WAGE GARNISHMENT:FREQUENTLY ASKED QUESTIONS

JESSICA STILLWELL, GARNISHMENT LIAISON

ATTORNEY GENERAL’S OFFICE

FEBRUARY 21, 2019

TYPES OF CREDITOR WRITS

CONTINUING NON-CONTINUING

• CAPTURES EARNINGS FOR 60

DAYS

• CAPTURES 25% OF DISPOSABLE

WAGES

• FOR EMPLOYEES ONLY

• MOST OFTEN USED

• CAPTURES FUNDS FOR ONE DAY

ONLY

• CAPTURES 100% OF FUNDS

OWED TO DEFENDANT

• FOR VENDORS, CONTRACTORS –

NOT EMPLOYEES

• VERY RARE, BUT IMPORTANT TO

ACT FAST

CHANGES TO GARNISHMENTLAW, PT. 1

• AS OF 1/1/19, EMPLOYERS BEGAN DEDUCTING PREMIUMS FOR FAMILY AND

MEDICAL LEAVE PROGRAM. THESE ARE CONSIDERED MANDATORY

DEDUCTIONS.

• HOUSE BILL 1169 ADDED A NEW TYPE OF 60-DAY GARNISHMENT FOR PRIVATE

STUDENT LOAN DEBTS ONLY (EFFECTIVE 6/7/18)

• EXEMPTIONS ARE BASED ON HIGHEST STATE MINIMUM WAGE OR 85X

DISPOSABLE EARNINGS

• A CHECKBOX IN THE WRIT CAPTION WILL LET YOU KNOW THE WRIT IS FOR A

PRIVATE STUDENT LOAN

CHANGES TO GARNISHMENTLAW, PT. 2

• PRIVATE STUDENT LOAN WRIT:

CHANGES TO GARNISHMENTLAW, PT. 3

“REGULAR” STUDENT LOAN WRIT:

PROPER SERVICE

• BY LAW, ALL CREDITOR WRITS MUST BE SERVED ON THE AGO

• IF A WRIT COMES TO YOU DIRECTLY…TWO OPTIONS:

• WAIVING SERVICE OF THE WRIT

• SENDING WRIT BACK TO CREDITOR

• WRIT IS THE ONLY DOCUMENT THAT MUST COME TO THE AGO FIRST

HOW THE GARNISHEE IS NAMED

• THIS DETERMINES HOW FAR A WRIT CAN “TRAVEL”

• “STATE OF WASHINGTON” (ONLY)

• “STATE OF WASHINGTON / PIERCE COLLEGE”

• PIERCE COLLEGE” (ONLY)

• NOT YOUR EMPLOYEE? LET ME KNOW!

CALCULATING PAY PERIODS

• COUNT 60 DAYS PAST THE DATE THE WRIT WAS SERVED ON THE AGO

• OFM’S EXCEL WORKSHEETS AUTOMATICALLY CALCULATE THIS

• WITHHOLD FROM THE NEXT AVAILABLE PAY PERIOD (EVEN IF WAGES WERE

EARNED BEFORE WRIT WAS RECEIVED)

• IF A PAY PERIOD ENDS AFTER THE 60-DAY TIME FRAME, DO NOT WITHHOLD

ANYTHING FROM THAT PAY PERIOD

RULES OF THUMB:

CALCULATING PAY PERIODS

• WRIT SERVED ON AGO JANUARY 28TH:

• EFFECTIVE PERIOD = 1/28 – 3/29

• PAY PERIODS TO WITHHOLD:

• 1/16 – 1/31 2/1 – 2/15 2/15 – 2/28 3/1 – 3/15

• YOU CANNOT WITHHOLD FROM THE 3/16 – 3/31 PAY PERIOD BECAUSE THE

60 DAYS ENDS PRIOR TO 3/31

EXAMPLE #1:

CALCULATING PAY PERIODS

• WRIT SERVED ON AGO JUNE 16TH:

• EFFECTIVE PERIOD = 6/16 – 8/15

• PAY PERIODS TO WITHHOLD:

