A wage garnishment is an order for an employer to withhold a certain portion of an employees paycheck. The money that is withheld goes to a creditor, a tax authority or any other entity that is owed money. Typically, wage garnishment is used to repay tax debt or other debts owed to the government. Wage garnishment is regulated in part by Title III of the Consumer Credit Protection Act.
The terms of the act stipulate how much of a person's paycheck can be garnished. It also protects employees from being terminated if wages are only being garnished to pay a single debt. However, this act does not say anything about matters unrelated to how much is being garnished or if an employee is terminated for having wages garnished. The law applies to anyone with personal earnings such as wages or salaries.