Wage Garnishment Issues

When Garnishment Crosses the Line It’s Time to Push Back

Having part of your paycheck withheld can be frustrating, especially if you’re already juggling rent, groceries, and other basic needs. But when wage garnishment goes beyond what the law allows, it’s not just frustrating. It’s a violation of your rights. Many New York workers don’t even realize how limited garnishment rules are, or that their employer may be taking too much or acting too soon.

If you’re facing wage garnishment and something doesn’t feel right, you’re not alone. At Horn Wright, LLP, our employment law attorneys work with people who’ve been pushed to the edge by illegal deductions and shady employer tactics. We’re here to help you understand your protections and stop the financial bleed.

What Wage Garnishment Is and How It Works in New York

Wage garnishment happens when a portion of your paycheck is withheld to repay a debt, usually by court order. This money might go toward unpaid taxes, defaulted student loans, child support, or credit card judgments. In New York, garnishment is governed by Civil Practice Law and Rules (CPLR) §5231.

The process typically starts when a creditor gets a legal judgment. They file paperwork with the court to begin garnishing your wages, and your employer is notified by way of an income execution order. Once that happens, they’re legally required to withhold the specified amount.

But not all debts qualify for garnishment, and not all income is eligible. Federal law, through the Consumer Credit Protection Act (15 U.S.C. §1673), also limits how much can be taken, offering a safety net for workers trying to stay afloat.

Legal Limits on How Much of Your Pay Can Be Taken

There are strict legal limits on how much of your disposable earnings, what’s left after legally required deductions like taxes, can be garnished. In New York, those limits are generally:

• 10% of gross earnings unless a court orders more. In some cases, like child support or tax debts, garnishments can rise higher.
• The lesser of 25% of disposable income or the amount by which income exceeds 30 times the federal minimum wage. This rule comes from federal law and acts as a baseline cap.
• Protection from garnishment for certain types of income like Social Security, unemployment benefits, and disability payments unless specifically authorized by statute.

Employers who deduct more than allowed under these rules may be held liable, and courts can order them to repay what was wrongfully taken. If you’re seeing more than 10% gone and don’t understand why, our trusted team can help in investigating.

Types of Debts That Can Lead to Garnishment

Not all unpaid debts result in wage garnishment. Only certain types of financial obligations qualify under New York and federal law. Here’s a breakdown of the most common ones:

• Court-ordered child support or alimony: These are prioritized debts, and garnishment can reach up to 50-65% of your disposable income under New York Domestic Relations Law and federal Title III guidelines.
• Unpaid income taxes: The IRS and New York Department of Taxation and Finance can garnish wages without a court order in some cases, and they’re allowed more flexibility in how much they take.
• Consumer debt judgments: Credit card companies and medical providers must first obtain a court judgment before they can garnish your wages through CPLR §5231.

Some types of debt, like payday loans or private informal arrangements, typically don’t result in wage garnishment unless they’ve been escalated to court.

Your Rights When You Receive a Garnishment Notice

Once your employer is served with an income execution notice, they’re required to begin withholding money from your paycheck. But you have rights before and after this process begins. Under CPLR §5231 and the Fair Debt Collection Practices Act (FDCPA), you must be given notice and an opportunity to challenge the garnishment.

You can request a hearing if the amount being taken seems too high or if the debt isn’t valid. In New York, you’re allowed to submit financial hardship claims to show the garnishment would leave you unable to meet basic living expenses.

Your employer cannot fire, demote, or punish you for having your wages garnished. Federal law under 15 U.S.C. §1674 makes it illegal for an employer to take any adverse action based solely on a garnishment order.

What to Do If Too Much Is Being Withheld

If you think your employer is withholding more than they’re legally allowed to, don’t wait. There are steps you can take to stop the overreach and get your money back.

Start by reviewing your paystub carefully. Look for the garnishment line item and calculate whether it exceeds the federal or state maximums. Keep all pay records and communication from your employer or the creditor.

Next, notify your employer in writing of the suspected violation. If they don’t correct the mistake, you can request a garnishment review hearing in court. You can also file a complaint with the New York State Department of Labor or seek legal help to press for damages and repayment.

How to Challenge or Modify a Garnishment Order in New York

Challenging a garnishment order starts with understanding what’s being taken and why. You’ll need to review the original judgment and determine whether the debt is legitimate. You may have grounds to challenge if:

• The debt was never yours or already paid
• The garnishment amount exceeds legal limits
• You’re facing financial hardship that the court hasn’t considered

To modify or stop the garnishment, you’ll need to file a motion in the court that issued the order. This often includes completing a financial disclosure affidavit showing your income, expenses, and how the garnishment is impacting your basic needs. Judges in New York are authorized under CPLR §5240 to reduce or pause garnishment in cases of extreme hardship.

Legal representation can help make your case stronger and prevent delays. If your wages are being seized unfairly, taking action quickly improves your chances of relief.

How New York’s Garnishment Rules Differ from Maine’s Limits

New York and Maine share many garnishment rules, but there are key differences. Both states follow the federal CCPA limits, but New York’s statutes, especially CPLR §5231 and §5240, give courts more flexibility in modifying garnishments based on hardship.

In Maine, garnishment law is detailed in Title 14 M.R.S. §3127-A. While the protections are similar, the modification process may be slower, and wage exemptions can differ slightly. New York’s more robust enforcement and modification provisions can be a relief for low-wage workers.

Another big difference? New York courts tend to enforce anti-retaliation protections more rigorously, holding employers accountable if they mistreat workers due to garnishment notices. That gives employees more leverage to challenge mistreatment.

Can Employers Be Held Liable for Illegal Garnishment Deductions

Yes, and it happens more than you’d think. If your employer fails to follow the legal guidelines for wage garnishment, they can face civil penalties, and may be required to repay any amount wrongfully taken.

Courts in New York may order restitution under CPLR §5231 if the employer deducted too much or continued garnishment after the debt was paid. If the employer acted negligently or retaliated against the employee, they can also be sued under federal law.

Employers who misapply garnishment orders or ignore procedural requirements may even be fined by state labor authorities. That’s why it’s critical to speak up early if your paychecks show signs of improper withholding.

How Horn Wright, LLP, Can Help You Push Back

You shouldn’t have to suffer because someone mishandled your paycheck. If your wages are being garnished beyond what the law allows, or without proper process, our team at Horn Wright, LLP, is ready to step in. Our employment law attorneys know New York’s garnishment laws inside and out.

We’ll investigate the deduction, hold employers accountable for unlawful practices, and make sure your voice is heard in court if needed. We don’t just fix the problem. We make sure it doesn’t happen again. And because we’ve earned national recognition for advocating for workers, you’ll be backed by a firm that gets results.