Colorado Garnishment laws & HR compliance analysis

Colorado Garnishment: What you need to know

A garnishment is a court order to an employer to withhold a sum of money from an employee's earnings for payment of a debt. Garnishment is regulated by both state and federal laws. Whichever law, state or federal, protects more of the employee's salary from garnishment will govern. In Colorado, state law regarding garnishment in large part follows the federal law.
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Garnishment vs. assignment of wages. Garnishment is an involuntary procedure that occurs when an employee has not paid his or her debts voluntarily. A court order for spousal or child support is called an income assignment. Additional information on other kinds of assignment of wages is available.
Family support may include spousal support, child support, and health insurance. Federal and state regulations require that when an Order/Notice to Withhold Income for Child Support is received, an employer must start withholding child support no later than the first pay period that occurs 14 working days after the date on the order. Employers must send the withheld child support to the address on the order within 7 business days of the date that the employee is paid. Exceptions to immediate activation may occur if one of the parties demonstrates that there is good cause not to require it, or both parties reach a written agreement for an alternative arrangement. The support order should provide the employer with all required information governing the specific assignment, including:
• The amount for current support, past-due support, and medical support
• A statement that the employer may deduct a fee to defray its costs for withholding
• A statement that the employer may not withhold more than the ...

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