Global HR Glossary

What are Garnished Wages? 

Garnished wages refer to the portion of an employee's earnings that is legally withheld by their employer to settle debts such as child support, taxes, or other financial obligations. This process is typically initiated through a court order or government directive. 

Process and Implications of Wage Garnishment 

The wage garnishment process involves three main parties: the debtor (employee), the garnishee (employer), and the garnishor (creditor). Employers must comply by deducting the specified amount from the employee’s disposable income, which is their earnings after taxes and mandatory deductions.

There are legal limits on how much of an employee's wages can be garnished to ensure that they retain sufficient income to meet basic living expenses. Employees can dispute garnishments they believe are incorrect or unfair by appealing in court. This measure continues until the debt is fully satisfied or the garnishment order is lifted.