of laws designed to restrict travel. For instance, the Social Security Act was amended in 1997 with a sub-section that established the denial, revocation, or restriction of U.S. passports if the non-custodial parent has child support arrears of $2,500 or more. Additionally, some state agencies have the authority to deny or revoke drivers’ and professional licenses for past-due child support obligations .

If your business requires employees to travel internationally or employs drivers, these laws could impact an employee’s ability to do his or her job effectively and, by extension, impact the efficiency of your business.

Another current area of focus that could impact employers is in the creditor garnishment arena. Currently, the American Payroll Association is working with the Uniform Law Commission to establish a standardized processing for creditor garnishments through the Uniform Wage Garnishment Act, which proposes to standardize the wage-garnishment process for employers, employees and creditors. Currently, state laws differ significantly in their requirements regarding wage garnishment, from the beginning to the end of the garnishment, and are often outdated. This means businesses that operate in multiple states must identify and abide by these different legal requirements, which can potentially lead to processing errors, confusion, inefficiency and noncompliance.

Companies can help manage these challenges if they become familiar with garnishment laws and guidance from agencies such as the Federal Office of Child Support Enforcement, develop reliable and timely procedures for garnishment processing and ensure that policies are administered fairly for all employees facing a wage garnishment.

It may be useful to develop tools, resources and strong contacts with agencies, courts and garnishors. Staying close to these agencies may help your business remain aware of major changes to wage garnishment laws.

Consider participating in state and federally initiated pilot projects. These programs are valuable opportunities to positively build relationships, influence initiatives and provide needed feedback. Make sure you have established a way to monitor legislation that could affect garnishment processing.

Other steps an employer can take include participating with committees, attending conferences regarding wage withholding, and leveraging other contacts you’ve developed with the agencies, those imposing wage garnishments, or other employers.

4. Paper processing is the not the only option.

A study by the ADP Research Institute revealed that 7.2 percent of employees had wages garnished in 2013. Keeping pace with the proper and timely processing of wage garnishments is challenging for many businesses.

As wage garnishment volumes and laws intensify, garnishment processors have the option to use electronic funds transfer, or EFT, to save time, increase efficiency, streamline processes and potentially reduce costs.

Currently, virtually every child support state agency has the ability to accept child support payments via EFT, and some have even mandated employers to send payments electronically. Some tax levy agencies, trustees and student loan agencies also are implementing electronic payment capabilities. In addition to business efficiencies, EFT enables greater security of personally identifiable information, such as Social Security numbers.

Minnesota has passed legislation requiring employers to electronically file their response to a state tax garnishment summons with the state tax agency, and Wayne County Court in Michigan is piloting the option of electronic responses.

Electronic income withholding orders are already very popular. These enable states to electronically distribute income withholding orders and employers to electronically accept or reject them.

Clearly, wage garnishment can have a profound effect on the employee who is being garnished, as well as the employer who must implement the garnishment. It’s important for businesses of all sizes to understand the different types of wage garnishment, familiarize themselves with the laws governing them, and learn ways to accurately and efficiently process them.

Using best practices can help streamline an employer’s responsibilities and ease the potential anxiety an employee may feel with this sometimes-necessary workforce issue.

Julie Farraj is vice president of Garnishment Services for ADP Added Value Services. Comment below or email [email protected].

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WAGE AND HOUR DIVISION

UNITED STATES DEPARTMENT OF LABOR

Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA)

Revised October 2020

This fact sheet provides general information concerning the CCPA’s limits on the amount that employers may withhold from a person’s earnings in response to a garnishment order, and the CCPA’s protection from termination because of garnishment for any single debt.

Wage Garnishments

A wage garnishment is any legal or equitable procedure through which some portion of a person’s earnings is required to be withheld for the payment of a debt. Most garnishments are made by court order. Other types of legal or equitable procedures for garnishment include IRS or state tax collection agency levies for unpaid taxes and federal agency administrative garnishments for non-tax debts owed to the federal government.

Wage garnishments do not include voluntary wage assignments – that is, situations in which employees voluntarily agree that their employers may turn over some specified amount of their earnings to a creditor or creditors.

