Legal Question in Credit and Debt Law in Illinois

To garnish requires a judgment. They can take 15% of your gross after a calculation of minimum wage standards. I believe unemployment can only be garnished for child support, but i could be wrong. Unpaid student loans can also affect professional licenses.

I think unemployment can be garnished as long as it meets the 45 times the minimum wage standard.

1. 15% of gross weekly wages, or

2. the amount by which disposable earnings for the week exceed the greater of 45 times the federal hourly wage or, under a wage deduction summons, the minimum hourly wage prescribed by the Minimum Wage Law (emphasis added to point out the change in the law�the Minimum Wage Law referred to is Illinois� legislation).

The following examples illustrate the impact of the change: The ABC Printing Company recently received three wage garnishments for three different employees.

Employee A has gross weekly earnings of $750.00 and disposable weekly earnings (DWE) is calculated as $625.00

1. 15% of $750 = $112.50 deduction

2. a. (DWE = $625) � (45 X Federal Minimum Wage or $231.75) = 393.25 deduction;

b. (DWE = $625) � (45 X Illinois Minimum Wage or $292.50) = $332.50 deduction.

Garnishment amount is $112.50 (calculation #1)

Employee B has gross weekly earnings of $260.00 and DWE is calculated as $200.00

1. 15% of $260 = $30 deduction

2. a. (DWE = $200) � (45 X Federal Minimum Wage or $231.75) = $00.00 deduction;

b. (DWE = $200) � (45 X Illinois Minimum Wage or $292.50) = $00.00 deduction.

Garnishment amount is $00.00 (calculation #2a or 2b�they are the same amnt)

Employee C has gross weekly earnings of $350.00 and DWE is calculated as $300.00

1. 15% of $350 = $52.50 deduction

2. a. (DWE = $300) � (45 X Federal Minimum Wage or $231.75) = $68.25 deduction;

b. (DWE = $300) � (45 X Illinois Minimum Wage or $292.50) = $7.50 deduction.

Garnishment amount is $7.50 (calculation #2b)

In all cases, the garnishment amount is the least amount of the three calculations.

Some student loan programs do allow for garnishment without judgment.