• 6/1 – 6/15 6/16 – 6/30 7/1 – 7/15 8/1 – 8/15

• YOU CAN WITHHOLD FROM 6/1 – 6/15 PAY PERIOD BECAUSE YOU WERE

HOLDING THAT MONEY WHEN THE WRIT WAS SERVED

• YOU CAN WITHHOLD FROM THE 8/1 – 8/15 PAY PERIOD BECAUSE THE 60

DAYS ENDS PRIOR TO 3/31

EXAMPLE #2:

GARNISHMENT ANSWERS

• DUE 20 DAYS AFTER RECEIPT

• FORM OF ANSWER:

• BEST PRACTICE – USE PROVIDED ANSWER FORM OR CREATE ONE FROM THE

OFFICIAL COURT FORM

• ANY ANSWER MUST CONTAIN LANGUAGE FROM SECTION I OF THE FORM AND

DETAILED CALCULATIONS FROM SECTION II

• ORIGINAL GOES TO COURT, COPIES MUST GO TO PLAINTIFF AND EMPLOYEE

• PUT YOUR CONTACT INFORMATION IN SECTION III

DOES IT NEED TO BE FILED?• YES

• SUPERIOR COURT WRITS

• ORDERS TO PAY

• ORDERS OF DISMISSAL

• NO

• DISTRICT COURT WRITS

• 2ND ANSWERS

• RELEASES

• PAPERWORK FOR ANY OTHER TYPE

OF GARNISHMENT

ORDERS TO PAY

• MUST BE SIGNED BY JUDGE BEFORE YOU CAN PAY

• SUPERIOR COURT WRIT – MONEY GOES TO COURT CLERK

• DISTRICT COURT WRIT – MONEY GOES TO CREDITOR

• IF AMOUNT IS WRONG, ASK CREDITOR FOR AN AMENDED VERSION

• NO TIME LIMITS FOR CREDITORS OR EMPLOYERS

• HOLDING MONEY FOR MORE THAN ONE YEAR? CONTACT ME!

FAILURE TO ANSWER

• CREDITOR CAN OBTAIN A DEFAULT JUDGMENT IF:

• YOU FAIL TO ANSWER THE WRIT (OR IT GETS LOST)

• YOU FAIL TO WITHHOLD

• YOU WITHHOLD AN INCORRECT AMOUNT

• IF YOU RECEIVE A NOTICE OF DEFAULT…PLEASE CONTACT ME IMMEDIATELY!

• FILL OUT THE ANSWER(S) AS IF YOU HAD BEGUN WITHHOLDING ON THE DATE

THE WRIT WAS RECEIVED

• BE READY TO PAY WHEN YOU RECEIVE THE ORDER TO PAY

• ASK YOUR EMPLOYEE TO AUTHORIZE VOLUNTARY PAYMENTS

• AGREEMENT SHOULD REFLECT A PAYMENT SCHEDULE

• IF EMPLOYEE REFUSES TO SIGN, INVOLUNTARY WAGE DEDUCTION IS AN OPTION

RECOUPING MISSED WITHHOLDINGS

SEASONAL EMPLOYEES

• GARNISHMENT ONLY EFFECTIVE IF PERSON IS ACTIVELY EMPLOYED WHEN THE

WRIT IS SERVED

• IF PERSON WILL BE EMPLOYED WITHIN 60 DAYS, YOU HAVE A COUPLE OPTIONS:

• ANSWER AS NOT A CURRENT EMPLOYEE, BUT PROVIDE REHIRE DATE

• BEGIN WRIT AND COLLECT WHAT YOU CAN DURING ORIGINAL 60-DAY PERIOD

STACKING WRITS

• WRIT SERVED WHILE ANOTHER IS ACTIVE BECOMES “STACKED”

• START STACKED WRIT ASAP AFTER FIRST WRIT ENDS –

IF FIRST WRIT ENDS EARLY, STACKED WRIT SHOULD BEGIN EARLY

• STACKING 60-DAY WRITS FROM SAME CREDITOR – OK

• STACKING 60-DAY WRITS WITH SAME CASE NUMBER – NOT OK

PRIORITY OF GARNISHMENTS

• HIGHEST PRIORITY

• #1 CHILD SUPPORT

• #2 SPOUSAL SUPPORT

• EVERYTHING ELSE

• CREDITOR WRIT

• FEDERAL GARNISHMENT (EDU, ETC.)