Title III of the CCPA’s Limitations on Wage Garnishments

Title III of the CCPA (Title III) limits the amount of an individual’s earnings that may be garnished and protects an employee from being fired if pay is garnished for only one debt. The U.S. Department of Labor’s Wage and Hour Division administers Title III, which applies in all 50 states, the District of Columbia, and all U.S. territories and possessions. Title III protects everyone who receives personal earnings.

The Wage and Hour Division has authority with regard to questions relating to the amount garnished or termination. Other questions relating to garnishment should be directed to the court or agency initiating the garnishment action. For example, questions regarding the priority given to certain garnishments over others are not matters covered by Title III and may be referred to the court or agency initiating the action. The CCPA contains no provisions controlling the priorities of garnishments, which are determined by state or other federal laws. However, in no event may the amount of any individual’s disposable earnings that may be garnished exceed the percentages specified in the CCPA.

Definition of Earnings

The CCPA defines earnings as compensation paid or payable for personal services , including wages, salaries, commissions, bonuses, and periodic payments from a pension or retirement program. Payments from an employment-based disability plan are also earnings.

Earnings may include payments received in lump sums , including:

  • commissions;
  • discretionary and nondiscretionary bonuses;
  • productivity or performance bonuses;
  • profit sharing;
  • referral and sign-on bonuses;
  • moving or relocation incentive payments;
  • attendance, safety, and cash service awards;
  • retroactive merit increases;
  • payment for working during a holiday;
  • workers’ compensation payments for wage replacement, whether paid periodically or in a lump sum;
  • termination pay ( e.g. , payment of last wages, as well as any outstanding accrued benefits);
  • severance pay; and,
  • back and front pay payments from insurance settlements.

In determining whether certain lump-sum payments are earnings under the CCPA, the central inquiry is whether the employer paid the amount in question for the employee’s services .If the lump-sum payment is made in exchange for personal services rendered, then like payments received periodically, it will be subject to the CCPA’s garnishment limitations. Conversely, lump-sum payments that are unrelated to personal services rendered are not earnings under the CCPA.

For employees who receive tips, the cash wages paid directly by the employer and the amount of any tip credit claimed by the employer under federal or state law are earnings for the purposes of the wage garnishment law. Tips received in excess of the tip credit amount or in excess of the wages paid directly by the employer (if no tip credit is claimed or allowed) are not earnings for purposes of the CCPA.

Limitations on the Amount of Earnings that may be Garnished (General)

The amount of pay subject to garnishment is based on an employee’s “disposable earnings,” which is the amount of earnings left after legally required deductions are made . Examples of such deductions include federal, state, and local taxes, and the employee’s share of Social Security, Medicare and State Unemployment Insurance tax. It also includes withholdings for employee retirement systems required by law.

Deductions not required by law – such as those for voluntary wage assignments, union dues, health and life insurance, contributions to charitable causes, purchases of savings bonds, retirement plan contributions (except those required by law) and payments to employers for payroll advances or purchases of merchandise – usually may not be subtracted from gross earnings when calculating disposable earnings under the CCPA.

Title III sets the maximum amount that may be garnished in any workweek or pay period, regardless of the number of garnishment orders received by the employer. For ordinary garnishments ( i.e. , those not for support, bankruptcy, or any state or federal tax), the weekly amount may not exceed the lesser of two figures: 25% of the employee’s disposable earnings, or the amount by which an employee’s disposable earnings are greater than 30 times the federal minimum wage (currently $7.25 an hour).

Therefore, if the pay period is weekly and disposable earnings are $217.50 ($7.25 × 30) or less, there can be no garnishment. If disposable earnings are more than $217.50 but less than $290 ($7.25 × 40), the amount above $217.50 can be garnished. If disposable earnings are $290 or more, a maximum of 25% can be garnished. When pay periods cover more than one week, multiples of the weekly restrictions must be used to calculate the maximum amounts that may be garnished. The table and examples at the end of this fact sheet illustrate these amounts.

As discussed below, these limitations do not apply to certain bankruptcy court orders, or to garnishments to recover debts due for state or federal taxes, and different limitations apply to garnishments pursuant to court orders for child support or alimony.

