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Fact Sheet #30: The Federal Wage Garnishment Law, Credit Protection Act’s Title III (CCPA)

Fact Sheet #30: The Federal Wage Garnishment Law, Credit Protection Act's Title III (CCPA) This particular fact sheet provides basic information concerning the CCPA’s limitations on the quantity that companies may withhold from a person’s profits in response up to a garnishment purchase, as well as the CCPA’s defense against termination as a result of garnishment for just about any debt that is single. Wage Garnishments A wage garnishment is any appropriate or procedure that is equitable which some part of a person’s earnings is needed to be withheld for the re re payment of a financial obligation. Many garnishments are formulated by court purchase. Other kinds of appropriate or equitable procedures for garnishment include IRS or state income tax collection agency levies for unpaid fees and federal agency administrative garnishments for non-tax debts owed towards the government that is federal. Wage garnishments usually do not consist of voluntary wage assignments—that is, circumstances for which workers voluntarily concur that their employers may start some specified amount of the profits up to a creditor or creditors. Title III of this CCPA’s Limitations on Wage Garnishments Title III of this CCPA (Title III) limits the quantity of an individual’s profits that could be garnished and protects a member of staff from being fired if pay is garnished just for one debt. The U.S. Department of Labor’s Wage and Hour Division administers Title III, which is applicable in most 50 states, the District of Columbia, and all sorts of U.S. Regions and possessions. Title III protects everybody else whom gets individual profits.

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