08/24/2026
A wage garnishment order does not mean you can let the employee go. Under federal law, firing someone over a single garnished debt is a violation.
When a valid garnishment order arrives, the employer withholds part of the employee's pay, stays inside the federal limits, and sends the money to the right place. For an ordinary debt, the cap is the lesser of 25% of disposable earnings or the amount above $217.50 a week. Child support and alimony can go higher. And the withholding is based on disposable earnings, meaning pay after legally required deductions, not gross wages.
Two points employers should look out for:
1. State law can cap garnishment lower than federal law, and when it does, the lower limit applies. And the protection against firing covers one debt, not a second separate one.
2. Garnishments are one of those quiet moments where good payroll protects both the business and the employee; everyone wins.
Read the full breakdown on our blog! https://journeypayrollhr.com/resources/blog/