Limitations on the Amount of Earnings That May be Garnished for Child Support and Alimony

Title III also limits the amount of earnings that may be garnished pursuant to court orders for child support or alimony. The garnishment law allows up to 50% of a worker’s disposable earnings to be garnished for these purposes if the worker is supporting another spouse or child, or up to 60% if the worker is not. An additional 5% may be garnished for support payments more than l2 weeks in arrears.

Exceptions to Title III’s Limitation on Wage Garnishments

The wage garnishment law specifies that its limitations on the amount of earnings that may be garnished do not apply to certain bankruptcy court orders, or to debts due for federal or state taxes.

If a state wage garnishment law differs from Title III, the law resulting in the lower amount of earnings being garnished must be observed.

Non-Tax Debts Owed to Federal Agencies

The Debt Collection Improvement Act authorizes federal agencies or collection agencies under contract with them to garnish up to 15% of disposable earnings to repay defaulted debts owed to the U.S. government. As of December 20, 2018, the Higher Education Act authorizes the Department of Education’s guaranty agencies to garnish up to 15% of disposable earnings to repay defaulted federal student loans. Such withholding is also subject to the provisions of Title III of the CCPA, but not state garnishment laws. Unless the total of all garnishments exceeds Title III’s limits on garnishment, questions regarding such garnishments should be referred to the agency initiating the withholding action.

EXAMPLES OF AMOUNTS SUBJECT TO GARNISHMENT

The following examples illustrate the statutory tests for determining the amounts subject to garnishment, based on the current federal minimum wage of $7.25 per hour.

  • An employee’s gross earnings in a particular week are $263. After deductions required by law, the disposable earnings are $233.00. In this week, $15.50 may be garnished, because only the amount over $217.50 may be garnished where the disposable earnings are less than $290.
  • An employee receives a bonus in a particular workweek of $402. After deductions required by law, the disposable earnings are $368. In this week, 25% of the disposable earnings may be garnished. ($368 × 25% = $92).
  • An employee paid every other week has disposable earnings of $500 for the first week and $80 for the second week of the pay period, for a total of $580. In a biweekly pay period, when disposable earnings are at or above $580 for the pay period, 25% may be garnished; $145.00 (25% × $580) may be garnished. It does not matter that the disposable earnings in the second week are less than $217.50.
  • An employee on a $400 weekly draw against commissions has disposable earnings each week of $300. Commissions are paid monthly and result in $1,800 in disposable earnings for July after already-paid weekly draws are subtracted and deductions required by law are made. Each draw and the monthly commission payment are separately subject to the law’s limitation. Thus, 25% of each week’s disposable earnings from the draw ($75 in this example) may be garnished. Additionally, 25% of the disposable earnings from the commission payment may be garnished, or $450 ($1,800 × 25% = $450).
  • An employee who has disposable earnings of $370 a week has $140 withheld per week pursuant to court orders for child support. Title III allows up to 50% or 60% of disposable earnings to be garnished for this purpose. A garnishment order for the collection of a defaulted consumer debt is also served on the employer. If there were no garnishment orders (with priority) for child support, Title III’s general limitations would apply to the garnishment for the defaulted consumer debt, and a maximum of $92.50 (25% × $370) would be garnished per week. However, the existing garnishment for child support means in this example that no additional garnishment for the defaulted consumer debt may be made because the amount already garnished is more than the amount (25%) that may be generally garnished. Additional amounts could be garnished to collect child support, delinquent federal or state taxes, or certain bankruptcy court ordered payments.

Title III Protections against Discharge when Wages are Garnished

The CCPA prohibits an employer from firing an employee whose earnings are subject to garnishment for any one debt, regardless of the number of levies made or proceedings brought to collect that one debt. The CCPA does not prohibit discharge because an employee’s earnings are separately garnished for two or more debts.

wage assignment demand notice florida

Where to Obtain Additional Information

For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).

This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

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Wage Assignment: What it Means, How it Works

wage assignment demand notice florida

What Is a Wage Assignment?

Wage assignment is the act of taking money directly from an employee's paycheck in order to pay back a debt obligation. Wage assignments may be either voluntary or involuntary, depending on the situation.

Such an automatic withholding plan may be used to pay back a variety of debt obligations, including back taxes, defaulted student loan debt, and both child and spousal support payments.

A wage assignment is typically a last resort of a lender to receive repayment from a borrower who has previously failed to pay a debt obligation. A wage assignment, when involuntary, may also be referred to as wage garnishment and requires a court order.

