Employer Obligations Under Wage Garnishment Orders: What You Must Do

Receiving a wage garnishment order in the mail can be confusing for employers, especially small business owners who have never dealt with one before. But ignoring or mishandling a garnishment order is not an option — employers who fail to comply face personal liability, court sanctions, and in some cases, contempt charges. Here is exactly what the law requires and how to stay compliant.

What Is a Wage Garnishment Order?

A wage garnishment order (also called an Earnings Withholding Order, Income Withholding Order, or Writ of Garnishment depending on the state) is a court-issued or agency-issued directive requiring an employer to withhold a portion of an employee's wages and remit those funds to a creditor, government agency, or court. Orders can arise from consumer debt judgments, child support, student loans, or federal/state tax levies.

Once you receive a valid order, you are legally obligated to act — typically within 10 to 30 days depending on your state. Use our Wage Garnishment Calculator to verify the correct withholding amount for your state before processing the first deduction. For specific calculations, you can use the California Wage Garnishment Calculator, Texas Wage Garnishment Calculator, Florida Wage Garnishment Calculator, or New York Wage Garnishment Calculator.

Step-by-Step: What Employers Must Do

Upon receiving a garnishment order, follow these steps without delay:

• Verify the order is valid. Confirm it is directed to the correct employer, names your employee, and includes a court case number or agency identifier. Fraudulent garnishment notices do exist.
• Notify the employee. Most states require you to provide the employee with a copy of the order and information about their right to claim exemptions. In many states, this must happen within 10 days of receipt. Check state-specific rules such as in Florida and Georgia.
• Calculate the correct withholding amount. Federal law under the Consumer Credit Protection Act (CCPA) caps garnishment at the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage per week. Child support orders can go higher — up to 50–65% depending on circumstances. Your state may impose lower limits. Refer to Illinois Wage Garnishment Limits and How to Reduce Them and Ohio Wage Garnishment: How Much Can Be Taken From Your Paycheck for more details.
• Begin withholding on the next pay period. Do not delay beyond the deadline specified in the order. Late compliance can result in the employer being held liable for the full amount that should have been withheld.
• Remit funds to the correct party. Send withheld funds to the creditor, court, or agency identified in the order by the deadline specified — typically within 10 days of each pay period.
• Maintain records. Keep copies of the order, all withholding calculations, and remittance confirmations. These records protect you if the employee or creditor disputes the amounts.

The Anti-Retaliation Rule: You Cannot Fire a Garnished Employee

This is one of the most important — and most violated — rules in wage garnishment law. Under Title III of the Consumer Credit Protection Act, an employer cannot discharge, discipline, or otherwise retaliate against an employee because of a single garnishment order. Violating this rule is a federal crime punishable by up to one year in prison and fines.

Note the critical word: single. Federal law only protects employees from termination for their first garnishment. If an employee has two or more simultaneous garnishments, federal law does not prohibit termination — though many states provide broader protection. California, for example, prohibits termination for any number of garnishments. Learn more in Can My Employer Fire Me for Wage Garnishment? and California Wage Garnishment Laws Explained.

Regardless of the number of orders, disciplining an employee for the garnishment itself — reducing hours, denying promotion, or creating a hostile work environment — can expose the employer to wrongful termination and discrimination claims under state law.

Handling Multiple Garnishment Orders

When an employee has multiple garnishment orders, priority rules determine which creditor gets paid first. Child support and tax levies take priority over consumer debt judgments. If the total of all orders exceeds the legal maximum, you must pay in priority order and notify lower-priority creditors that the cap has been reached. You are not required to withhold more than the legal maximum regardless of how many orders you receive.

Penalties for Non-Compliance

Employers who ignore or mishandle garnishment orders face serious consequences. Courts can hold employers in contempt, impose fines, and in extreme cases, hold the employer personally liable for the full debt owed to the creditor. For child support orders specifically, federal law imposes civil penalties of up to $10,000 for willful non-compliance. State penalties vary but are generally severe. For more information, see Child Support Garnishment Rules by State and State Garnishment Laws.

If you are unsure how much to withhold for a specific employee, use our Wage Garnishment Calculator to get the correct amount based on your state's laws and the type of garnishment order received. You can also compare your state's rules with others using our Garnishment Laws Comparison tool.