Montana Garnishment laws & HR compliance analysis

Montana Garnishment: What you need to know

A garnishment is a court order to an employer (the garnishee) to withhold a sum of money from an employee's wages for payment of a court- or agency-ordered debt. The employee may be called a debtor or obligor. Montana law draws a distinction between garnishments for support obligations and those for other debts.
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Respond promptly. An employer that is served with a wage garnishment must respond promptly to the notice and any other court papers regarding garnishment. Employers that fail to respond to a notice, or in any way to ignore a garnishment, run the risk of being held personally liable for the entire judgment.
Disposable earnings defined. "Disposable earnings" in Montana is defined as gross wages after mandated deductions such as retirement and union dues.
The employer will receive a child support order from the Child Support Enforcement Division (CSED) of the Department of Public Health and Human Services, stating the amount to be deducted; the amount of any administrative fee allowed; the length of time the order is to remain in effect, if known; to whom the deduction is to be made payable; and where it is to be forwarded. The employer must begin deductions by the first pay period after receiving the order, and must submit child support payments within 7 working days of the employee's pay date along with a statement indicating the date the amount was withheld. An employer that fails to withhold and deliver support money under a child support order is liable to the CSED for the amount it should have withheld and delivered. If the employee leaves the job, the employer must promptly notify the CSED of the employee's termination date; the employee's last known address; and the name and ...

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