How Wage Assignment Works

Wage assignments are typically incurred for debts that have gone unpaid for a prolonged period of time. Wage assignments can be divided into two categories: voluntary and involuntary. Employees may sometimes opt for a voluntarily wage assignment to pay for things like union dues or to contribute to a retirement fund.

Key Takeaways

  • A wage assignment take funds directly from an employee's paycheck to pay back a debt. 
  • Wage assignments may be either voluntary or involuntary.
  • A wage assignment, when involuntary, may also be referred to as wage garnishment and requires a court order.  

Employees may even voluntarily opt into a wage assignment plan as a part of a payday loan repayment promise.

When a wage assignment is either undertaken voluntarily or mandated by a court and served to an employer, it is processed as part of an employer's payroll procedure. The employee has to do nothing, as their paycheck is decreased by the amount of the assignment, and noted on their pay stub.

Wage assignments are a valuable tool for collecting unpaid debts, but unfortunately, they may be associated with abusive lending practices .  

Wage Assignment: Voluntary

In a voluntary wage assignment, a worker asks their employer to withhold a portion of their paycheck and send it to a creditor to pay off a debt. Loan agreements may sometimes include in their terms a voluntary wage assignment clause should the borrower default on their loan.

Payday lenders often include voluntary wage assignments into their loan agreements to better their chances of being repaid. Such a lender may begin a wage assignment without a court order. Laws regarding wage assignments vary by state.

For example, in West Virginia, wage assignments are capped at 25% of a worker's take-home earnings, the employee's signature must be notarized, and agreements must be renewed annually. Under Illinois law, a lender cannot resort to wage assignment until a debt is 40 days in default. The wage assignment cannot continue for more than three years, and the worker can stop the wage assignment at any time.

Wage Assignment: Involuntary

Involuntary wage assignments require a court order and are most likely to be employed to collect spousal and child support payments that have been ordered by a court. Involuntary wage assignments may also be used to collect unpaid court fines or student loans that have been defaulted on.  

Special Considerations

Several states allow individuals to sign up for voluntary child support agreements. In such a case, both parents must agree to a plan. Once that happens, a voluntary wage assignment may begin. If a child support or welfare agency is involved, they would have to approve any plan.

U.S. Department of Labor. " Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) ." Accessed Aug. 17, 2021.

State of West Virginia, Division of Labor. " Rules for Employee Wage Assignments ," Page 1. Accessed Aug. 17, 2021.

Illinois General Assembly. " (740 ILCS 170/) Illinois Wage Assignment Act ." Accessed Aug. 17, 2021.

wage assignment demand notice florida

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Wage Garnishment in Florida

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A wage garnishment order allows creditors to take money directly from your paycheck. Most of the time, this is only possible after a court has entered a judgment. Here's how Florida regulates wage garnishments.

Upsolve Team

Written by Upsolve Team .  Updated October 25, 2021

If you have an unpaid debt and a creditor sues you, they may be able to garnish your wages. Then, when you look at your paycheck, you’ll see a big deduction. This can make it hard to pay your bills. The good news is that Florida law provides exemptions you can claim to reduce or stop the garnishment.

This article discusses who can garnish your wages in Florida, the process creditors have to go through, how much creditors can take from your paycheck, and how to stop a garnishment in Florida.

What Is Wage Garnishment?

A wage garnishment is when a creditor takes money out of your paycheck to address a past-due debt. Consumer creditors usually have to win a court judgment before they can garnish your wages. Since the money comes right out of your paycheck, wage garnishments are usually the first collection method consumer creditors use to collect a judgment. But state law limits how much money they can take each pay period.

Who Can Garnish My Wages in Florida?

In Florida, consumer creditors that have won a court judgment can garnish your wages. Consumer creditors include those for credit card debts, medical bills, personal loans, car loans, and more. If the debt has gone to a debt collector or debt buyer, they can also win a court judgment to garnish your wages.

Some creditors can garnish your wages in Florida without getting a court judgment, including:

The IRS and the state taxing authorities

Federal student loan servicers

Parents collecting past-due domestic support obligations such as child support and alimony

Federal government agencies like the Small Business Administration

These types of debts have special rules and limitations. This article will focus on consumer debts that do require a court order for wage garnishment.

