Can my employer fire me for a garnishment?

Federal law (Title III CCPA) prohibits firing for a single garnishment. Multiple garnishments may not have the same protection. Some states have stronger protections.

What is the maximum garnishment from my paycheck?

For most consumer debts, 25 percent of disposable earnings. Higher for child support (up to 65 percent) and IRS levy (no fixed cap, IRS uses an exempt-amount table).

Can I stop a garnishment?

Sometimes. Pay the debt in full, set up a payment plan, file for bankruptcy, or challenge the garnishment in court if there is a basis. Talk to an attorney.

Wage Garnishment Explained (US)

A wage garnishment is a court order or IRS levy directing your employer to withhold a portion of your paycheck and send it to a creditor. Federal law caps how much can be taken. Some debts override the cap.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

How garnishment shows on your stub

A separate post-tax deduction line, often labeled GARN, GARNISHMENT or with a creditor name. The amount comes out of net pay (your take-home), not gross, but the amount is calculated based on disposable earnings (gross minus required deductions).

Federal limits (Title III of the Consumer Credit Protection Act)

For most consumer debts: lesser of 25 percent of disposable earnings, or the amount by which disposable earnings exceed 30 times the federal minimum wage per week.

Higher limits for specific debts

Child support: up to 50 percent if you support another spouse or child, 60 percent if not. Plus 5 percent if 12+ weeks in arrears.
Federal student loans (Department of Education): up to 15 percent of disposable earnings.
Federal taxes (IRS levy): the IRS uses Form 668-W and sends a table of exempt amounts. The non-exempt portion is taken.
State and local taxes: state-specific limits.

Notice requirements

Most states require notice before garnishment starts. The IRS sends multiple notices before a wage levy. If you receive a Notice of Intent to Levy, you have time to respond, request a hearing, or set up a payment plan.

What to do if garnishment notice arrives

Read the notice. Identify the creditor and the amount.
Verify the debt is actually yours and the amount is correct.
If you cannot pay, contact the creditor, the IRS, or your state to discuss payment plans.
For tax debt, options include installment agreement, offer in compromise, currently not collectible status.
Talk to an attorney for non-tax debts. Bankruptcy may be an option in extreme cases.

Employer cannot fire you

Title III prohibits employers from firing an employee because of one wage garnishment for any single debt. Multiple garnishments may not have the same protection.

Frequently asked questions

Can my employer fire me for a garnishment?: Federal law (Title III CCPA) prohibits firing for a single garnishment. Multiple garnishments may not have the same protection. Some states have stronger protections.
What is the maximum garnishment from my paycheck?: For most consumer debts, 25 percent of disposable earnings. Higher for child support (up to 65 percent) and IRS levy (no fixed cap, IRS uses an exempt-amount table).
Can I stop a garnishment?: Sometimes. Pay the debt in full, set up a payment plan, file for bankruptcy, or challenge the garnishment in court if there is a basis. Talk to an attorney.