Fact Sheet #30: The Federal Wage Garnishment Law, Credit Rating Protection Act’s Title III (CCPA)

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 from the quantity that companies may withhold from a person’s profits in reaction up to a garnishment purchase, together with 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 equitable procedure through which some percentage of a person’s earnings is needed to be withheld for the re re payment of a financial obligation. Most garnishments are designed by court purchase. Other styles of appropriate or equitable procedures for garnishment include IRS or state taxation collection agency levies for unpaid fees and federal agency administrative garnishments for non-tax debts owed towards the government.

Wage garnishments usually do not add voluntary wage assignments—that is, circumstances for which employees voluntarily concur that their companies may start some specified amount of the profits up to a creditor or creditors.

Title III associated with the CCPA’s Limitations on Wage Garnishments

Title III regarding the CCPA (Title III) limits the total amount of an individual’s profits that can 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 individual earnings.

The Wage and Hour Division has authority pertaining to concerns associated with the amount garnished or termination. Continue reading “Fact Sheet #30: The Federal Wage Garnishment Law, Credit Rating Protection Act’s Title III (CCPA)”