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How to respond when employees’ creditors come calling

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in Compensation and Benefits,HR Management,Human Resources

Record numbers of bankruptcies and foreclosures have been making a big splash in the news for the last four years. However, a quieter phenomenon—one fraught with traps for unwary employers—is a concurrent and growing trend of court-ordered or government-issued wage garnishments.

A wage garnishment typically is a court order requiring an employer to deduct or withhold a specified sum or percentage of an employee’s wages. The withheld amount is paid to a third party to satisfy indebtedness (usually in the form of a judgment) against the employee. The indebtedness often relates to child- or spousal-support payments, but also can be based on an unpaid loan or other debt, including those relating to bankruptcies and back taxes.

Here's some practical advice on what to do when someone wants a piece of your employee’s paycheck.

Always answer the garnishment!

Even if you determine that you do not have to make the specified dedu...(register to read more)

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