If your employee has voluntarily signed a contract or wage assignment with a creditor to pay a specific amount as a payroll deduction, then the deduction is not a garnishment for purposes of the Consumer Credit Protection Act, and the garnishment limits do not apply. State law may limit wage agreements.
Federal and state laws place limits on the amount of an employee’s disposable income that can be garnished in a work week. State laws take precedence if they have stricter garnishment limitations.
For for more information about garnishment limits, see the U.S. Department of Labor Fact Sheet about the federal wage garnishment law.
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