Wage Garnishment: Your Rights and Legal Protections

To enforce wage garnishment in New York, a creditor must first obtain a judgment against the debtor through the court system. Once a judgment is entered, the creditor can issue a garnishment order, also known as an income execution, which is served on the employer. The employer then becomes obligated to withhold the specified amount from the employee's wages and remit those funds to the creditor or court until the debt is satisfied or the garnishment order is terminated.

Federal law, specifically the Consumer Credit Protection Act, limits the amount of disposable income that can be garnished to the lesser of twenty-five percent of weekly disposable income or the amount by which disposable income exceeds thirty times the federal minimum wage. New York law may provide additional protections that are more favorable to employees. Certain income sources are protected from garnishment, including Social Security benefits, unemployment insurance, workers compensation, and public assistance payments, ensuring that individuals retain access to essential financial resources.

Child support and spousal support obligations are among the most common reasons for wage garnishment in New York. These garnishments are often issued without a prior court judgment and can be implemented relatively quickly through administrative processes. The amount garnished for child support is typically calculated based on state guidelines and the number of dependents, with federal law allowing up to fifty percent of disposable income for current support obligations and up to sixty percent for arrearages.

Federal and state tax agencies can garnish wages to collect unpaid taxes without obtaining a court judgment first. Similarly, the federal government can garnish wages to collect defaulted federal student loans, with up to fifteen percent of disposable income subject to garnishment. These types of garnishments follow specialized procedures and may offer limited opportunities for the debtor to challenge the garnishment before it takes effect.

Before wage garnishment can be enforced, the employee must receive proper notice of the garnishment order and information about their rights. In New York, employees have the right to file an objection or claim exemptions within a specified timeframe, typically twenty days from service of the garnishment notice. The employee can challenge the garnishment based on improper service, incorrect amount calculations, or claims that the income is exempt from garnishment under state or federal law.

New York law recognizes that certain income sources must be protected to ensure employees can meet basic living expenses. Beyond federally protected income, employees may claim additional exemptions based on financial hardship or the nature of the income. If garnishment would create substantial hardship, an employee can petition the court to modify or terminate the garnishment, demonstrating that the income is necessary for essential living expenses. Issues related to unpaid wages may also provide grounds for counterclaims or defenses in garnishment proceedings.

Upon receiving a wage garnishment order, the employer must begin withholding the specified amount from the employee's wages and remitting those funds according to the garnishment instructions. The employer is required to maintain detailed records of all garnishments and payments made on behalf of the employee. Federal law prohibits employers from discharging an employee due to a single wage garnishment for any one indebtedness, though employees can still be terminated for other legitimate business reasons or if multiple garnishments are received.

When an employee faces multiple wage garnishments, questions arise regarding which garnishments take priority and how available wages are distributed among creditors. Child support and spousal support garnishments typically receive priority over consumer debt garnishments, and tax garnishments may also receive priority treatment. Employers must follow specific rules for prioritizing multiple garnishments to ensure compliance with federal and state law. Issues involving bank account garnishment and other collection methods may also arise when wage garnishment alone is insufficient to satisfy a debt.

If you are facing wage garnishment or believe your wages are being garnished improperly, it is important to act quickly to protect your rights and income. Consulting with an experienced attorney can help you understand your options, assert available defenses or exemptions, and work toward resolving the underlying debt in a manner that protects your financial stability and future.