Legal Question in Employment Law in New Jersey

Wage Garnishments

my small business is constantly getting wage garnishments for our employees. Are there any laws that state a small business does not have to comply with a wage garnishment as this has become a hardship for our business. It is costing us money out of our pockets to constantly fill out checks, pay for postage, etc. to comply and yet we can't get rid of these employees or charge them for the pay of the bookeeper that we pay to do this.


Asked on 8/14/08, 11:27 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: Wage Garnishments

The business is required by law to pay wage executions. You do not have to pay more than one wage execution at a time for any one employee. If a single employee has more than one wage execution, they are satisfied in the order that they have been presented. You can deduct five percent of the amount garnished to compensate the business for the costs of processing. The five percent is paid from the amount going to the creditor. That is, the employee gets credit for the entire amount garnished and the creditor gets 95% of that as a service fee.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 8/15/08, 9:57 am


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