Blogging for Change

How a Wage Garnishment Can Impact Your Job

by Jesse Campbell on
8/20/2025
in Repaying Debt
Young woman looking over her bills.

The following is provided for informational purposes only and is not intended as legal advice.

If you ever find yourself in the unfortunate position of being sued by a creditor for an unpaid debt, the most likely outcome (if you aren't able to negotiate a deal with the creditor) is that your wages may be garnished to help pay off the debt.

A wage garnishment is typically taken directly from your paycheck, meaning that your employer needs to be made aware of your unpaid debt and arrangements need to be made with payroll to accommodate the garnishment. So beyond the simple financial aspect, a wage garnishment can certainly feel like a negative mark in your employment file. But exactly how can it impact you at your job?

How does a wage garnishment happen?

By no means should you ever be surprised by a wage garnishment. It's not something that can sneak up on you. Just getting to the point of a wage garnishment takes a lot of steps:

  • A debt goes to collections. Any kind of debt, when it goes unpaid for long enough, can end up in collections. While your debt is going unpaid you'll likely be receiving calls and letters asking you to pay. Once the account is charged off and sent to collections, you'll probably get even more calls and letters. Asking you nicely (and then not so nicely) is the first option for most debt collectors.
  • The creditor files a lawsuit. If calling and asking politely isn't working, a creditor may use the courts to compel you to make a payment. They'll sue you, and if they win the court will issue a judgment against you. 
  • The government doesn't need to sue you. Unpaid federal student loans and taxes, as well as select other debts like child support, don't always require a lawsuit. Often the government can just move directly to garnishment if your unpaid debts have reached the required threshold.
  • The creditor asks for a garnishment order. A writ of garnishment is issued by the court, directing your employer to start withholding a portion of your paycheck.
  • Your employer receives the garnishment order. HR and/or payroll will be tasked with processing the order. The employer is legally required to comply.
  • You receive notice of the garnishment. The notice will include the final details, such as the amount being garnished, what accounts are being repaid through the garnishment, and your right to object to the garnishment.
  • Your wages are garnished. The garnishment won't end until the debt is repaid, your work out an alternative repayment plan, you file bankruptcy, or the garnishment is overturned.

How much of my wages can be garnished?

How much of your paycheck gets sent directly to your creditors depend on the laws in your state and the kinds of debt being repaid. Typically, you can expect your garnishment to be the lesser of:

  • 25% of your disposable income (the amount left after legally required deductions like taxes), or
  • The amount by which your disposable income exceeds 30 times the federal minimum wage.

The rules for debts like child support, alimony, federal student loans, and unpaid taxes can be drastically different, so check the laws in your state.

Can I be fired because of a wage garnishment?

There are a lot of reasons why an employer may not be thrilled to have to fulfill the requirements of a wage garnishment. It's extra work for the payroll team and suggests that, at best, you're struggling with money, which may raise red flags depending on your field of work.

Luckily, the Consumer Credit Protection Act (CCPA) prohibits employers from firing employees simply because their wages are being garnished for a single debt.

That language is pretty intentional, though: as soon as you have multiple garnishments, the protection no longer applies.

It's also important to note that the protection doesn't prevent your employer for firing you for other, non-wage garnishment reasons. They just can't fire you expressly because of the garnishment.

Will the garnishment show up on my pay stubs?

Your pay stubs show your earnings and deductions for that pay period, including taxes and health insurance payments. If your wages are being garnished that will also be listed on your pay stub, often as "garnishment" or "levy."

Only the payroll department, and possibly HR, should have access to your pay stub details. So unless you share the fact that you have a wage garnishment with co-workers, that information should remain private.

Can a wage garnishment prevent me from getting a raise or promotion?

While the CCPA prohibits employers from firing you simply because you have a single wage garnishment, there's no prohibition on how employers may view you as a result of the garnishment.

In other words, a wage garnishment itself won't prevent you from getting a raise or a promotion, but there's the very real possibility that the garnishment may have an impact on how you're evaluated. If your job involves handling money or sensitive information, the fact that your wages are being garnished may be considered a mark against you.

The best solution is usually to work hard and make yourself a trusted and valuable member of the team. Financial setbacks happen to all of us and don't have to be a lasting black mark.

Worried about a potential wage garnishment? Work out a payment plan with your creditors before things get that far. MMI debt resolution plan (DRP) is great way to negotiate a partial repayment of your debts, satisfying your creditors and creating a monthly payment you can actually afford.

Tagged in Debt strategies, Laws and legal questions, Managing a loss of income

Jesse Campbell photo.

Jesse Campbell is the Content Manager at MMI, with over ten years of experience creating valuable educational materials that help families through everyday and extraordinary financial challenges.

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