Do Employers Have to Notify Employees of Wage Garnishment in Michigan?
Wage garnishment can be a stressful situation for employees facing debt collection. If you’re working in Michigan, you may be wondering: Do employers have to notify employees of wage garnishment?
Yes, Michigan employers are generally required to notify employees of a wage garnishment order. Once an employer receives a writ of garnishment from a court, they must provide the employee with details about the garnishment, including the amount being withheld and the creditor involved. Wage garnishments are typically used to satisfy unpaid debts such as child support, taxes, or court judgments.
With decades of experience helping individuals understand their rights regarding wage garnishment in Michigan, I know that being informed can make a significant difference in how you handle the process. Below, we’ll explore how wage garnishment works in Michigan, what employers must disclose, and how employees can respond.
How Does Wage Garnishment Work?
- A creditor sues you for nonpayment of a debt and wins in court.
- The court sends notices to you and your employer.
- Your employer must comply with the garnishment request and start withholding and remitting payment as soon as the order is received.
- The garnishment continues until the debt is paid.
What can be garnished? A percentage of your compensation or a fixed dollar amount, Child support, Taxes, and Federal student loans.
Are Michigan Employers Required to Inform Employees About Wage Garnishment?
Yes, employers in Michigan are required to notify employees of wage garnishment.
How is an employee notified?
- The employer should provide a copy of the garnishment notice to the employee within seven days.
- The employer can draft a letter that includes the amount to be withheld, how long the garnishment will last, and the specifics of the order.
What happens if the employer doesn’t comply?
- The creditor may take a default judgment against the employer if the disclosure isn’t filed within 14 days.
How can an employee object to a garnishment?
- The employee has 14 days to file an objection to the garnishment after receiving the writ of garnishment.
- The employee may be able to object if the garnishment was made in error or the creditor didn’t follow the law.
What can happen if an employee’s debt is paid?
- The procedure for stopping the garnishment depends on the type of garnishment.
- Creditors will send employers a “Notice of Termination/Release of Wage Garnishment Order”.
When can an employer start withholding wages?
- The employer should start withholding the garnishment immediately upon receiving the garnishment notice.
What Are the Garnishment Rules in Michigan?
In Michigan, creditors can garnish a debtor’s wages, bank accounts, tax refunds, rent, and land contract payments. The amount that can be garnished is limited by law.
Wage garnishment
- Creditors can garnish up to 25% of a debtor’s disposable earnings
- Disposable earnings are the amount left after legally required deductions, like taxes and Social Security
- Creditors can’t garnish more than the amount of disposable earnings that’s more than 30 times the federal minimum wage
- For child support or alimony, creditors can garnish up to 50% of disposable earnings
- Creditors can’t fire or punish an employee for garnishment
Other garnishment Creditors can garnish bank accounts, Creditors can garnish state tax refunds, Creditors can garnish rent payments, and Creditors can garnish land contract payments.
Exemptions
- Some income is exempt from garnishment, including Social Security payments, workers’ compensation benefits, and Supplemental Security Income
- Bankruptcy proceedings can prevent garnishment
- Installment payment orders can prevent garnishment
Objections
- Debtors can file an objection with the court within 14 days of being served the writ of garnishment
- Objections can be based on reasons like the funds are exempt, bankruptcy proceedings are pending, or the judgment has been paid
Can Wages be Garnished Without Notice?
Yes, wages can be garnished without notice in some cases, such as by the IRS, for child support, or for federal student loans. However, most creditors need a court order to garnish wages.
When can wages be garnished without notice?
- Court judgments: Creditors with court orders can garnish wages
- Child support and alimony: Child support enforcement agencies can garnish wages without notice
- Federal student loans: The Department of Education can garnish wages without notice
- Back taxes: The IRS can garnish wages without notice
What can be done if wages are garnished?
- Take steps to stop the garnishment or reduce its impact
- File for bankruptcy
- Negotiate tax debt with the IRS
- Challenge a student loan wage garnishment
What are wage garnishment limits?
- 25% of disposable income per week
- 30 times the federal minimum hourly wage, whichever is less
- No firing from a job
Does Your Employer Know When Your Wages are Garnished?
Yes, your employer will know when your wages are garnished because they will receive a court order or IRS levy.
What can I do?
- You can contest the garnishment.
- You can sue your employer and the creditor for violating the notice requirements.
How long does a wage garnishment last?
- The garnishment can begin the first payday after the employer gets the court order.
- A wage garnishment will be noted on your credit report for up to seven years.
Are Wage Garnishments Confidential?
Wage garnishments are not completely confidential, but employers should keep them confidential to the extent possible.
Explanation
- Public record
A judgment that orders a wage garnishment is a public record. This means that anyone who searches for this information can access it.
- Credit reports
A wage garnishment can appear on credit reports for up to seven years. This can impact your credit score.
- Employer records
Employers must keep accurate records of all garnishment orders and payments made.
- Employee files
Employers should keep employee files, which include information about wage garnishments, in a secure, confidential location.
- Employee interactions
Employers should handle garnishments with respect for privacy and address them discreetly.
