Understanding Wage Garnishments in Ohio: A Guide for Consumers

Wage garnishment, a significant concern for many in Ohio, is a legal procedure where a portion of a person’s earnings is withheld by their employer for the payment of a debt. This blog post aims to demystify the process of wage garnishments, providing crucial information for those facing or at risk of garnishment.

What are Wage Garnishments and How Do They Occur?

• Wage garnishments typically occur after a creditor obtains a judgment against a debtor.
• Exceptions include taxes, child support, and student loans, where garnishments can happen without a judgment.

Wage Garnishment Calculations and the Consumer Credit Protection Act (CCPA) Guidelines:

• Garnishments are calculated based on disposable income, following both Ohio law and the CCPA.
• For example, if an individual’s weekly earnings are $500, the maximum garnishment under Ohio law and the CCPA is the lesser of 25% of disposable income or the amount by which earnings exceed 30 times the federal minimum wage ($7.25 x 30 = $217.50). In this case, the garnishment would be $125 per week. (500 x .25 = $125 or 500 – 217.50 = $282.50. Lesser of two amounts is $125)
• The CCPA ensures protection of a portion of earnings; more details are available on the Department of Labor’s website: Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act’s Title III (CCPA) | U.S. Department of Labor (dol.gov)

Employer’s Role and Protections for Employees:

• Employers are legally bound to comply with garnishment orders.
• It’s illegal for employers to terminate an employee solely because of wage garnishment for any one debt.

Defending Against Garnishments:

• There are legal strategies to challenge or reduce wage garnishments.
• Seeking legal counsel can help in negotiating settlements, challenging the garnishment order, or exploring other debt relief options.

CONCLUSION: Do Not Let Judgments Impact Your Wages and Financial Stability

Wage garnishment can significantly impact your financial stability, often resulting in long-term consequences. Proactively addressing potential wage garnishments before judgments are entered is crucial. The costs associated with extended garnishment periods usually surpass any legal expenses incurred in addressing these issues early on. At MPC LAW, we emphasize the importance of early legal intervention. Our team is skilled in defending against or negotiating wage garnishments, aiming to minimize their financial impact on your life. Contact MPC LAW for proactive legal guidance and support in managing wage garnishment challenges.