What is wage garnishment?

Wage garnishment refers to a legal procedure whereby a portion of an individual's earnings is withheld by an employer in order to satisfy a debt, typically due to a court order or a government agency directive. This process is commonly applied to unpaid debts such as child support, taxes, or personal loans. The amount withheld is deducted directly from the employee's paycheck and forwarded to the entity that initiated the garnishment.

This process ensures that obligations are met while providing a systematic way to address debts without placing an undue burden on the debtor, who may otherwise struggle to manage these payments on their own. It is regulated by federal and state laws, which set limitations on how much can be garnished from earnings to protect the employee's ability to meet their essential living expenses. Recognizing the legal framework surrounding wage garnishment is essential for understanding how payroll deductions function within the context of employee compensation and debt management.