• IRS LEVY

• STATE AGENCY TAX LEVY

• MANDATORY WAGE ASSIGNMENT

• LEGAL FINANCIAL OBLIGATION

GARNISHABLE OR NOT?PT. 1

• WORK STUDY

• FEDERAL WORK STUDY:

NOT GARNISHABLE

• STATE WORK STUDY:

GARNISH AWAY

• HEADSTART FUNDS:

GARNISH AWAY

• UNION DUES

• UNION MEMBERSHIP MUST BE REQUIRED BY

A STATE LAW TO MAKE IT A MANDATORY

DEDUCTION

• WFSE’S CBA REQUIRES MEMBERSHIP, BUT

THE CBA IS NOT A STATE LAW

GARNISHABLE OR NOT?PT. 2

• TAKE IT

• S/L AND A/L BUYOUT

• SHARED LEAVE

• BACK WAGES

• UNION REIMBURSEMENTS

• EARNED INCOME TAX

CREDIT

• LEAVE IT

• ADDITIONAL VOLUNTARY

FEDERAL WITHHOLDING

• MEP / VEBA

REIMBURSEMENTS

• RETIREMENT BENEFITS

• FMLA PREMIUMS

OUT OF STATE GARNISHMENTS

• ALL CREDITOR WRITS MUST BE FILED IN WASHINGTON STATE

• OTHER STATES HAVE NO AUTHORITY TO GARNISH

• PER RCW 6.40 – “UNIFORM FOREIGN JUDGMENTS ACT”

• OUT-OF-STATE WRITS CAN BE SENT TO ME

• CHILD SUPPORT GARNS ARE THE ONLY EXCEPTION TO THIS RULE

STUDENT LOAN GARNISHMENTS

• COLLECTS 85% OF DISPOSABLE EARNINGS OR 30X FEDERAL MINIMUM WAGE

• FEDERAL MINIMUM WAGE RARELY CHANGES

• ONGOING ORDER – CONTINUES UNTIL SATISFIED OR RELEASED

• HEALTH INSURANCE PREMIUMS ARE CONSIDERED MANDATORY DEDUCTIONS

• SAME RULES APPLY TO ALL FEDERAL AGENCY GARNISHMENTS

FEDERAL LOANS

STUDENT LOAN GARNISHMENTS

• COLLECTS 85% OF DISPOSABLE EARNINGS OR 50X STATE MINIMUM WAGE

• STATE MINIMUM WAGE CHANGES YEARLY

• ONLY LASTS FOR 60 DAYS

• MANDATORY DEDUCTIONS ARE THE SAME AS FOR A REGULAR 60-DAY WRIT

• A RARE TYPE OF WRIT; THEY USUALLY COME FROM PATENAUDE & FELIX

PRIVATE LOANS

CHILD SUPPORTPT. 1

• CHILD SUPPORT ORDERS CAN TAKE UP TO 50% DISPOSABLE INCOME

• DISPOSABLE INCOME IS CALCULATED IN THE SAME MANNER AS A 60-DAY WRIT

• MUST REMIT FUNDS WITHIN ONE WEEK OF PAYDAY

• ONGOING ORDER – CONTINUE UNLESS RELEASED OR EMPLOYEE IS

TERMINATED

CHILD SUPPORTPT. 2

• COORDINATING CHILD SUPPORT WITH ANY OTHER TYPE OF GARNISHMENT:

