Wage garnishment: is a legal order requiring an employer to withhold part of an employee's pay and send it to a creditor or government agency. Federal law caps most garnishments at 25% of disposable earnings, with higher limits for child support, and protects employees from being fired over a single garnishment.
Key takeaways
- Garnishments arrive as court orders, child support orders, IRS levies, or student loan orders.
- Limits are based on disposable earnings, which is pay after legally required deductions.
- Child support can take 50% to 65% of disposable earnings, depending on the employee's situation.
- An employer that ignores a valid order can become liable for the debt itself.
How wage garnishment works
Title III of the Consumer Credit Protection Act sets the federal ceiling. For ordinary debts, the weekly garnishment can't exceed the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, which is $217.50 a week (DOL Fact Sheet 30, Federal wage garnishment law). Disposable earnings means gross pay minus legally required deductions such as taxes; voluntary deductions such as health premiums and 401(k) deferrals don't reduce it.
Support orders follow different limits: up to 50% of disposable earnings if the employee supports another spouse or child, 60% if not, plus 5% more when payments are more than 12 weeks in arrears. Federal tax levies use IRS tables, and federal student loan administrative wage garnishment is capped at 15%. State law can set lower limits, and many do.
When several orders arrive, child support generally comes first. The employer's job is to start withholding by the date on the order, remit on time, notify the issuer when employment ends, and keep the employee's pay above the legal floor.
Wage garnishment example
An employee has weekly gross pay of $800, with $120 in federal, state, and FICA taxes and $40 in voluntary health premiums. A creditor's garnishment order arrives.
| Disposable earnings, $800 minus $120 in taxes | $680.00 |
|---|---|
| Test 1: 25% of disposable earnings | $170.00 |
| Test 2: $680 minus $217.50 | $462.50 |
| Maximum weekly garnishment (lesser) | $170.00 |
The $40 health premium doesn't reduce disposable earnings, because it's voluntary. If the state sets a lower limit, the state limit applies.
Why wage garnishment matters for employers
Garnishments are one of the few payroll tasks where the employer can end up owing someone else's debt. Courts can hold an employer liable for amounts it should have withheld, and some states add penalties. Getting the calculation wrong in the other direction, taking too much, exposes you to wage claims.
There's also a people side. Federal law bars firing an employee because their pay has been garnished for any one debt. Handle orders confidentially, limit access to payroll staff, and tell the employee before the first deduction. Payroll software that tracks multiple orders, priority, and state limits saves hours each month for employers with large hourly workforces.
Common wage garnishment mistakes to avoid
Subtracting voluntary deductions first
Only legally required deductions reduce disposable earnings. Health premiums and 401(k) deferrals don't.
Ignoring state limits
Several states cap garnishments well below the federal 25%. The lower limit applies.
Missing the answer deadline
Many orders require the employer to file an answer with the court within a set number of days.
Disciplining the employee
Federal law protects employees from discharge over one garnishment, and some states go further.
Wage garnishment: questions people also ask
How much of my paycheck can be garnished?
Can an employer fire someone for a wage garnishment?
What comes first, child support or other garnishments?
Does garnishment apply to bonuses?
How long does a wage garnishment last?
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HRTally glossary entries are written by people who have run US payroll, benefits, and HR operations, then checked line by line against primary sources such as the IRS, Department of Labor, EEOC, and Bureau of Labor Statistics. Dollar limits and rates are for 2026 unless stated. We review every entry at least twice a year and whenever a rule changes. This page explains general rules and isn't legal or tax advice; state law can differ. Read our editorial standards.
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<blockquote>Wage garnishment is a legal order requiring an employer to withhold part of an employee's pay and send it to a creditor or government agency. Federal law caps most garnishments at 25% of disposable earnings, with higher limits for child support, and protects employees from being fired over a single garnishment.</blockquote><p>Source: <a href="https://www.hrtally.com/hr-glossary/wage-garnishment/">HRTally HR Glossary, Wage garnishment</a></p>
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.