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Last Updated August 5, 2008 |
Wage garnishment occurs when a creditor obtains a court order requiring an employer to withhold an employee's wages to satisfy a debt. It is also known as a wage deduction order. Title III of the Consumer Credit Protection Act ("CCPA") limits the amount that an employer may withhold from an employee's earnings in any one workweek or pay period and prohibits employers from terminating an employee because he or she is subject to a wage garnishment order. Basic Protections and RequirementsThe CCPA prohibits an employer from terminating an employee who has a wage garnishment for one debt. However, the CCPA does not prohibit employers from terminating employees who have a wage garnishment imposed for two or more debts. |
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