Employers should also consider employee morale and provide support and resources to employees undergoing garnishment.
How Long After a Judgement Can Wages be Garnished?
In Michigan, a creditor can request a writ of garnishment 21 days after a judgment is signed. The creditor must file the request before the judgment expires.
Steps in the garnishment process
- Creditor waits 21 days after the judgment
- Creditor requests a Writ of Garnishment
- Court issues the Writ of Garnishment
- Creditor serves the Writ on the garnishee
- Garnishee serves the Writ on the debtor
- Garnishee sends a Garnishee Disclosure to the court, creditor, and debtor
- If there are no objections, the withheld money is sent to the creditor
Additional information
- A garnishment can begin on the first payday after the employer receives the court order
- A garnishment continues until the debt is paid
- A creditor can renew a judgment if the debt is not paid in full
- A creditor can force garnishment without a court order for certain debts, such as back taxes or federal student loans
What is the Garnishee Disclosure fee in Michigan?
In Michigan, the garnishee disclosure fee is $35 for periodic garnishments and $1 for non-periodic garnishments. The fee is $6 if the garnishee is the State of Michigan.
The garnishee disclosure fee is paid to the garnishee. The fee is part of the cost of serving the garnishment, which also includes the cost of serving the writ.
You must serve the garnishee with: Two copies of the Request and Writ of Garnishment, The disclosure form (MC 14), and The disclosure fee.
You must serve the garnishee within 182 days from the date the writ is issued.
The garnishee has 14 days after the garnishment is served to provide information about whether any money is available for garnishment. This information will be provided on the Garnishee Disclosure.
What If My Employer Did Not Notify Me of Wage Garnishment?
If your employer doesn’t notify you of wage garnishment, you can:
- Confirm the garnishment: Check with your payroll department to verify that deductions are due to a garnishment.
- Request documentation: Ask your employer for copies of any notices or communications about the garnishment.
- Contact the IRS: You can call the IRS or visit a local office to verify the garnishment.
- Review your records: Make sure you haven’t missed any IRS notices.
- Contact an attorney: An attorney can research the garnishment order and advise you on how to stop or reduce it.
Wage garnishment is a legal process that allows an employer to withhold part of an employee’s paycheck to pay a debt. It’s usually part of a court order.
Employers are typically required to notify employees when their wages are subject to garnishment. However, in some cases, they’re not legally required to do so.
If you’re facing wage garnishment, you can consider filing a claim of exemption or challenging the garnishment.
How Can I See Who is Garnishing My Wages?
To find out who is garnishing your wages, you can check your pay stub, review court documents, and contact your employer. You can also contact the creditor or relevant government agencies. If you think the garnishment is improper, you can consult a legal professional.
Check your pay stub
- Look for deductions labeled “garnishment,” “levy,” or similar terms
- Check the “deductions” or “other deductions” section
Review court documents
- If you received court documents, they should include the name of the creditor or agency and the amount being garnished
- If you didn’t receive court documents, contact your local courthouse
Contact your employer
- Contact your employer’s payroll department or HR representative
Contact the creditor
- Contact the creditor who initiated the wage garnishment and ask for details on the balance owed
Contact relevant government agencies
- Government agencies may have information on garnishments related to unpaid taxes or other obligations
What is the Maximum Amount That Can be Garnished from a Paycheck?
In Michigan, a creditor can garnish up to 25% of a debtor’s disposable income or the amount that exceeds 30 times the federal minimum wage, whichever is less.
- Disposable income: This is the amount left after taxes and other required deductions from a paycheck.
- Federal minimum wage: In 2024, the federal minimum wage is $217.50 per week.
Example: If a debtor’s disposable income is $600 after taxes and deductions, the creditor can garnish:
- 25% of $600, which is $150
- The amount by which the debtor’s disposable income exceeds $217.50, which is $382.50 ($600 – $217.50)
Other Considerations:
- These limitations don’t apply to garnishments for child support, bankruptcy, or state or federal taxes.
- The first creditor to file a writ of garnishment gets paid first.
- Other creditors must wait until prior debts are paid.
- A debtor has 14 days to dispute a garnishment after a court judgment.
Wage Garnishment Threatening Your Paycheck? Take Action Now
If your wages are being garnished, you may feel trapped—but you have legal options. At Kostopoulos Bankruptcy Law, we help hardworking individuals stop wage garnishment, protect their income, and take back control of their finances. Whether you’re facing garnishment due to debt, taxes, child support, or a court judgment, our experienced attorneys are ready to fight for you.
You work hard for your paycheck—don’t let creditors take more than they should.
Call (877) 969-7482 NOW for a FREE consultation. The sooner you act, the more options you have to stop garnishment and protect your financial future.
Don’t wait—get the help you need today
Further Reading:
- Does Bankruptcy Stop Wage Garnishments in Michigan?
- Finding an Affordable Lawyer for Wage Garnishment in Michigan
- How to Stop Wage Garnishment in Michigan
Resources:
- Michigan Courts – Garnishment Rules & Forms
- Michigan Department of Labor and Economic Opportunity
- U.S. Department of Labor– Wage Garnishment Overview