Wage garnishments are only permissible in restricted instances in Pennsylvania.
A “wage garnishment,” also known as a “wage attachment,” is an order that requires your employer to deduct a particular amount of money from your salary and deliver it straight to one of your creditors. Most creditors cannot garnish your salary unless they first get a money judgment from a court. For example, if you fall behind on credit card payments or owe a doctor’s bill, your income cannot be garnished until you litigate and get a judgment. Some creditors, such as those owed taxes, federal student loans, child support, or alimony, do not need to file a lawsuit in order to garnish your wages. These creditors have the legal ability to deduct money immediately from your paycheck.
However, creditors cannot grab your whole salary. The amount of your income that may be garnished is determined by many laws and legal constraints. For example, federal law restricts the amount of judgment creditors may collect. The garnishment amount is restricted to 25% of your disposable weekly earnings (what’s left after obligatory deductions) or the amount by which your disposable weekly earnings exceed 30 times the federal minimum hourly rate, whichever is smaller. (15 U.S.C. § 1673).
Some states have a lower restriction on how much of your salary may be garnished. Garnishments are not permitted in Pennsylvania except in certain circumstances such as child or spousal support, late rent on a residential lease, and student loans.
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Wage Garnishment Limits in Pennsylvania
Again, federal law restricts the amount of pay garnishment. However, Pennsylvania law is harsher, permitting income garnishments only for the following reasons:
Child or spousal support responsibilities related to a final divorce distribution board for four weeks or less, certain types of taxes, school debts, court-ordered restitution in criminal situations, and unpaid rent on a residential lease. (In this instance, a garnishment is restricted to 10% of net income, and the garnishment can’t lead your pay to fall below the federal poverty criteria. Garnishment is not permissible if your wages do not exceed the federal poverty limit. A garnishment for property damage is also not authorized if the lessee is a victim of domestic violence.) 42 Pa. Cons. Stat. 8127, 8128).
Child Support, Student Loan, and Unpaid Taxes Limits
If you owe child support, federal student loans, or taxes, the government or a creditor may garnish your earnings without a court order.
Limits on Garnishment for Unpaid Child Support
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.
This form of wage garnishment is prohibited under federal law. If you are presently supporting a spouse or kid who is not the subject of the order, up to 50% of your disposable wages may be taken to pay child support. If you do not support a spouse or kid, the government may confiscate up to 60% of your wages. If you are more than 12 weeks behind on your payments, you may be charged an extra 5%. (15 U.S.C. § 1673).
When it comes to child support garnishments, Pennsylvania law follows federal law. 23 Pa. Cons. Stat. 4348(g), 3703). Visit the Pennsylvania Department of Human Services website to learn more about child support laws in Pennsylvania.
Maximum Garnishment for Federal Student Loans in Default
If you are in default on a federal student loan, the United States Department of Education or any firm collecting for this agency has the authority to garnish up to 15% of your wages. (20 U.S.C. § 1095a(a)(1)). This is referred to as a “administrative garnishment.” However, you may retain an amount equal to 30 times the current federal minimum wage every week. (Recall that federal law protects income up to 30 times the minimum wage per week from garnishment.) (15 U.S.C. § 1673).
Limits on Garnishment for Unpaid Taxes
If you owe unpaid taxes, the federal government may garnish your earnings (called a “levy”) even if you do not have a court judgment. The weekly exempt amount is calculated by adding the taxpayer’s standard deduction and the aggregate amount of personal exemption deductions permitted in the taxable year in which the levy occurs. The sum is then divided by 52. If you fail to verify the standard deduction and the number of dependents you are allowed to claim on your tax return, the IRS bases the amount exempt from levy on the standard deduction for a married individual filing separately with just one personal exemption (26 U.S.C. 6334(d)).
States and municipalities may also be entitled to garnish your salary in order to collect outstanding state and local taxes. Garnishments by the Pennsylvania Department of Revenue cannot exceed 10% of your net earnings under Pennsylvania law, and your wages must be over the poverty threshold. 72 Pa. Stat. 10003.15.
How to Keep Your Wages Safe From Garnishment
If you get a notification of a wage garnishment order, you may be able to safeguard or “exempt” part or all of your earnings by submitting an exemption claim or making an objection with the court. The processes you must take to object to a wage garnishment vary depending on the kind of debt sought by the creditor and the laws of your state.
Most garnishments may also be stopped by filing for bankruptcy. The quantity of money you may keep is determined by your state’s exemption regulations. (If you can’t pay your payments, find out whether debts are dischargeable in Chapter 7 bankruptcy.)
Job Termination Restrictions Due to Wage Garnishments
Complying with wage garnishment orders might be difficult for your employer; some may choose to fire you rather than comply. In this circumstance, federal law gives you some protection. 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.
Some states provide greater debtor protection than others. Pennsylvania adheres to federal law. 42 Pa. Const. Stat. 8127.