Can a credit card company garnish one of my employee’s wages? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Can a credit card company garnish one of my employee’s wages?

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Q. I have been contacted by a credit card company about garnishing the wages of one of my employees. Can a credit card company garnish wages in Texas?

No. The Texas Constitution provides that no wages shall be subject to garnishment, except for the enforcement of court-ordered child support payments. The Texas Supreme Court has held that this provision prevents credit card companies from garnishing the wages of Texas workers to satisfy a debt.

Although the Texas Constitution prohibits the garnishment of wages for reasons other than child support, federal law allows garnishment of up to 10% of disposable earnings (or more if authorized by the worker) for repayment of defaulted guaranteed student loans. This federal law overrides the state’s limitation of garnishments.

Thus, in Texas, wages can be garnished only for court-ordered child support orders and to repay guaranteed student loans.

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