Vermont Garnishment laws & HR compliance analysis

Vermont Garnishment: What you need to know

A garnishment, or trustee, process as it is known in Vermont, is an order of a court to an employer (the trustee) to deduct a sum of money from an employee's wages for payment owed to a third party. A garnishment remains in effect until the underlying debt is satisfied. Vermont distinguishes support garnishment from all other types. There are numerous state and federal laws pertaining to garnishment, and where state laws are more restrictive than federal laws (i.e., by protecting a greater amount of salary from garnishment), state laws will govern.
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The Vermont laws on child and family support garnishment appear at VT Stat. Tit. 15 Sec. 780 etseq. The laws on garnishment for other types of debts appear at VT Stat. Tit. 12 Sec. 3170et seq. and at Vermont Rules of Civil Procedure Rule 4.2.
Debts other than support. The employer receives a court order stating the name of the party to whom payments are to be made and the amount required. An employer that fails to deliver the amount indicated may be liable to the creditor for the amounts not paid, together with any costs, interest, and attorney's fees incurred in their collection. The employer subject to a garnishment order is required to inform the issuing court and the judgment creditor as soon as reasonably possible if the employee is terminated.
Child support. Except in the case of an agreement between both parents, support orders require wage withholding (VT Stat. Tit. 15 Sec. 781). Wages include any compensation paid for personal services, such as wages, salary, commission, bonuses or other similar payments, and include periodic payments under pension or retirement programs, workers' compensation or insurance policies of any type. The employer ...

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