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The Florida Wage Garnishment Process

Creditors must follow a complex set of rules before they can get a garnishment order and start taking money from your paycheck.

To garnish your wages, the creditor must first sue you and win. When they file a lawsuit, you’ll be served with the summons and complaint. If you don’t file a timely answer with the court, the creditor will win a default judgment against you. For most cases, you have 20 days to file your answer. For small claims cases, there will be a date for you to appear in court listed on your summons. If you fail to appear, it’s the same as not filing an answer. 

If you have a defense to the lawsuit, you should appear in court and state your case. Your chances of winning are probably better than you think. 

If the creditor gets a judgment against you, they are called the judgment creditor and you're called the judgment debtor. Garnishments usually won’t start until at least 10 days after a small claims judgment or 30 days after the judgment in other courts. That's because you have that much time to appeal the case. Chapter 77 of the Florida statutes covers garnishment procedures in Florida and lays out the deadlines the creditor must meet to be valid.

Once the creditor gets a garnishment order, it must send the notice of garnishment to your employer. Your employer is known as the garnishee once the garnishment process starts. The garnishee has 20 days to file an answer to the garnishment with the court.

The judgment creditor must also send you the notice of garnishment within five business days of the court issuing the writ of garnishment. You as the judgment debtor have 20 days to file a claim of exemptions with the court and serve it on the judgment creditor by mail or in person.

If you file a claim of exemption, the judgment creditor has 14 business days to respond if you sent it by mail and eight business days if you served it in person. If the creditor doesn’t respond to your claim of exemption within that time, the garnishment may be automatically canceled. If the creditor files a response objecting to your exemption claim, the court will set a hearing.

How Much of My Paycheck Can Be Taken by Wage Garnishment?

The federal Consumer Credit Protection Act (CCPA) sets the minimum garnishment protection laws in every state. The states can enact stronger protections for their citizens, but can’t enforce a law with fewer protections. Florida uses the federal CCPA to calculate garnishments.

Under the CCPA consumer creditors can only take:

25% of your weekly disposable earnings, or

The amount your weekly earnings exceed 30 times the federal minimum wage. Right now that’s $7.25/hour so this amount is $217.50/week. If you make less than $217.50, all of your wages are exempt and can’t be garnished.

The law works in your favor in that creditors can take whichever of these two numbers is less. Disposable earnings are what’s left over in your paycheck after legally required deductions like payroll taxes are subtracted. Here are a few examples of how this pencils out:

Florida Wage Garnishment Calculations

In Example 1, where the employee has disposable earnings of $700 per week, the 25% rule is used since $175 (25% of $700) is less than $482.50 ($700 minus $217.50). In Example 2, the employee has disposable earnings of $265 per week. Here, the 30 times minimum wage rule is used. That’s because $47.50 ($265 - $217.50) is less than $66.25 (25% of $265).

The Head of Household Exemption

The calculations for Florida’s exemptions are the same as the federal exemptions with one exception. You can qualify for a head of household exemption, sometimes called the head of family exemption, if you’re the head of household. For heads of households, Florida’s laws are more favorable than federal law. A head of household is anyone who pays at least half of the living expenses of a dependent, which is broadly defined and includes more than just minor children. The dependent may not even live in the same household. For example, it could be an ex-spouse receiving alimony. 

Under Florida law, your income can’t be garnished if you’re the head of household and your weekly disposable income is $750 or less. If your weekly disposable income exceeds $750, a creditor can only garnish your wages if you agree to the garnishment. Often, people agree to this long before the garnishment begins by waiving the head of household exemption when they sign a loan contract.

If you qualify for a head of household exemption, you’ll need to take action to receive it by filing an affidavit with the court that explains your situation. You need to do this within 20 days of receiving your notice of garnishment.

Under federal law, other kinds of income may also be exempt from garnishment including Social Security benefits, veteran's benefits, and workers’ compensation. 

How To Stop a Garnishment in Florida

Unless you qualify for a head of household exemption, your options to stop a garnishment under Florida wage garnishment law aren't good. You could pay the total amount of the debt you owe, keep your income under $217.50 per week, or let the garnishment continue until the debt is paid.

