Tuesday, January 26, 2021
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Articles
    • See All Articles
    • NEW: COVID-Related
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Leadership and Career
  • Vendor News
  • Jobs
  • Events
    • Webinars & Events
    • Submit an Event
  • Downloads
    • eBooks
    • Whitepapers
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Articles
    • See All Articles
    • NEW: COVID-Related
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Leadership and Career
  • Vendor News
  • Jobs
  • Events
    • Webinars & Events
    • Submit an Event
  • Downloads
    • eBooks
    • Whitepapers
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
Corporate Compliance Insights

Debunking Wage Garnishment Myths

by Corrinne Flores
May 16, 2016
in Uncategorized
Is your company is compliant with wage garnishment regulations?

Employers in the U.S. today must navigate an unorganized amalgam of federal and state legislation, agency regulations, policies and sometimes inconsistent case law to avoid costly penalties for noncompliance, not only with respect to their specific business, but also with respect to their requirements as employers generally.  In the area of wage garnishments, evolving state and federal requirements can blindside businesses that are inexperienced in processing wage garnishments.

Fortunately, many U.S. companies understand the basics of wage garnishments:  When an employee owes a debt, his or her employer receives a wage garnishment order requiring the company to withhold a portion of that employee’s wages until the debt is paid in full.  While that sounds straightforward, confusion and misperceptions can arise when you dive deeper into wage garnishment compliance.

With that backdrop, let’s dive deeper to see where five common myths meet reality:

Myth #1:

All wage garnishments are the same.

In fact, the reasons behind an order to garnish an employee’s wages can vary greatly – from outstanding student loans, child support or bankruptcy to tax levies, creditor garnishments and wage assignments.  Creditors and employers must determine how much of an employee’s wages will be applied toward a specific debt.

Myth #2

It’s simple to comply with wage garnishment requirements.  

With so many different laws, other requirements and contacts at the federal, state and local levels, staying on top of wage garnishments can create an administrative challenge – especially for businesses operating in multiple states.  Employers can potentially be liable for 100 percent of an employee’s wage garnishment if processed incorrectly, making businesses especially vulnerable to penalties for noncompliance.

Myth #3

There is no new legislation on the horizon that could impact how businesses process wage garnishments.

The American Payroll Association (APA) is currently working with the Uniform Law Commission (ULC) to pursue standards for processing wage garnishments in order to simplify how businesses handle certain garnishment orders.  While this is just one example, any future legislation stemming from this initiative could significantly change the way businesses manage wage garnishments nationwide.

Myth #4

Wage garnishments are a paper-based function.

In fact, to keep pace with a broad range of legislative updates, many businesses are transitioning to electronic wage garnishment processes.  A great example here is the fact that the total volume amount of electronic income withholding orders (e-IWOs) increased from 926,373 in 2013 to 1,608,119 in 2015, according to The Federal Office of Child Support Enforcement.

Myth #5

Limited quality data exists about wage garnishment trends and who they affect.

As wage garnishments become easier to track and process electronically, it’s becoming easier for some organizations to collect and analyze large sets of wage garnishment data and identify national, regional and industry-specific trends.  For example, a study by the ADP Research Institute®, “Garnishment: The Untold Story,” explores wage garnishment trends and offers insights on the demographics and U.S. industries most affected.

Armed with the facts about wage garnishments, employers can refine their compliance strategies to help reduce the risk of fines and penalties.  In addition, businesses with a deeper understanding of wage garnishment requirements can also help reduce the stress, anxiety and embarrassment often felt by employees facing garnished wages.


Previous Post

Social Media and eDiscovery: Collecting Online Conversations for Litigation

Next Post

The Secret Sauce to Boardroom Composition: Start Telling Your Story

Corrinne Flores

Corri FloresCorrinne Flores is the Agency Liaison Director for Garnishments for ADP, LLC. Corrinne manages the relationships between ADP and garnishment agencies to gather information and cultivate positive relationships. She has been with ADP for over 20 years and has spent the majority of her career within the Agency Relations department. Corrinne obtained her Bachelor of Science in Business Management. She has participated on the American Payroll Association’s Government Relations Task Force (GRTF) for Child Support and Garnishment workgroups for the past seven years and is the current Chair of the GATF Child Support workgroup.

Related Posts

digital cybersecurity and network protection

Vetting Vendors’ Cybersecurity

January 26, 2021
RiskMap 2021: Legal and Compliance Outlook

RiskMap 2021: Legal and Compliance Outlook

January 25, 2021
illustration of man on ladder with binoculars, 2021 outlook concept

Financial Services Compliance in 2021

January 25, 2021
illustration of mafia man in silhouette with red tie

The Mafia’s Jackpot: How Criminal Organizations are Profiting from COVID-19

January 22, 2021
Next Post
Lack of diversity still a problem on most boards

The Secret Sauce to Boardroom Composition: Start Telling Your Story

Access realtime data
Dynamic Risk Assessments with Workiva

Special Coverage

Special COVID page graphic

Jump to a Topic:

anti-corruption anti-money laundering/AML Artificial Intelligence/A.I. automation banks board of directors board risk oversight bribery CCPA/California Consumer Privacy Act Cloud Compliance communications management Coronavirus/COVID-19 corporate culture crisis management cyber crime cyber risk data analytics data breach data governance decision-making diversity DOJ due diligence fcpa enforcement actions financial crime GDPR GRC HIPAA information security internal audit KYC/know your customer machine learning monitoring regtech reputation risk risk assessment Sanctions SEC social media risk supply chain technology third party risk management tone at the top training whistleblowing
No Result
View All Result

Privacy Policy

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • RSS Feed

Category

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Whitepapers

© 2019 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
  • Articles
  • Vendor News
  • Podcasts
  • Videos
  • Whitepapers
  • eBooks
  • Events
  • Jobs
  • Subscribe

© 2019 Corporate Compliance Insights