• DETERMINE THE STANDARD 25% OF DISPOSABLE EARNINGS

• SUBTRACT THE CHILD SUPPORT PAYMENT FROM THE 25% AMOUNT

• WHATEVER IS LEFT OVER CAN GO TO THE NEXT CREDITOR IN LINE

CHILD SUPPORTPT. 3

• CHILD SUPPORT ORDERS FROM OTHER STATES MUST BE HONORED

• DSHS WILL PROCESS OUT OF STATE ORDERS FOR YOU, INCLUDING

COORDINATING PAYMENTS TO MULTIPLE STATES

• SPOUSAL SUPPORT ORDERS:

• OUT OF STATE ORDERS MUST BE HONORED

• DSHS WILL PROCESS THESE AS WELL, BUT ONLY IF THERE IS A CHILD

SUPPORT ORDER TO GO ALONG WITH IT

CHILD SUPPORTPT. 4

• SEASONAL EMPLOYEES – REPORT TIME OFF TO THE CSO

• RESUME WITHHOLDING WHEN EMPLOYEE COMES BACK TO WORK

• MISS A PAYMENT? PLEASE TAKE WHATEVER STEPS NECESSARY TO PAY ASAP

• NOT REQUIRED TO GIVE EMPLOYEE’S BANKING INFORMATION TO ANY CHILD

SUPPORT OFFICE

STATE AGENCY GARNISHMENTS

• ORDERS TO WITHHOLD & DELIVER CONTINUE UNTIL PAID IN FULL

• MAY BE REQUIRED TO CONTACT AGENCY FOR FINAL PAYOFF AMOUNT

• STATE AGENCIES CAN GARNISH 100% OF WAGES, BUT THEY USUALLY REQUEST…

• ESD: 25% OF DISPOSABLE OR 30X FEDERAL MIN WAGE

• L&I: 25% OF DISPOSABLE OR 35X FEDERAL MIN WAGE

• DOR: 25% OF DISPOSABLE AND 100% OF FINAL PAYCHECK / PAYOUT

IRS LEVIESPT. 1

• TWO TYPES OF IRS LEVIES:

• “NOTICE OF LEVY 668-A” IS A ONE-DAY LEVY

• “NOTICE OF LEVY ON WAGES, SALARY AND OTHER INCOME” CONTINUES

UNTIL RELEASED BY THE IRS

• THE IRS CAN TAKE MORE THAN 25% OF DISPOSABLE EARNINGS

IRS LEVIESPT. 2

• MUST DELIVER PARTS 3 & 4 OF LEVY TO EMPLOYEE ASAP

• IF EMPLOYEE DOESN’T RESPOND IN TIME:

• USE “MARRIED FILING SEPARATE” AND ONE EXEMPTION TO DETERMINE

WITHHOLD AMOUNT (NOT THEIR W-4)

• THIS LEAVES EMPLOYEE WITH ABOUT 40% OF THEIR PAYCHECK

• IF EMPLOYEE TURNS THE FORMS IN LATE, IRS WILL USUALLY ACCEPT CHANGES

IRS LEVIESPT. 3

• AN EMPLOYEE WITH A LEVY MAY CHANGE THEIR WITHHOLDINGS AT ANY TIME

• ANY VOLUNTARY WITHHOLDING ALREADY IN PLACE CAN STAY

• IRS LEVIES COMPETE “FIRST IN TIME” WITH ALL GARNISHMENTS EXCEPT CHILD

SUPPORT

• SEND PAYMENTS TO THE IRS ON EACH PAYDAY

VOLUNTARY WAGE ASSIGNMENTS

• REQUIREMENTS:

• IF EMPLOYEE IS MARRIED, SPOUSE MUST SIGN

• EMPLOYER CANNOT BE HELD LIABLE FOR MISTAKES OR OMISSIONS

• YOU MAY DECLINE THE WAGE ASSIGNMENT OR REQUEST CHANGES TO IT

• ALL OTHER GARNISHMENTS STAY IN PLACE – CAN TAKE MORE THAN 2

• I’M HAPPY TO TAKE A LOOK AND MAKE SUGGESTIONS

BANKRUPTCIESPT. 1

• PROVIDING PROOF OF BANKRUPTCY IS THE EMPLOYEE’S RESPONSIBILITY

• YOU CAN VERIFY BY CALLING THE BANKRUPTCY COURT’S AUTOMATED

INFORMATION LINE: (866) 222-8029

• ONCE YOU OBTAIN PROOF, STOP GARNISHING IMMEDIATELY –

EVERYTHING EXCEPT CHILD SUPPORT

BANKRUPTCIESPT. 2

• FUNDS WITHHELD AFTER THE FILING DATE GO BACK TO THE EMPLOYEE ASAP

• INCLUDES DEDUCTION(S) ON UPCOMING PAYCHECK

• FUNDS WITHHELD BEFORE THE FILING DATE ARE HELD BY YOU

• IF YOU ARE HOLDING FUNDS, SEND THE “20-DAY” LETTER ASAP.

BANKRUPTCIESPT. 3

• BANKRUPTCY ATTORNEYS MAY DEMAND ALL MONIES IMMEDIATELY

• NOPE! FOLLOW THIS PROCEDURE INSTEAD

• 99% OF CREDITORS WILL RESPOND BY RELEASING THEIR GARNISHMENT.

• NEW GARNISHMENT? I HAVE A LETTER FOR THAT TOO.

ANSWERING EMPLOYEEQUESTIONS

• DIRECT EMPLOYEE TO CREDITOR FOR MORE INFORMATION

• WE ARE LEGALLY REQUIRED TO WITHHOLD

• SUGGEST LEGAL HELP:

• COUNTY BAR ASSOCIATION

• NORTHWEST JUSTICE PROJECT: WWW.NWJUSTICE.ORG

• WASHINGTON LAW HELP: WWW.WASHINGTONLAWHELP.ORG

RESOURCES FOR YOUPT. 1

HTTP://WWW.OFM.WA.GOV/RESOURCES/PAYROLL/GARNISH_AND_OVERPYMTS.ASP

• MANY EXCEL WORKSHEETS

AVAILABLE

• IF YOU NEED HELP

CHANGING THE

WORKSHEETS, LET ME KNOW

RESOURCES FOR YOUPT. 2

HTTP://WWW.COURTS.WA.GOV/COURT_DIR/COURTDIRECTORY.PDF

• CONTACT INFORMATION

FOR ALL COUNTY COURTS

• HELPFUL IF A CREDITOR

OMITS THE COURT’S

ADDRESS ON A WRIT

RESOURCES FOR YOUPT. 3

HTTP://WWW.COURTS.WA.GOV/FORMS/?FA=FORMS.CONTRIBUTE&FORMID=20

• CAN USE THE COURT’S ANSWER

FORMS TO RESPOND TO ANY WRIT

RESOURCES FOR YOUPT. 4

HTTP://WWW.DSHS.WA.GOV/PDF/PUBLICATIONS/22-1190.PDF

• DSHS ALSO OFFERS

EMPLOYER WORKSHOPS

• CALL (800) 591-2760 FOR:

• GENERAL QUESTIONS

• HELP WITH OUT OF STATE

ORDERS

RESOURCES FOR YOUPT. 5

• INCLUDES CITATIONS FOR ALL

LAWS

• DATE CALCULATION EXAMPLES

FOR 60-DAY CREDITOR WRITS

• BANKRUPTCY REFUNDS

• ALL SORTS OF GOOD

INFORMATION!

PERTINENT LAWS• FEDERAL

• CONSUMER CREDIT PROTECTION

ACT = 15 U.S.C. § 1671

• RESTRICTIONS ON GARNISHMENT

WITHHOLDINGS = 15 U.S.C. § 1673

• STUDENT LOAN GARNISHMENTS =

20 U.S.C. § 1095A

• STATE

• CREDITOR GARNISHMENTS:

• RCW 6.27

• STATE AGENCY GARNISHMENTS:

• DOR = RCW 82.32

• L&I = RCWS 51.32 & 51.48

• ESD = RCW 50.24

• CHILD SUPPORT = RCW 74.20A

ADDITIONAL QUESTIONS?

I AM ALSO A RESOURCE!

JESSICA STILLWELL

JESSICAS@ATG.WA.GOV

(360) 753-9673