One of the common ways for creditors to get back their debts is by using wage garnishment. It is a legal order, given by the courts that allow the creditor to directly contact a debtor’s employer and get the accumulated amount deducted directly from the salary or wage. The creditors are however not allowed to intercept more than 25% of the wage in a month. Wage garnishment is usually one of the last steps creditors take to get back their money. The California Wage Garnishment Act compulsorily states that all employers (whether private or public) will have to obligate a wage garnishment direction and garnish a certain percentage of the employee’s wage for debt collection. Wage garnishment can be used to pay pending credit card bills, child support amount and back taxes.
Few Defining Factors of Wage Garnishment in San Jose
- Employee Termination After Wage Garnishment Direction - According to the state laws of California which are applicable to San Jose, an employer cannot terminate an employee because of a wage garnishment notification. This rule has been defined according to the Wage and Hour Division of the U.S. Department of Labor’s Employment Standards Administration. An employer has to honor two or more wage garnishment orders for any employee.
- Percentage That Can Be Deducted - According to the state laws, an employee or even a creditor cannot garnish an employee’s entire paycheck in one go. A certain percentage, in this case, 25 percent of the wage can only be deducted. However, this 25% should be deducted from an employee’s disposable income only. Disposable income means any income that goes to the employee after deducting the several kinds of federal, state and local taxes, medi-care, social security payments etc.
- On Matters Related to Alimony and Child Support – In San Jose there are certain restrictions imposed on alimony and child support too. If a debtor is supporting a child or a spouse that is not included in the order, the employer has the rights to garnish more than 50 per cent of the person’s wage. However, if it is found that the above condition does not hold truth the employer can deduct as much as 60% of the disposable income. The California state laws also have a provision where if the arrears exceed 12 weeks, an additional 5% can be deducted.
- Penalties Levied on the Employer - Wage garnishment can only be applied after a legal notice by the courts. Thus an employer is not allowed to garnish wages without getting a legal notification. If it is found that an employer is garnishing wage without a legal procedure, the state laws that govern San Jose, has a provision where the employer can be charged of non-compliance. Thus the employer has to pay back the garnished amount to the employee and restore all deducted amount. If the employer doesn’t follow the state directives, the Department of Labor can put a fine up to $1000 and imprisonment up to a year.
0 comments:
Post a Comment