Fact Sheet #30: The Federal Wage Garnishment Law, Credit Rating Protection Act’s Title III (CCPA)
This particular fact sheet provides basic information concerning the CCPA’s limitations in the amount that companies may withhold from a person’s profits in reaction to a garnishment purchase, in addition to CCPA’s protection from termination as a result of garnishment for almost any debt that is single.
Wage Garnishments
A wage garnishment is any appropriate or procedure that is equitable which some percentage of a person’s profits is needed to be withheld when it comes to re payment of the debt. Many garnishments are produced by court purchase. Other kinds of appropriate or equitable procedures for garnishment include IRS or state income tax collection agency levies for unpaid fees and federal agency administrative garnishments for non-tax debts owed to your government.
Wage garnishments try not to add voluntary wage assignments—that is, circumstances by which workers voluntarily concur that their companies may start some specified amount of these profits to a creditor or creditors.
Title III associated with CCPA’s Limitations on Wage Garnishments
Title III for the CCPA (Title III) limits the quantity of an individual’s earnings that could be garnished and protects a member of staff from being fired if pay is garnished just for one financial obligation. The U.S. Department of Labor’s Wage and Hour Division administers Title III, which is applicable in most 50 states, the District of Columbia, and all sorts of U.S. Regions and belongings. Title III protects everyone else whom gets earnings that are personal.
The Wage and Hour Division has authority pertaining to concerns associated with the amount garnished or termination. (more…)