Wage Garnishments: Know Your Limits

In trying economic times, the employees of automotive companies and Next-Generation manufacturers, like those of other companies, face financial hardship. In some cases, this may translate into these companies facing higher than normal rates of wage garnishment requests. While no national statistics are kept, many areas of the U.S. have seen drastic increases in wage garnishment in the last several years. It is important for companies to understand the process and legal limitations placed on wage garnishment in order to avoid liability for missteps.

Federal law places limitations on the amount a company may garnish from an employee's pay. States are free to enact stricter limitations, although often their regulations mirror the federal requirements. Under Title III of the Consumer Credit Protection Act, the federal government protects employees whose wages are garnished by limiting the amount that can be withheld for certain types of debts. Under this law, employers