Wage Garnishment Laws in New York

The amount that judgment creditors may garnish (extract) from your salary or paycheck is limited under New York income execution rules.

The amount that a creditor may garnish from your earnings to satisfy debts is limited by New York State law. Wage garnishment laws in New York, sometimes known as “income executions,” offer borrowers with somewhat more protection than federal law, enabling judgment creditors (those creditors who have sued and secured a money judgment) to take up to 10% of your gross salary. Depending on the kind of debt, creditors may be able to take more without first filing and winning a lawsuit.

What Exactly Is an Income Execution?

An “income execution” is a court or government agency order requiring your employer to deduct a certain amount of money from your salary for the benefit of your creditor. However, the creditor cannot accept your complete check. Depending on the kind of debt, legal restrictions govern how much of your salary a creditor may garnish.

In New York, when may a creditor garnish wages?

Creditors that owe you money might seize your earnings without doing anything else:

Unpaid income taxes, court-ordered child support and arrears, and defaulted school loans are all examples of debt.

Most creditors, however, cannot get an income execution order unless they first obtain a court judgment indicating that you owe the creditor money. For example, if you fall behind on credit card payments or owe money on a doctor’s bill, the creditor must first file a case, win in court, and get a money judgment against you before garnishing your earnings.

New York State Income Execution Limits

The amount of income execution that may be deducted from your paycheck is limited by federal law. The concept is that you should have enough money left over to cover your living expenditures. New York State somewhat extends the federal boundaries, providing wage workers with a little more protection. Here are the guidelines:

In New York State, a creditor may garnish the lesser of 10% of your gross salary or 25% of your disposable income if it exceeds 30% of the minimum wage. Garnishment is not permitted if your discretionary income is less than 30 times the minimum wage. 5231 (N.Y.C.L.P.R.).

“Disposable earnings” are the pay remaining after your employer has done the legally needed deductions. 5231 (N.Y.C.L.P.R.). Federal, state, and municipal taxes, Social Security, and the employee component of state unemployment compensation insurance are examples of legally mandated deductions. Non-required deductions do not contribute toward reducing your disposable income.

Limits on Child Support, Student Loans, and Unpaid Taxes

If you owe child support, student loans, or taxes, the government or a creditor may take your earnings without a court order—and the maximum garnishment amount varies.

Child Support Payments

Since 1988, all child support orders have included an automatic income withholding order. If you fall behind on child support payments, the other parent may seek a wage garnishment order from the court.

If you are presently supporting a spouse or kid who is not the subject of the order, federal law restricts the garnishment to up to 50% of your disposable wages. If you do not support a spouse or kid, the government may confiscate up to 60% of your wages. For support payments that are more than 12 weeks late, an extra 5% may be withheld. (15 U.S.C. § 1673).

Student Loans in Default

If you are in default on a federal student loan, the U.S. Department of Education or any firm collecting for this agency may garnish your earnings via an administrative garnishment without first obtaining a court judgment. The Department of Education may deduct up to 15% of your discretionary income, but no more than 30 times the minimum salary. 20 U.S.C. 1095a(a)(1) and 15 U.S.C. 1673).

Taxes owed

If you owe past taxes, the federal government may garnish your pay without a court order. The amount will be determined by the number of dependents you have and your deduction rate. (26 U.S.C. § 6334(d)).

States and municipalities may garnish your salary to recover outstanding state and local taxes. To learn more, contact your state labor department.

Several garnishes: Total Allowable Garnishment

If you have more than one garnishment, federal law limits the total amount that may be garnished to 10% of your gross income or 25% of your disposable wages, whichever is less. (15 U.S.C. § 1673). For example, if the federal government garnishes 15% of your disposable income to repay delinquent student loans and your employer obtains a second wage garnishment order, the employer may only take 10% of your disposable income to pay the second creditor.

Job terminations and wage garnishments

Complying with wage garnishment orders might be inconvenient for your employer, and some may be tempted to fire you. In this circumstance, both state and federal law protect you.

If you have one wage garnishment, your employer cannot fire you under federal law. (15 U.S.C. § 1674). However, if you have more than one wage garnishment order, federal law will not protect you. To learn more about state protections, speak with a local attorney. In New York State, your employer cannot dismiss, refuse to promote, or otherwise penalize you merely because of an income execution. 5252 (N.Y.C.L.P.R.).