You can also eliminate garnishments for consumer debts by filing bankruptcy. As soon as you file for bankruptcy , the court issues an automatic stay , which stops all collection activity against you, including wage garnishments. Most of your property will be protected with bankruptcy exemptions . If you have a simple Chapter 7 bankruptcy case, Upsolve provides a free tool that can help you file your own bankruptcy. For more complicated Chapter 7 bankruptcies or a Chapter 13 bankruptcy, Upsolve can help you get a free consultation with a bankruptcy attorney in your area.

Are There Any Resources for People Facing Wage Garnishment in Florida?

Legal services offices help lower-income people with several legal issues including garnishment. The state of Florida has many legal services and legal aid societies waiting to help people who can’t afford an attorney. You can also visit:

Florida Law Help

Florida’s Free Legal Answers

The American Bar Association’s Free Legal Help page 

Upsolve.org

Related Reading

  • Your Guide to Florida’s Debt Collection Laws
  • How to Settle Your Debts in Florida
  • How To Answer a Florida Court Summons for Debt Collection
  • How To File Bankruptcy for Free in Florida
  • Repossession Laws in Florida
  • Eviction Laws and Tenant Rights in Florida
  • How to Become Debt Free with A Debt Management Plan in Florida
  • How to Consolidate Your Debts in Florida
  • How to Get Free Credit Counseling in Florida

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  6. Sample Printable Assignment Of Wages Forms Template 2023

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COMMENTS

  1. Wage assignment and employers' responsibilities

    If an employee has a legal defense to the wage assignment, the employee may—within 20 days after receiving a notice of demand or within five days after the employer is served with the...

  2. What Is Wage Assignment?

    A wage assignment is a voluntary agreement to let a lender take a portion of your paycheck each month to repay a debt. This process allows lenders to take a portion of your wages without taking you to court first. Note Borrowers may agree to allow a lender to use wage assignments, for example, when they take out payday loans.

  3. Valley Servicing

    The notice of demand on a wage assignment is executed by the consumer ("Employee") provided from the Creditor. Under the Wage Assignment, the employer is authorized and instructed to deduct amounts from the Employee's wages in accordance with the Wage Assignment, the Demand, and applicable law. Wage Assignment VS. Garnishment

  4. Wage Assignments in Consumer and Other Contracts

    The typical wage assignment provision allows the employer to take the employee's future wages as security for the debt involved. In the event of default or nonpayment, it authorizes the creditor to go straight to the employer with a demand for wage garnishment, no court filing or judgment required.

  5. Wage Assignments and Garnishments: What Finance Leaders Need to Know

    A wage assignment is a voluntary agreement between the employee and creditor where an amount is withheld from the employee's paycheck to satisfy a debt owed to a third-party recipient, whereas under a wage garnishment, the amount withheld from the employee's check is typically obtained through a court order initiated by the creditor.

  6. PDF Know your rights if you default on a payday loan!

    Your Rights in a Wage Assignment: You have the right to stop a wage assignment at any time. & for any reason. You have the right to receive a notice about the wage. assignment by first class and registered/certified mail. You have the right to contact an attorney at any time. The lender can't take more than 15% of your wages.

  7. A Guide to Florida Wage Garnishment Laws

    A " wage garnishment ," sometimes called a "wage attachment," is an order requiring your employer to withhold a specific amount of money from your pay and send it directly to one of your creditors. Different garnishment rules apply to different types of debt, and legal limits apply to how much of your paycheck can be garnished.

  8. Florida Wage Payment Laws

    Payroll Card. Florida labor laws allow an employer to pay an employee their wages by payroll card if: the wage amounts available in the payroll debit card account is redeemable at face value on demand without deduction or fee at some established place of business in Florida. the payroll debit card shows the name and address of the business in ...

  9. Florida Statutes 516.17

    Florida Statutes > Chapter 516 > § 516.17 Florida Statutes 516.17 - Assignment of wages, etc., given to secure loans Current as of: 2023 | Check for updates | Other versions

  10. 1 Employment in Florida § 5-2

    Under certain circumstances, an employer may be asked to pay a portion of an employee's wages directly to a third person pursuant to an "assignment of wages." This is an agreement whereby the employee assignor allows a creditor assignee to take a portion of the employee's wages if the employee defaults on an obligation. As a general rule, such voluntary assignments are permissible in ...

