I work for an Indiana hospital and am in charge of wage garnishments. My question is can an employee have more than one wage garnishment as long as it does not go past 25% of their disposable earnings?
Wage garnishment in Indiana is allowed under Indiana Code Title 34, Article 25, Chapter 3: Garnishment, and IC 24-4.5-5-105, and federal law 15 U.S.C. 1673(a).
A judgment-creditor may seek wage garnishment if it is aware of the debtor’s place of employment. Under Indiana and federal law, wage garnishment applies to 25% of the debtor’s net take home pay, (i.e., gross pay less statutorily mandated deductions). Indiana allows wage garnishment of up to 60% for child support, but limits that amount if the debtor is a head of household supporting others.
Garnishment of Social Security benefits or pensions for consumer debt is not allowed under federal law.
The following remedies, found in Indiana Indiana Code Title 34 Article 25, are allowed when a court awards a judgment to a creditor who filed a successful lawsuit against a consumer:
To learn more, see the Bills.com Indiana Collection Laws page, which discusses the alternatives Indiana judgment-creditors have to wage garnishment.
Consult with your employer’s legal counsel regarding the application of Indiana and federal employment law. In general, creditors must stand in line when a wage garnishment hits the 25% ceiling. However, if the wage garnishment is administrative and relates to federal student loans, a child support order, or alimony, then the 25% limit does not apply. Again, each state’s laws vary, and an attorney with experience in Indiana’s labor law will give you precise advice.
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