Indiana Garnishment laws & HR compliance analysis

Indiana Garnishment: What you need to know

A "garnishment" is an order of a court to an employer (the garnishee) to withhold a sum of money from an employee's earnings for payment of a debt. Garnishment is an involuntary procedure in which an employer is ordered to make deductions from an employee's wages in order to repay debts. In contrast, an “assignment of wages” is a voluntary transaction whereby an employee requests, in writing, that his debts be paid out of his wages.
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There are numerous state and federal laws pertaining to garnishment. Where state law is more restrictive than federal law (i.e., by protecting a greater amount of salary from garnishment), then state law will govern.
The state of Indiana draws a distinction between garnishments for support obligations (IN Stat. Sec. 31-16-15-0.5et seq.) and garnishments for other kinds of debts (IN Stat. Sec. 24-4.5-5-104 et seq.).
The employer will receive an income withholding order stating that:
• The employer is required to withhold a certain amount of income from the employee.
• The total amount to be withheld under court order by the employer includes the employee's current child support obligation, any amount in arrears, and an optional fee of $2 for administrative costs.
• The employer will forward the withheld income to the state central collection unit with a statement identifying the payee's name, cause number, and Indiana support enforcement tracking system number (ISETS); the amount withheld by the employer; and the name and Social Security number of each employee.
• The withholding order is binding on the employer until further notice.
• The employee may recover $100 or more from the employer in a civil action if the employer discharges the ...

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