  11. Involuntary and Voluntary Pay Deductions: Florida

    Voluntary wage assignments made by employees are invalid in Florida. See Voluntary Wage Assignments. To continue reading, register for free access now. Already an XpertHR user? Log in Read more items tagged with the same topics Payroll Wage Payments Pay Deductions Garnishment

  12. Florida Wage Garnishment Legal Guide

    A Florida wage garnishment is a court order that allows a creditor to take a portion of a debtor's wages to satisfy a judgment. A wage garnishment is used when the debtor does not voluntarily pay a judgment balance. A creditor can garnish 25% of the debtor's salary to satisfy an unpaid judgment. But wages are exempt from garnishment if the ...

  13. Voluntary Wage Assignments and Why You Should Avoid Them

    Signing a voluntary wage assignment can place you and your family in dire straits, if the lender garnishes wages that you need for your mortgage/rent, food and medical care. If you have signed a voluntary wage garnishment, you can revoke the agreement by sending the lender a letter. Remember, Payday Loans are Dischargeable in Bankruptcy

  14. Statutes & Constitution :View Statutes : Online Sunshine

    448.111 Evidentiary standards for actions of a business during an emergency. 448.01 Legal day's work; extra pay.—. (1) Ten hours of labor shall be a legal day's work, and when any person employed to perform manual labor of any kind by the day, week, month or year renders 10 hours of labor, he or she shall be considered to have performed a ...

  15. Wage Garnishment & Assignment: 4 must knows for employers

    Wage assignment occurs when an employee voluntarily agrees to have money withheld from his or her wages. Wage assignments are governed by state law and do not involve a court order. Since they are voluntary and the employee specifies the amount to withhold, they do not fall under the requirements of the Federal Consumer Credit Protection Act.

  16. Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit

    Wage garnishments do not include voluntary wage assignments - that is, situations in which employees voluntarily agree that their employers may turn over some specified amount of their earnings to a creditor or creditors. Title III of the CCPA's Limitations on Wage Garnishments

  17. Wage Assignment: What it Means, How it Works

    Wage assignment is the act of taking money directly from an employee's paycheck in order to pay back a debt obligation. Wage assignments may be either voluntary or involuntary, depending on...

  18. What you need to know about wage garnishment in Florida

    Even then, there are limits on the amount of wages you can garnish from your debtor. For example, there is a garnishment limit of 25% on weekly wages or the amount over 30 times the Federal hourly minimum wage in Florida. In addition, some exemptions may apply if your debtor is considered head of family. It means that they are providing more ...

  19. Wage Garnishment in Florida

    The amount your weekly earnings exceed 30 times the federal minimum wage. Right now that's $7.25/hour so this amount is $217.50/week. If you make less than $217.50, all of your wages are exempt and can't be garnished. The law works in your favor in that creditors can take whichever of these two numbers is less.

  20. Chapter 448 Section 110

    (3) Effective May 2, 2005, employers shall pay employees a minimum wage at an hourly rate of $6.15 for all hours worked in Florida. Only those individuals entitled to receive the federal minimum wage under the federal Fair Labor Standards Act and its implementing regulations shall be eligible to receive the state minimum wage pursuant to s. 24, Art.

  21. What Is Wage Garnishment & Select Does It Work?

    Wage garnishments have specific the compex rules governing payroll calculations. Learn more around the employee wage garnishment process with Paychex. When notified regarding this need to garnish wages by a federal/state agency alternatively court, commercial store may not always be delete with their responsibilities.

  22. Apex Servicing

    The notice of demand on a wage assignment is executed by the consumer ("Employee") provided from the Creditor. Under the Wage Assignment, the employer is authorized and instructed to deduct amounts from the Employee's wages in accordance with the Wage Assignment, the Demand, and applicable law. Wage Assignment VS. Garnishment

  23. What is a Wage Assignment in Arizona

    How a Wage Assignment is Issued in Arizona. A wage assignment is authorized to be issued by the Court by Arizona revised statute section 25-504. That statute authorizes the issuance of a wage assignment for the payment of child support and/or spousal maintenance when a parent files a verified request with the Clerk of the Court. The verified ...